Boardroom dynamics: the impact of board gender diversity on discretionary dividend policy in US REITs

Abstract

Purpose This study aims to address a notable gap in the existing literature by exploring the relationship between gender diversity and dividend policy within the context of US Real Estate Investment Trusts (REITs). Design/methodology/approach The authors use a substantial data set comprising 1,398 firm-year observations across 209 US REIT companies from 2011 to 2021 to address the research aims. Fixed effects models and generalized least squares regression methods are used in the analysis. Findings The results demonstrate a significant positive association between board gender diversity and higher dividend payouts among US REITs. This relationship holds after controlling for corporate governance and other firm-level factors. The findings have strong implications that the presence of women on REIT boards contributes to a greater propensity for discretionary dividend increases in the USA. Originality/value This research contributes to the literature by empirically examining female directors’ role in influencing US REITs’ dividend policies, an area lacking adequate prior scholarship. The paper also considers the unique regulatory environment of REITs, highlighting the importance of the study for externally financed firms.