The effect of the professional education background of the chairman of the board and executive management on dividend policy in Taiwanese listed companies

This study investigates whether company’s chairman of the board and management’s education background is business or accounting, their decision making will cause the result of company’s dividend policy or not. This study uses logistic and OLS regression method to exam Taiwanese public company from 2007 to 2011. The empirical result shows that when company’s chairman of the board graduates from business school, the company will pay less cash dividend. On the other hand, when more management education background is business or accounting, the company tends not to pay cash dividend. Furthermore, under the situation that chairman of the board is also the CEO of the company, when chairman of the board graduated from business school, the company tends not to pay cash dividend and pay less cash dividend