Determinants Of Dividend Policy in Non-Developed Countries: A Meta-Analysis Review and Meta- Analysis Regression

Abstract Book of the 11th International Conference on Management, Economics and Finance

Year: 2026

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Determinants Of Dividend Policy in Non-Developed Countries: A Meta-Analysis Review and Meta- Analysis Regression

Michael Dwumah

ABSTRACT:

Purpose: Recent dividend policy research highlights that empirical evidence from non-developed economies remains fragmented, theoretically inconclusive, and methodologically heterogeneous, particularly with respect to firm-level and governance-related determinants. This study examines the determinants of dividend policy in non-developed countries, integrating evidence from empirical literature through a comprehensive meta-analysis review.
Design/Methodology/Approach: The study first conducts a systematic literature review to identify and screen relevant empirical dividend policy studies from non-developed economies, constructs a quantitative database from the eligible articles, and then applies meta-analytic econometric techniques to synthesise the reported findings. The researcher employed a random-effect model to estimate pooled effect sizes, test heterogeneity (I² statistics), and detect potential publication bias. Meta-regression was further applied to examine the moderating effects of methodological and temporal factors such as sample size, publication year, and model specification.
Findings: The meta-analysis reveals that profitability, firm size, and liquidity exhibit significant and positive pooled effects on dividend pay-out ratios, indicating that firms with stronger financial capacity tend to distribute higher dividends in non-developed countries. In contrast, leverage and growth-related variables exhibit negative pooled effects, suggesting that financially constrained firms are less likely to engage in dividend distributions. Governance-related variables, including ownership concentration, board characteristics, and state ownership, show weaker and less consistent effects, with substantial variation across studies, highlighting differences in institutional and economic environments across non-developed nations. The findings from the meta-regression indicate that the estimated relationships are not systematically influenced by publication year, sample size, or econometric specification, suggesting a high degree of stability in the pooled findings.
Research Limitations: A key constraint of the study is its sole dependence on the Scopus database, which may overlook regional journals that are not indexed, potentially resulting in limited representation of research from smaller developing countries. Differences in how data is measured and reported across the included studies also present challenges in comparing findings.
Practical Implications: The findings provide clear implications for corporate managers, policymakers, and investors. Managers should align dividend policies with firm profitability and liquidity while maintaining optimal leverage levels to sustain dividend pay-out. The results imply that targeted improvements in corporate governance frameworks, particularly those affecting managerial oversight and pay-out discipline, may enhance the effectiveness of dividend policies as a signalling and agency-mitigating mechanism in non-developed economies. For investors, the results highlight that profitability and firm size remain reliable indicators of dividend-paying capacity in non-developed markets.
Originality/Value: This study contributes to the dividend policy literature by providing a comprehensive quantitative synthesis of empirical evidence from non-developed countries, where existing findings remain fragmented and inconclusive. By integrating results from 56 empirical studies through a combination of meta-analytic estimation and bibliometric mapping to assess heterogeneity and robustness, the research identifies which firm-level and corporate governance determinants exhibit consistent relationships with dividend pay-out decisions. The findings therefore offer a transparent and methodologically rigorous reference point for future empirical and theoretical research on dividend policy in developing and emerging economies.

Keywords: Dividend Policy; Meta-Analysis; Corporate Governance; Non-Developed Markets; Agency theory; Publication Bias