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Governance, Ownership Structure, and Financial Leverage: The Role of Board Gender Diversity in UK Firms

Author

Listed:
  • Dramani Angsoyiri

    (Lincoln International Business School, College of Arts Social Sciences and Humanities, University of Lincoln, Lincoln LN6 7TS, UK)

  • Fadi Alkaraan

    (Lincoln International Business School, University of Lincoln, Lincoln LN6 7TS, UK
    Gulf Financial Center, Gulf University for Science and Technology, Mishref, P.O. Box 7207, Hawally 32093, Kuwait)

  • Judith John

    (Lincoln International Business School, College of Arts Social Sciences and Humanities, University of Lincoln, Lincoln LN6 7TS, UK)

Abstract

This paper aims to investigate the relationship between governance structure, ownership structure, and financial leverage of corporations in the UK, with a special emphasis on the boardroom gender diversity. The study sample includes 484 UK firms from the FTSE All-Share Index for the period (2015–2023), with 4356 firm-year observations. The results show that CEO duality, gender diversity, managerial ownership, institutional ownership, and government shareholding are all positively associated with financial leverage, thus confirming the importance of these governance and ownership characteristics in determining capital structure policies. On the other hand, board size and the proportion of non-executive directors are not found to have a significant impact on financial leverage, which points to some room for improvement in UK board practices. In this regard, the study contributes to the governance-sustainability-finance nexus discussion by focusing on these dimensions in the UK corporate sector. As such, the findings of this study are important in providing policy recommendations for policymakers and corporate leaders and contribute to the ongoing wave of global corporate governance reforms and practical insights into enhancing governance frameworks at the firm level.

Suggested Citation

  • Dramani Angsoyiri & Fadi Alkaraan & Judith John, 2025. "Governance, Ownership Structure, and Financial Leverage: The Role of Board Gender Diversity in UK Firms," JRFM, MDPI, vol. 18(5), pages 1-22, May.
    • Handle: RePEc:gam:jjrfmx:v:18:y:2025:i:5:p:276-:d:1657948
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    References listed on IDEAS

    as
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    3. Oliver Hart & Andrei Shleifer & Robert W. Vishny, 1997. "The Proper Scope of Government: Theory and an Application to Prisons," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 112(4), pages 1127-1161.
    4. Paul Guest, 2009. "The impact of board size on firm performance: evidence from the UK," The European Journal of Finance, Taylor & Francis Journals, vol. 15(4), pages 385-404.
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    6. Laura Mehnaz & Cherrie Yang, 2025. "Women in accounting research: a review of gender diversity, equity and inclusion," Meditari Accountancy Research, Emerald Group Publishing Limited, vol. 33(7), pages 30-59, February.
    Full references (including those not matched with items on IDEAS)

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