ADHERENCE TO THE 1999 BLUE RIBBON COMMITTEE GUIDELINES AND DIVIDEND PAYOUT POLICY: EVIDENCE FROM KUWAIT

Abstract

The objective of this research is to e����amine the adherence to the ���������������� Blue ����Ribbon Committee ����B����C���� recommendations and its impact on corporate dividends policy in ����Kuwait. These recommendations are deemed guidelines for improving the effectiveness of audit committees of shareholding ����firms. Both descriptive as ����ell as analytical methods have been used to test for such effectiveness. A����short ����questionnaire ����as distributed to �������� listed ����firms in ����Kuwait as ����well as examining published ����financial data of Kuwait firms ����with respect to dividend policies during ������������������������������������. ����Results of the multiple regressions and sensitivity analysis indicated that there is no significant evidence on compliance ����with BRC guidelines ����hen setting dividend policies by ����Kuwaiti firms, thus hardly any effect audit committees have on such policies.