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Gender diversity in the boards and the pricing of publicly traded corporate debt: evidence from Japan

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  • Takanori Tanaka

Abstract

This article explores the impact of gender-diverse boards on the cost of publicly traded corporate debt. Using a sample of Japanese corporate bond issues, we find that firms with female outside directors enjoy lower cost of corporate public debt after controlling for corporate governance, bond and firm characteristics. In addition, the results using matching methods also show that the cost of corporate public debt is lower for firms with female outside directors. Overall, these findings indicate the importance of gender-diverse boards in corporate bond markets.

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  • Takanori Tanaka, 2014. "Gender diversity in the boards and the pricing of publicly traded corporate debt: evidence from Japan," Applied Financial Economics, Taylor & Francis Journals, vol. 24(4), pages 247-258, February.
    • Handle: RePEc:taf:apfiec:v:24:y:2014:i:4:p:247-258
    DOI: 10.1080/09603107.2013.877571
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    3. Farzan Yahya & Ghulam Abbas & Ammar Ahmed & Muhammad Sadiq Hashmi, 2020. "Restrictive and Supportive Mechanisms for Female Directors’ Risk-Averse Behavior: Evidence From South Asian Health Care Industry," SAGE Open, , vol. 10(4), pages 21582440209, October.
    4. Amanpreet Kaur & Balwinder Singh, 2015. "Does Gender Diversity on Indian Boards Impede IPO Underpricing?," Management and Labour Studies, XLRI Jamshedpur, School of Business Management & Human Resources, vol. 40(1-2), pages 194-205, February.
    5. Rakesh Pandey & Pallab Kumar Biswas & Muhammad Jahangir Ali & Mansi Mansi, 2020. "Female directors on the board and cost of debt: evidence from Australia," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 60(4), pages 4031-4060, December.
    6. Skylar Powell, K. & Takahashi, Hidenori & Lim, Eunah, 2022. "Experienced ‘misfits’: Multinationality alignment, international experience, and adjustments to multinationality," Journal of Business Research, Elsevier, vol. 151(C), pages 56-69.
    7. Elnahass, Marwa & Alharbi, Rana & Mohamed, Toka S. & McLaren, Josie, 2024. "Women directors’ attributes and demographics: New insights into bank risk," Research in International Business and Finance, Elsevier, vol. 71(C).
    8. Karavitis, Panagiotis & Kokas, Sotirios & Tsoukas, Serafeim, 2021. "Gender board diversity and the cost of bank loans," Journal of Corporate Finance, Elsevier, vol. 71(C).
    9. Gjergji, Rafaela & Vena, Luigi & Campopiano, Giovanna & Sciascia, Salvatore & Cortesi, Alessandro, 2024. "Strategy disclosure and cost of capital: The key role of women directors for family firms," Journal of Family Business Strategy, Elsevier, vol. 15(2).
    10. Jidong Zhang & Jing Han & Meiqun Yin, 2018. "A female style in corporate social responsibility? Evidence from charitable donations," International Journal of Disclosure and Governance, Palgrave Macmillan, vol. 15(3), pages 185-196, August.

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