 Female directors, capital structure, and financial distressC. José García and Begoña Herrero Journal of Business Research, 2021, vol. 136, issue C, 592-601 Abstract: The composition of the board of directors is highly relevant to a firm’s capital structure and likelihood of financial distress. This study builds on the complementary proposals of agency theory and gender theories based on gender-differential behavior. We examine whether the gender diversity of the board affects firms’ capital structure (leverage, cost of debt, and debt maturity) and likelihood of bankruptcy. For a sample of European firms over the period 2002 to 2019, we find that the percentage of women directors is the most influential board characteristic in terms of capital structure decisions. This characteristic is negatively related to leverage, cost of debt, and debt maturity. We also find that having a small and independent board with a high ratio of women directors reduces the likelihood of financial distress. However, CEO duality does not have a significant impact on the likelihood of financial distress or capital structure decisions. Keywords: Corporate governance; Gender diversity; Board composition; Bankruptcy; Debt; Cost of debt (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:jbrese:v:136:y:2021:i:c:p:592-601 DOI: 10.1016/j.jbusres.2021.07.061 Access Statistics for this article Journal of Business Research is currently edited by A. G. Woodside More articles in Journal of Business Research from Elsevier |
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