This study departs from existing work on board gender diversity (BGD) and corporate social responsibility (CSR) reporting by analyzing and explaining the mechanism by which gender-diverse boards in politically embedded firms (PEFs) affect firms’ CSR reporting choices in a unique institutional setting of Chinese listed firms from 2010 to 2018. The following main results are obtained. First, having female directors and executives with political connections (PCs) on corporate boards improves the CSR reporting of firms. Firms with PCs have a greater possibility to issue CSR reports than their non-connected counterparts. Second, firms that have both gender diversity and PCs on their boards of directors are more likely to engage in CSR reporting. There is an indication that the presence of PCs on boards can strengthen the effect of female directors on firms’ CSR reporting. Third, the presence of female directors on corporate boards has a stronger relationship with CSR reporting in PEFs than in non-PEFs. The study concludes that both BGD and PCs on corporate boards positively influence the diffusion of CSR-related practices in the Chinese business environment.
This research study aimed to examine the effect of institutional and insider ownership on dividend policy of a firm. Ownership structure play a vital role in explaining firm dividend policy. To investigate the effect of institutional and insider ownership on dividend policy, a random sample of 50 non-financial firms was selected for the period of 2009 to 2013. The study based on panel data so for the selection of appropriate panel data model among pooled OLS, Random effect and Fixed effect, Breusch Pagan LM test, Chow test, and Hausman test were used and random effect model was found best fitted. Results indicated that institutional ownership has positive relationship while insider ownership has negative relationship with dividend payout. Further, inclusion of institutional ownership along with insider ownership has increased the explanatory power of the model by 5.56% which is the incremental effect of the institutional ownership. Moreover, free cash flows and leverage have negative while firm size and market to book value have positive relationship with dividend payout.
PurposeThis study aims to investigate the role of board gender diversity (BGD) in dividend payout decisions of politically embedded firms (PEFs) including government-linked firms (GLFs) and non-GLFs in comparison to non-PEFs from the perspective of an emerging market, China.Design/methodology/approachThe study uses the fixed-effect regression to examine the relationship between BGD and dividend payout decisions of PEFs including GLFs and non-GLFs in comparison to non-PEFs for a sample of Chinese publicly listed firms over the period 2010–2018.FindingsThe paper presents robust evidence that BGD is associated with higher dividend payments in PEFs than non-PEFs. Similarly, female directors on GLFs' boards are more likely to pay higher dividends than non-GLFs. Moreover, findings also reveal that the female directors' impact on dividend payout decisions is more pronounced in high corporate social responsibility (CSR) PEFs compared to low CSR peers, regardless of the nature of political ties.Research limitationsThe major limitation of this research that it is restricted to Chinese firms that operate under distinctive economic, social, and political environments. However, the study findings are generalizable to other emerging economies which have similar institutional settings and corporate environments with high government intervention like China.Practical implicationsThe findings will enable policymakers to design policies targeted at the inclusion of female directors on PEFs' boards to reduce information asymmetry and agency conflicts. However, considering the heterogeneity of female directors' role in dividend payout decisions of GLFs and non-GLFs, the policymakers should be cautious while establishing the female quota in these firms.Originality/valueThe role of BGD in dividend policy decisions of politically connected firms remained unexplored. This study is the first to unveil the role of female directors in dividend payout decisions of PEFs and non- PEFs. In addition, this research further contributes to the literature by exploring the BGD-dividend policy link in PEFs with high- and low-CSR engagements.
scite is a Brooklyn-based organization that helps researchers better discover and understand research articles through Smart Citations–citations that display the context of the citation and describe whether the article provides supporting or contrasting evidence. scite is used by students and researchers from around the world and is funded in part by the National Science Foundation and the National Institute on Drug Abuse of the National Institutes of Health.