Board Gender Diversity and Cost of Debt: Do Firm Size and Industry type matter?

Kamil, Rabiatu; Appiah, Kingsley Opoku

doi:10.1108/gm-12-2020-0363

Cited by 13 publications

(30 citation statements)

References 80 publications

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“…Many authors (Jermias, Yigit, 2019, pp. 171-185;Kamil, Appiah, 2021) state that there is a positive relationship between the size of the enterprise itself and the level of its debt in the form of long-term liabilities. The larger the enterprise, the greater its tendency to finance its business activities using external sources of financing.…”

Section: Discussionmentioning

confidence: 99%

The Impact of Firm Size on Corporate Indebtedness: A Case Study of Slovak Enterprises

Gajdosikova

Valášková

2022

Folia Oeconomica Stetinensia

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Research background: Debt is considered a normal part of enterprises these days. If enterprises do not have enough equity, they will start to use a large amount of debt which is mainly associated with indebtedness. Rising indebtedness can be a difficult financial situation for business entities in the form of default and inability to meet their liabilities. Purpose: The main aim of this paper is to perform a debt analysis of enterprises operating in sectors that are considered leading in the conditions of Slovakia, such as the manufacturing and construction sector, and subsequently, to examine whether the size of the enterprise has a significant impact on selected indebtedness ratios. Research methodology: Firstly, the debt analysis was performed using the six selected indebtedness indicators on a sample of 846 enterprises. Secondly, a more detailed analysis, focused on examining the existence of statistically significant differences between individual indebtedness ratios concerning the size of the enterprise, was realized using the non-parametric Kruskal-Wallis test. At the end of the research, the Bonferroni corrections were used to identify where the stochastic dominance occurred. Results: The impact of the enterprise’s size on the calculated indebtedness indicators is confirmed by the results of ANOVA, based on which it can be argued that statistically significant differences between the calculated indebtedness indicators exist between large and small enterprises, as well as an inequality of medians between large and medium-sized enterprises. As a result, the median values of the debt ratios of small and medium-sized enterprises are the same. Novelty: The contribution of this paper is a new feature of the application of debt analysis for the evaluation of corporate performance. There are only a few papers in Slovakia that focus in detail on an analysis of the indebtedness of individual enterprises and with an examination of the determinants that affect this indebtedness, which is, however, an added value of our contribution.

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Section: Discussionmentioning

confidence: 99%

The Impact of Firm Size on Corporate Indebtedness: A Case Study of Slovak Enterprises

Gajdosikova

Valášková

2022

Folia Oeconomica Stetinensia

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“…This study adhered to the recommendations of Kamil and Appiah (2022), Mansour et al (2020), and Pandey et al (2020), by excluding firms in the financial sector with a different regulatory framework, which makes it incomparable. The final sample included 113 non-financial firms (58 industrial and 55 service firms) with complete data for subsequent examination and 1130 firm-year observations.…”

Section: Hypothesis Developmentmentioning

confidence: 99%

“…Lack of BGC in senior management is a concern for policy-makers. Furthermore, the inconclusive findings, which have been attributed to variations in legal, institutional, economic conditions, cultural, and religious contexts (Attah-Boakye et al, 2020;Kamil & Appiah, 2022;Naghavi et al, 2021), demand further scrutiny in our settings.…”

Section: Introductionmentioning

confidence: 96%

The board gender composition and cost of debt: Empirical evidence from Jordan

Mansour,

Al Zobi,

Saleh

et al. 2023

Bus Strat Dev

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The present research aims to examine the influences of board gender composition on debt costs and its significance to Jordanian creditors: mainly banks, using agency and resource dependence theories. A sample of 113 non‐financial Jordanian firms listed on the Amman Stock Exchange (ASE) from 2010 to 2019 was utilised to explore the impact of board gender on the cost of debt financing through panel regression analysis. To tackle endogeneity concerns, we employ a two‐step system generalised method of moments estimator. The findings discovered that more female directors on firm boards generated economic benefits for non‐financial sectors, which achieved an average 0.75% cut‐off interest rate incurred by lenders compared to the counterparts with fewer female directors. Our findings are still robust to endogeneity concerns. The findings offered valuable insights for academics, shareholders, firms, and regulators. Shareholders are required to provide more pressure on firms to enhance gender equality. Firms should adjust board gender composition via the inclusion of more female directors while regulators should develop guidelines, such as a minimum female quota in promoting more females to the board. The finding generalisability is limited to developing markets with similar settings. This study bridged a vital gap in the governance literature on the nexus between board gender composition and debt costs in Jordanian contexts where no minimum gender quota exists.

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“…The second most analyzed topic is the relationship between women’s presence on corporate boards and corporate social responsibility (Biswas et al , 2021; Dang et al , 2021; Mansoor and Ali, 2018). Other studies analyzed the boards’ strategic control (Nielsen and Huse, 2010), corporate sustainability (Galbreath, 2011), corporate governance (Abdullah et al , 2016), efficiency (Ramly et al , 2017), corporate reputation (Inamdar and Nagendra, 2017), corporate environmental actions (Gong et al , 2021), effects on agency costs (Amin et al , 2021), cost of debt (Kamil and Appiah, 2021), adoption of the United Nations Sustainable Development Goals (Cicchiello et al , 2021) and employer attractiveness (Schäpers et al , 2021).…”

Section: Literature Reviewmentioning

confidence: 99%

Women on corporate boards in a predominantly male-dominated society: the case of Peru

Avolio

Pretell

Valcazar

2022

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Purpose This phenomenological study aims to analyze the factors perceived by women to be important to their nomination and selection for board positions in Peruvian public companies. The importance of this study lies in understanding the qualities that are important for women to possess, as perceived by those women who have reached leadership positions, achieving empowerment and economic autonomy. Design/methodology/approach The study population consisted of 33 women who became company directors in 2019, according to the data of the Lima Stock Exchange. From this group, the authors conducted 12 in-depth interviews with those women who accepted to participate in this study. The information was analyzed based on the stages suggested by Moustakas (1994). Findings This study proposes a conceptual framework with 13 factors perceived by women during their nomination and selection for board positions in Latin American public companies, focusing on the case of Peru. The factors are training and learning, professional experience, self-awareness, attitude, resilience, networking, communication skills, empathy, “hard work,” capacity to make important decisions, soft skills, support networks and allies and passion for their work. Originality/value Based on the experiences of the participants, this study identified 13 critical factors for women to achieve leadership positions as board members. From a phenomenological approach, the relevance of said factors is that they have emerged from the point of view of women who live in a patriarchal and collectivistic culture with a high gender gap index.

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Board Gender Diversity and Cost of Debt: Do Firm Size and Industry type matter?

Cited by 13 publications

References 80 publications

The Impact of Firm Size on Corporate Indebtedness: A Case Study of Slovak Enterprises

The Impact of Firm Size on Corporate Indebtedness: A Case Study of Slovak Enterprises

The board gender composition and cost of debt: Empirical evidence from Jordan

Women on corporate boards in a predominantly male-dominated society: the case of Peru

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