Board Gender Diversity and Dividend Policy in Chinese Listed Firms

Qurat Ul Ain, Xianghui Yuan, Hafiz Mustansar Javaid, Jinkai Zhao and Li Xiang

SAGE Open, 2021, vol. 11, issue 1, 2158244021997807

Abstract: This study investigates the relationship between gender diversity on the board and dividend payouts in China using a large sample over the period 2003–2017. Our results provide robust and strong evidence showing that gender diversity on the board is positively associated with cash payments of dividends. The empirical outcomes confirm that gender diversity on the board facilitates corporate governance and subsequently promotes dividend payouts. We demonstrate that gender diversity on the board has the greatest effect when the board has critical mass participation (three or more female directors) compared with only their token participation. However, independent female directors increase dividend payouts, while female executive directors do not have a significant impact. Furthermore, we extend the literature on the relationship between dividend payments and government ownership by providing evidence that gender diversity has a higher impact on dividend payouts for state-owned enterprises than non-state-owned enterprises. After controlling the endogeneity problems, our findings are reliable and robust. JEL classifications : G30, G35

Keywords: board gender diversity; dividend payouts; agency problem; corporate governance; female board directors; government ownership (search for similar items in EconPapers)
Date: 2021
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Citations: View citations in EconPapers (9)

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Persistent link: https://EconPapers.repec.org/RePEc:sae:sagope:v:11:y:2021:i:1:p:2158244021997807

DOI: 10.1177/2158244021997807

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