Purpose—This research paper presents a framework for screening and evaluating the competencies and qualities of the board of directors in South African state-owned companies (SOCs). Design/methodology/approach—This study conducted a systematic literature review to gather primary data which was used to prepare a questionnaire for two rounds of the Delphi process, where data was analysed both qualitatively and quantitatively. Findings—The findings from the study revealed the ideal competencies and qualities of individual directors, the optimal collective competencies of directors, and the most appropriate screening and evaluation methods that could be adopted to benefit SOCs. Originality/value—This paper adds to the limited studies investigating the competencies and qualities of directors in SOCs, as most research is focused on listed private companies. Furthermore, there is currently no framework in South Africa that outlines the process for screening and evaluating the competencies and qualities of directors in South Africa’s SOCs. In an effort to support the South African government screen and evaluate the key competencies and qualities of directors in state-owned companies, this team has developed a theoretically informed framework that can be used to screen potential board members’ abilities and capabilities before they are appointed as well as to evaluate the relevance of existing board members.

No abstract

Objective: To investigate the relationship between corporate governance board characteristics and dividend pay-out (e.g. dividend pay-out ratio). Method: A panel regression analysis was undertaken to investigate the relationship between corporate governance board characteristics and dividend pay-out (e.g. dividend pay-out ratio). Data was collected from a sample of 29 firms in the top-40 of the Johannesburg Stock Exchange (JSE). Data collected spanned for a period of five years from 2013 – 2018 Results: Obtained result demonstrate that there is a significant relationship between board diversity, as measured by ethnicity, the board independence and the dividend pay-out ratio. Originality/Relevance: Previous studies have asserted that corporate governance affects the level of dividends paid out by a firm. What has remained unclear with the previous studies is whether the dividend pay-out is an outcome or a substitute for effective governance.  Theoretical/methodological contributions: The results suggest that there is a strong evidence in favour of the substitution hypothesis, where JSE top 40 boards with a higher degree of independence did not need to use dividends as a tool for monitoring managerial behaviour. The results illustrate evidence supporting the maturity and dividend smoothing theories, and this is observed through the significant relationships established between profitability, previous dividend and the dividend pay-out ratio. Social/management contributions: The main contribution of this study being the establishment of the determinants of dividend pay-out policy in South Africa’s JSE listed companies.