The Impact Of Financial Reporting Quality On Corporate Dividend: Evidence From Emerging Countries In Asia

Abstract

In this research paper, I am going to investigate the effect on the financial reporting quality (FRQ) and dividend payout. I decided to utilize specific in Asia especially in 9 emerging countries which tend to have lower controlling in reporting quality than the developed countries. According to my findings, I have discovered that there is a positive link between more quality financial reporting and dividend payout in companies that have problems with their free cash flow, are confronted with financial constraints, in emerging countries that provide more reservation for minority shareholders. On the other hand, when located in nations that have stronger accounting rules, businesses profit less from this favorable relation. The findings have been checked for robustness multiple times, and each time they have been found to be accurate. This demonstrates that more integrity financial information is effective in minimizing information asymmetry, the costs of internal agency and their association with parties from the outside.