Board gender diversity and dividend policy in Australian listed firms: the effect of ownership concentration

Gyapong, Ernest; Ahmed, Ammad; Ntim, Collins G.; Nadeem, Muhammad

doi:10.1007/s10490-019-09672-2

Cited by 88 publications

(78 citation statements)

References 118 publications

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“…Following the approach of Gyapong et al (2019), we conducted a systematic literature review and provide a summary in Table 1. Dividend payout policy of firm explains the level of legal protection of shareholders (La Porta et al 1998).…”

Section: Empirical Literaturementioning

confidence: 99%

“…Academic research has reported mixed results of the impact of board gender diversity on firms. Adjaoud and Ben-Amar (2010) and Gyapong et al (2019) explain a positive association among board structure and dividend payments. Other researchers have documented the negative effects of women on boards due to their risk-averse behavior, lower confidence, weak decisions, and less control on boards (Arano et al 2010;Levi et al 2011), which affect firm value.…”

Section: Introductionmentioning

confidence: 98%

“…Corporate boards are responsible for major corporate decisions (Chen et al 2017), and the effectiveness of such decisions is dependent on the characteristics of the board. Prior literature largely focuses on how board characteristics are related to corporate productivity (Hu et al 2010;Van Essen et al 2012), but gives little guideline on how these characteristics effect the significant strategic decision of dividend policy, as it is a major issue that corporate boards face (McGuinness et al 2015;Gyapong et al 2019). In perfect markets dividend policy is irrelevant (Miller and Modigliani 1961), but in imperfect markets dividends act as tool to mitigate the imperfections of markets such as agency issues (Dhanani 2005;Jensen 1986) that arise between the insiders (insiders) and outsiders (shareholders).…”

Section: Introductionmentioning

confidence: 99%

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Board-Gender Diversity, Family Ownership, and Dividend Announcement: Evidence from Asian Emerging Economies

Mustafa

Saeed

Awais

et al. 2020

JRFM

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In eras of intense debates on the appointment of women on corporate boards, this research sheds light on the structure of board in Asian emerging economies by examining how women on board of family businesses separately and collectively affect the dividend announcement of business organizations. On the basis of the panel data of four Asian emerging economies—China, Malaysia, Pakistan, and India—for the period 2010–2018, the results from our Tobit regression showed the adverse (negative) and significant impact of women on boards and in family businesses upon dividend announcement. It is important that policymakers should not view firms with one eye. There should be a spillover on board gender diversity from international to domestic levels, and international firms should be set as an example for domestic firms for the inclusion of women on boards. It might be the best time for Asian emerging economies to take productive action for balancing the gender in boardroom settings, and to set a minimum mass of women on boards for better and more effective decision making.

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Section: Empirical Literaturementioning

confidence: 99%

Section: Introductionmentioning

confidence: 98%

Section: Introductionmentioning

confidence: 99%

See 1 more Smart Citation

Board-Gender Diversity, Family Ownership, and Dividend Announcement: Evidence from Asian Emerging Economies

Mustafa

Saeed

Awais

et al. 2020

JRFM

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“…First, a major corporate governance issue currently facing organizations is the requirement to increase female representation on boards. In response, several studies (Adams & Ferreira, ; Campbell & Mínguez‐Vera, ; Gyapong, Ahmed, Ntim, & Nadeem, ; Gyapong et al, ; Liu et al, ; Nadeem, Suleman, & Ahmed, ; Xu, Li, Li, & Liu, ) have investigated the firm value implications of women on boards. Nevertheless, these studies mainly focus on financial returns and ignore the needs of other stakeholders that may be interested in value creation other than financial returns.…”

Section: Introductionmentioning

confidence: 99%

Board gender diversity and environmental, social, and economic value creation: Does family ownership matter?

2019

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Prior literature on firm value creation for stakeholders has oversimplified and narrowed the concept of value down to “economic returns.” Although economic returns are fundamental to a firm's core stakeholders (i.e., shareholders), other legitimate stakeholders want “value” beyond economic returns. We define stakeholder value as the financial and nonfinancial returns a firm can offer to its legitimate stakeholders, and empirically investigate whether board gender diversity (BGD) improves our multidimensional measure of value. Using Thomson Reuters' ASSET4 data for U.K.‐listed firms available from Eikon for the period 2007–2017, we report a significant positive relationship between BGD and stakeholder value creation. In particular, BGD increases social and environmental value creation in addition to economic returns. Furthermore, our results suggest that even though gender‐diverse boards are associated with stakeholder value creation in family firms, this is only conspicuous for environmental value creation. The findings suggest that although female directors cater to the interests of broader stakeholder groups, family ownership causes them to mainly focus on environmental stakeholders. The study provides important implications for regulators, stakeholders, and academic scholars.

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“…Finally, under CMT, it is also argued that having a lone female director could be considered as a "token" and therefore might not have any influence over corporate policy-making (Kanter, 1977). Studies in this line of research conclude that a critical mass (i.e., a specific number of women) should be reached before BGD can have real impacts on corporate decision-making (Gyapong, Ahmed, Ntim, & Nadeem, 2019;Liu et al, 2014;Lucas-Pérez et al, 2015). It follows then that BGD will have stronger impacts on IC disclosure once a specific number of female directors are appointed on Chinese boards.…”

mentioning

confidence: 99%

Does board gender diversity influence voluntary disclosure of intellectual capital in initial public offering prospectuses? Evidence from China

Nadeem

2019

Corporate Governance

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124

113

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Research question/issue Using a multitheoretic view of boards, this study examines the impact of boardroom gender diversity (BGD) on voluntary intellectual capital (IC) disclosure in initial public offering (IPO) prospectuses in China—the world's second‐biggest economy, which is moving from a planned economy to a market‐oriented one. Furthermore, this study also investigates the impact of family ownership on the relationship between BGD and IC disclosure in the Chinese environment, which is characterized by less‐developed corporate governance mechanisms. Research findings/insights Based on a comprehensive content analysis of Chinese IPO prospectuses between 2009 and 2017 and measuring disclosure index at 78 dimensions under six broad categories of IC, the empirical results document (a) a significant positive relation between BGD and IC disclosure—in line with resource dependence theory, (b) a significant negative impact of female independent directors on IC disclosure—opposite to agency theory predictions, and that (c) the BGD–IC disclosure relationship is generally stronger for firms with two or more women on boards—in line with critical mass theory in China. Finally, this study also reveals that family ownership has adverse impacts on the BGD–IC disclosure relationship. These results are robust to a battery of sensitivity analyses. Practitioner/policy implications This study provides positive capital market implications of BGD through enhanced IC disclosure in IPO prospectuses. In doing so, the study has important implications for regulators and top management teams in devising policies concerning female representation on boards and voluntary disclosure of IC to inform the market participants of the true value of the company.

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Board gender diversity and dividend policy in Australian listed firms: the effect of ownership concentration

Cited by 88 publications

References 118 publications

Board-Gender Diversity, Family Ownership, and Dividend Announcement: Evidence from Asian Emerging Economies

Board-Gender Diversity, Family Ownership, and Dividend Announcement: Evidence from Asian Emerging Economies

Board gender diversity and environmental, social, and economic value creation: Does family ownership matter?

Does board gender diversity influence voluntary disclosure of intellectual capital in initial public offering prospectuses? Evidence from China

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