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Does board gender diversity influence dividend policy? Evidence from France

Author

Listed:
  • Pornsit Jiraporn

    (Pennsylvania State University, Great Valley School of Graduate Professional Studies)

  • Mondher Bouattour

    (La Rochelle Business School, Excelia Group, CERIIM & LGCO -University of Toulouse, France)

  • Amal Hamrouni

    (La Rochelle Business School_Excelia Group CEREGE (EA1722)_University of Poitiers, France)

  • Ali Uyar

    (La Rochelle Business School, Excelia Group, CERIIM, France)

Abstract

Prior research shows that board gender diversity helps improve board quality and effectiveness. Using a sample of French companies, we find that board gender diversity leads to a stronger probability for firm to pay dividends as well as to larger dividends. Our results are consistent with the notion that female directors improve the monitoring function of the board, thereby forcing managers to disgorge more cash out in the form of larger dividends. The free cash flow problem is mitigated as larger dividends reduce the free cash flow left inside the firm that could be exploited by opportunistic managers.

Suggested Citation

  • Pornsit Jiraporn & Mondher Bouattour & Amal Hamrouni & Ali Uyar, 2019. "Does board gender diversity influence dividend policy? Evidence from France," Economics Bulletin, AccessEcon, vol. 39(4), pages 2942-2954.
    • Handle: RePEc:ebl:ecbull:eb-19-00653
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    File URL: http://www.accessecon.com/Pubs/EB/2019/Volume39/EB-19-V39-I4-P273.pdf
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    References listed on IDEAS

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    1. Ramzi Benkraiem & Amal Hamrouni & Anthony Miloudi & Ali Uyar, 2018. "Access to Finance for French Firms: Do boardroom attributes matter?," Economics Bulletin, AccessEcon, vol. 38(3), pages 1267-1278.
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    Cited by:

    1. Zeineb Ouni & Jamal Ben Mansour & Sana Arfaoui, 2020. "Board/Executive Gender Diversity and Firm Financial Performance in Canada: The Mediating Role of Environmental, Social, and Governance (ESG) Orientation," Sustainability, MDPI, vol. 12(20), pages 1-17, October.
    2. Govindan, Kannan & Kilic, Merve & Uyar, Ali & Karaman, Abdullah S., 2021. "Drivers and value-relevance of CSR performance in the logistics sector: A cross-country firm-level investigation," International Journal of Production Economics, Elsevier, vol. 231(C).

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    More about this item

    Keywords

    board gender diversity; female directors; dividends; dividend policy; corporate governance.;
    All these keywords.

    JEL classification:

    • G3 - Financial Economics - - Corporate Finance and Governance
    • G1 - Financial Economics - - General Financial Markets

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