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Does board gender diversity influence dividend policy? Evidence from France

Author

Listed:
  • Pornsit Jiraporn

    (Penn State - Pennsylvania State University - Penn State System)

  • Mondher Bouattour

    (CERIIM - Centre de Recherche en Intelligence et Innovation Managériales - Excelia Group | La Rochelle Business School, LGCO - Laboratoire Gouvernance et Contrôle Organisationnel - UT3 - Université Toulouse III - Paul Sabatier - UT - Université de Toulouse)

  • Amal Hamrouni

    (CEREGE [Poitiers, La Rochelle] - Centre de recherche en gestion [EA 1722] - IAE Poitiers - Institut d'Administration des Entreprises (IAE) - Poitiers - UP - Université de Poitiers = University of Poitiers - UP - Université de Poitiers = University of Poitiers - ULR - La Rochelle Université)

  • Ali Uyar

    (CERIIM - Centre de Recherche en Intelligence et Innovation Managériales - Excelia Group | La Rochelle Business School)

Abstract

Prior research shows that board gender diversity helps improve board quality and effectiveness. Using a sample of French companies, we find that board gender diversity leads to a stronger probability for firm to pay dividends as well as to larger dividends. Our results are consistent with the notion that female directors improve the monitoring function of the board, thereby forcing managers to disgorge more cash out in the form of larger dividends. The free cash flow problem is mitigated as larger dividends reduce the free cash flow left inside the firm that could be exploited by opportunistic managers.

Suggested Citation

  • Pornsit Jiraporn & Mondher Bouattour & Amal Hamrouni & Ali Uyar, 2019. "Does board gender diversity influence dividend policy? Evidence from France," Post-Print hal-04754236, HAL.
    • Handle: RePEc:hal:journl:hal-04754236
    Note: View the original document on HAL open archive server: https://hal.science/hal-04754236v1
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    References listed on IDEAS

    as
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