Article
The Moderating Role of Board Skills in the ESG Performance and Dividend Payout Relationship: Evidence from Emerging Markets
Prior research on the link between ESG performance and dividend policies has mainly focused on developed markets, with limited attention to emerging economies such as India. The role of directors’ professional skills in this relationship also remains underexplored. This study examines the impact of ESG performance on dividend payouts, moderated by board background skills, using data from Indian listed companies during 2017-2024 sourced from Refinitiv Eikon. Dividend-to-assets and dividend-to-income ratios are used as payout proxies. Fixed-effect panel regression results show a significant positive association between ESG performance and dividend payouts, indicating that sustainable practices support both shareholder and stakeholder interests. The presence of highly skilled directors further strengthens this relationship. Robustness checks across alternative measures, firm size, sectors, and dividend-paying intensity confirm stability. Findings provide valuable insights for investors, managers, analysts, and policymakers in fostering ESG and governance excellence