MACN. Shafana and Sithy Safeena M.G.H
The study intended to examine the board characteristics of non-financial companies in Sri Lanka and its impact on dividend payment to realize whether the findings are support to mitigate the agency problem between managers and shareholders. In the sample of 80 listed companies and annual data from 2015 to 2019, fixed effect panel regression revealed that board independence and CEO duality and moderating variables namely profitability and previous year’sdividend payment were significant positive impact on current dividend payment of non-financial companies while board size, board meeting and firm size were not significant impact. The study concluded when the board has independent directors at least two or one third of total directors and separate leadership style, non- financial companies in Sri Lanka increase dividend payment with increase of profitability and previous year’s dividend payment or vice versa. The findings consistent with agency theory since the findings support to align the conflict of interest between shareholders and managers. Furthermore, the findings confirm that nonfinancial companies in Sri Lanka follow the code of best practice on corporate governance – 2013.