Board Gender Composition, Dividend Policy and Cost of Debt: The Implications of CEO Duality (original) (raw)
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Purpose-The current study investigates the effects of several corporate governance characteristics and gender diversity facets on the dividends decision. Moreover, the moderating effect of ESG has been scrutinized on the relationship between board characteristics and gender diversity with dividends decision. Design/methodology/approach-Logistic regression model has been utilized on a sample of 120 EGX listed companies between 2012 and 2019. The non-board data that has been collected from DataStream, the board information has been gathered based on the financial statements and websites of the companies. Findings-The results of the study demonstrated a substantial positive relationship between gender diversity and dividends decision. Additionally, the association between gender diversity and dividend decision is moderated by ESG. Furthermore, the decision to declare a dividend is significantly positively correlated with the board's size, but negatively correlated with the board's independence. Moreover, neither the relationship between board size nor board independence on dividends decision is significantly moderated by ESG. Originality/value-Results hold up well to determine the imperative role of board characteristics and more specifically the gender diversity in dividend decision-making and on ESG. They thus offer compelling evidence in favor of the significance of sustainability in dividends decision.
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Given the mix findings in literature regarding gender diversity and dividend policy, we suspected that capital structure is an intervening variable to moderate the relationship. This paper therefore examines the joint role of board gender diversity and capital structure of a firm; does it improve or weaken dividend policy. The study analyzed 2015 year data from 1,011 unlisted firms from Ghana. Structured questionnaire and published annual reports were used to obtain the required data for the study. The results indicate that the relationship between the interaction term and dividend policy is insignificant, hence capital structure does not moderate the relationship between board gender diversity and dividend policy. Policy makers should not blindly adopt initiative of gender equality from another country; instead they should carefully examine the influence of capital structure and the causality of relation before appointing more or less of females on corporate boards.
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This paper aims to investigate the impact of board gender diversity on dividend policy in the context of Jordanian commercial banks. Using a sample of 13 Jordanian commercial banks listed on Amman Stock Exchange during the period 2005-2014, we find strong and robust evidence indicating that diversified boards tend to pay higher cash dividends to shareholders since women can better address the needs of investors in impatient emerging markets. Moreover, this paper presents the negative moderating effect of both, the government existence in the boardroom and international financial crisis on the relationship between gender diversity and dividend policy indicators. Under such conditions, the diversified boards became more conservative and retained most of the profit and paid fewer dividends because of the risk-averse tendencies of women directors.