Corporate Governance, Firm Performance and Dividend Policy: Evidence from Jordanian and Australian Listed Firms

Abstract

Following high profile corporate scandals and collapses in recent years, many countries have adopted corporate governance frameworks. Good governance practices play an effective role in providing transparency and accountability of company management, helping to mitigate conflicts of interest, building investor confidence and attracting investments. This purpose of this study is to examine the relationship between corporate governance mechanisms and firm performance as well as corporate governance mechanisms and dividend policy in Jordanian and Australian listed non-finance firms. Jordan is in the Middle Eastern region, and has a pioneer, emerging market characterized by a high block-holding ownership. Australia is a developed market with strong legal protection and investors' rights. Both countries have experienced little effect from the Global Financial Crisis (GFC) and, therefore, potentially provide good comparative cases from which to derives insight into the operations of corporations and how best to manage them to achieve economic development, particularly in emerging markets.