The Impact of Board Gender Composition on Dividend Payouts
51 Pages Posted: 10 Oct 2016 Last revised: 13 Apr 2017
Date Written: October 1, 2016
This paper investigates whether female independent directors are more likely to impose high dividend payouts. We find evidence that firms with a larger fraction of female directors on their board have greater dividend payouts. This finding is robust to alternative econometric specifications, and alternative measures of dividend payouts. The positive effect of gender composition on dividends remains when we employ propensity score matching and the instrumental variable approach to address potential endogeneity concerns. Furthermore, we find that board gender composition significantly increases dividends only for firms with weak governance, suggesting that female directors use dividend payouts as a governance device.
Keywords: Gender Composition, Board of Directors, Dividend Payout, Corporate Governance
JEL Classification: G30, G35, J16
Suggested Citation: Suggested Citation