The impact of corporate board attributes on company’s dividend pay-out policy unpleasant. Concentrating, whether financial leverage mediates between corporate board attributes on the relationship of company's dividend pay-out policy is vital for the subsequent reason. Additionally, intervening relationship of ownership structure between board attribute and dividend pay-out policy is not ignored (Harada & Nguyen, 2011). Importance of dividend pay-out policy may not ignored in an increase of investment opportunities (Benlemlih, 2019). The effectiveness of corporate board attributes on financial leverage (Jiraporn & Kim, 2011) and the relationship with dividend pay-out (Abor & Bokpin, 2010) is very important. The existing works emphases mostly on examining the aspects of pay-out policy highlighting the reasons why managers pay dividends (Ghasemi & Keivani, 2013). Most influential body in decision making is corporate board, almost 60% of Malaysian firms belongs to families and furthermost of the board of directors belong to families they influence in financial decision making. Malaysia ranks top 7th in family owned business world Credit Suisse Research Institute (CSRI).

This is the case because low investment opportunities can distort the efficient allocation of internal funds and destroy firm value. Corporate board are most influential body of management in corporate firms and authorised for financial decision-making. Announcement of dividend pay-out policy and the role of board attributes and financial leverage in the family-own business is one of the most important research topics in financial management. Main factor is dividend pay-out policy which can easily attract the investor. This study concludes that corporate board attributes impact capital structure and thus, firms may change its payout policy.įirms all over the world want expansion and growth in order to attract investment from investors. This study also shed light on the influence of efficient corporate board attributes on dividend pay-out policy and financial leverage for firm growth. This study offers insights to policy-makers to develop a better corporate governance as well as a guidance to firms in the construction and implementation of their corporate governance policies in relation to financial leverage.

However, financial leverage doesn't mediate the relationship between board size and dividend pay-out policy. Financial leverage also mediates the relationship between number of women on board, CEO-duality and dividend pay-out policy. The findings show that there is a partial mediating effect of financial leverage on the relationship between board members age, board diversity and dividend pay-out policy. A sample of 203 non-financial firms listed on the BURSA Malaysia between 20 were analysed using SmartPLS 3.0.

Therefore, this study aims to examine the mediating effect of financial leverage on the relationship between corporate board attributes and the dividend pay-out policy. The relationship between corporate board attributes and dividend payout is already established yet mediating role of leverage in not been examined in Malaysian market.

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