CFC Workshop

Elizaveta Tatarinova, a Doctoral Student of the Lab, presented the theoretical part of her thesis "Influence of Board Composition on Payout Policy".

Alina Kostochko

Tha study points out that the main theories that relate the board characteristics are the agency theory and the resource dependence theory. The agency theory discusses the importance of monitoring to reduce the agency costs that arise due to the separation of ownership and control (the conflict of managers and shareholders). The resource dependence theory highlights the importance of the unique expertise (in terms of skills, education, experience) that directors have and the should influence the payout policy.The majority of papers concentrate on the developed countries and only a few papers focus on the developing countries.