How do gender diversity and CEO profile impact dividend policy in banking? Evidence from Islamic and conventional banks

Hicham Sbai, Ines Kahloul and Jocelyn Grira

Journal of Risk Finance, 2024, vol. 25, issue 3, 385-406

Abstract: Purpose - This paper aims to examine the determinants of the dividend distribution policy in a banking setting. Design/methodology/approach - Using a sample of 48 Islamic banks and 94 conventional banks from 15 Islamic countries over a period spanning from 2012 to 2019, we document the effect of board gender diversity, executive director profile and governance mechanisms on dividend payment decisions. We also analyze the moderating effect of Islamic banks on the relationship between gender diversity and dividend policy. Findings - We find new evidence on the role of women directors in determining dividend distribution policy and confirm the risk aversion hypothesis, hence contributing to the ongoing debate on gender diversity literature. Our results show that the moderating role of Islamic banks is effective only for small banks. Practical implications - Our findings have practical implications for shareholders, managers and financial analysts as they suggest rationalizing dividend distribution strategies. Originality/value - Our study contributes to the growing body of knowledge on dividend policy, gender diversity and Islamic banks.

Keywords: Conventional banks; Islamic banks; Dividend policy; Gender diversity; CEO profile; Board of director; Ownership structure; G34; G35; M14; G21 (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:eme:jrfpps:jrf-09-2023-0217

DOI: 10.1108/JRF-09-2023-0217

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