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ARTÍCULO
TITULO

Influence of Transparency and Disclosures on the Dividend Distribution Decisions in the Firms: Do Profitability and Efficiency of Firms Matter?

Shailesh Rastogi    
Geetanjali Pinto    
Amit Kumar Pathak    
Satyendra Pratap Singh    
Arpita Sharma    
Souvik Banerjee    
Jagjeevan Kanoujiya and Pracheta Tejasmayee    

Resumen

The purpose of this study is to determine if the impact of transparency and disclosure (TD) levels on shareholders? current income (dividends) is moderated by technical efficiency (te) and profitability. The study employs econometrics on panel data from 78 BSE-listed enterprises across the 2016?2020 sample period. This conclusion suggests that when TD grows, dividends tend to drop initially, but above a certain threshold level, growing TD levels lead to increased payouts. Furthermore, dividends are adversely associated with the moderating variable ?te? in terms of both constant and variable return to scale. On the other hand, moderation by profitability was shown to have a substantially favourable effect on dividends. According to this study, a company?s dividend policy is influenced by its TD levels, which are controlled by its efficiency and profitability. Developing a TD index provides more information on the efficacy of the corporate governance (CG) system. The study?s distinctiveness lies in examining the relationships between transparency, disclosures, and these aspects as they relate to profitability, efficiency, and dividend distribution choices to ascertain whether the companies? operating effectiveness and financial success matter in this circumstance. The study?s practical and policy implications relate to societal repercussions, which include encouraging more openness and responsibility in business practices, thereby increasing confidence and accountability in decisions about dividend distribution, regardless of efficiency and profitability. The study?s originality is in examining how profitability, efficiency, and dividend distribution decisions relate to transparency and disclosures to determine if companies? operating efficiency and financial success matter in this situation.

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