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Board gender diversity and US corporate bonds

Author

Listed:
  • Renee M. Oyotode-Adebile
  • Zubair Ali Raja

Abstract

Purpose - The purpose of this paper is to examine the impact of board gender diversity on bond terms and bondholders’ returns. Design/methodology/approach - The authors perform pooled OLS regression, simultaneous regressions and propensity score matching to a panel data set of bond data for 319 US firms from 2007 to 2014. Findings - The authors find that firms with gender-diverse boards have lower yields, higher ratings, larger issue size and shorter maturity. They also find that bondholders require fewer returns from firms with gender-diverse boards. However, the effect is more pronounced when women, constitutes at least 29.67 percent of the board. Originality/value - This analysis supplements the findings that board gender diversity is essential for bondholders. It shows that bondholders should look at board gender diversity as a criterion to invest because bonds issued by firms with gender-diverse board have less risk. For practitioners, this study shows that more women participation on boards leads to a reduction in borrowing costs.

Suggested Citation

  • Renee M. Oyotode-Adebile & Zubair Ali Raja, 2019. "Board gender diversity and US corporate bonds," International Journal of Managerial Finance, Emerald Group Publishing Limited, vol. 15(5), pages 771-791, May.
    • Handle: RePEc:eme:ijmfpp:ijmf-10-2018-0290
    DOI: 10.1108/IJMF-10-2018-0290
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    Citations

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    Cited by:

    1. Renee Oyotode‐Adebile & Nacasius U. Ujah, 2021. "Is social capital a determinant of board gender diversity?," Journal of Financial Research, Southern Finance Association;Southwestern Finance Association, vol. 44(1), pages 25-52, April.
    2. Cho, Eunho & Okafor, Collins & Ujah, Nacasius & Zhang, Linmei, 2021. "Executives’ gender-diversity, education, and firm’s bankruptcy risk: Evidence from China," Journal of Behavioral and Experimental Finance, Elsevier, vol. 30(C).

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