Gender board diversity and the cost of bank loans

Karavitis, Panagiotis; Kokas, Sotirios; Tsoukas, Serafeim

doi:10.1016/j.jcorpfin.2020.101804

Cited by 42 publications

(48 citation statements)

References 82 publications

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“…These conflicting results notwithstanding, there is a growing consensus in the literature suggesting that the size and external business environment of a firm help reduce agency conflicts surrounding debt, implying lower cost of debt (Karjalainen, 2011;Karavitis et al, 2021). Accordingly, we argue that larger firms operating in less capital-intensive industries are more likely to have higher assets turnover and free cash flow compared to smaller firms operating in a more capital-intensive industry.…”

Section: 3mentioning

confidence: 71%

“…suggests that the presence of women directors is inversely related to interest rate (Fields et al, 2012). Pandey et al (2020) and Karavitis et al (2021) study in Australia and the USA, respectively, confirm this, highlighting on the effective monitoring role of female CEOs (Usman et al, 2018a(Usman et al, , 2018bMiah, 2019), gender-diverse boards (Oyotode-Adebile and Raja, 2019) and female directors (Hern andez-Nicol as et al, 2019) on the level of debt.…”

Section: Board Gender Diversity and Cost Of Debtmentioning

confidence: 91%

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

Kamil¹,

Appiah

2021

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Purpose This study aims to investigate the nexus between gender-diverse boards and cost of debt in the developing economies context. Specifically, the authors examine whether firm size moderates the relationship between female board representation and cost of debt, regardless of the industry type. Design/methodology/approach The authors use panel data from 17 non-financial listed Ghanaian firms over the period 2007–2017, ordinary least square, two-stage least square and generalised method of moments estimations to test the hypothesis. Findings The authors find that board gender diversity is positively related to cost of debt. Further evidence suggests the interaction of firm size and board gender diversity displays a negative association with cost of debt. Practical implications The study evidence suggests larger non-manufacturing firms with gender-diverse boards attract lower cost of capital in an environment with lax enforcement of rules and regulations in corporate governance. Social implications Lenders consider the size and industry of firms in pricing debt. This has implications on UN Goal 5, highlighting that shareholders of larger non-manufacturing firms benefit immensely from board gender diversity in the context of debt. Originality/value The authors contribute to the board gender diversity and cost of debt literature by demonstrating that firm size and industry type matter in the developing economies context.

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Section: 3mentioning

confidence: 71%

Section: Board Gender Diversity and Cost Of Debtmentioning

confidence: 91%

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

Kamil¹,

Appiah

2021

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“…The sample selection from Dealscan follows Karavitis et al (2020), who use insights from Lim et al (2014). This is because potential bias might arise if the sample is not selected carefully.…”

Section: Datamentioning

confidence: 99%

“…Karavitis et al (2020) state that it is essential to disentangle banks from nonbanks. Examples of nonbank institutions are mutual funds or insurance companies.…”

mentioning

confidence: 99%

Political sentiment and syndicated loan borrowing costs of multinational enterprises

Karavitis

Kazakis

2022

Journal of International Financial Markets, Institutions and Mo

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“…Other studies, however, suggest that gender diversity does not necessarily imply better performance (Adams and Ferreira (2009), Sila, Gonzalez, andHagendorff (2016), andSchwartz-Ziv (2017)). Recently, Karavitis, Kokas, and Tsoukas (2019) show that board gender diversity lowers corporate loan spreads. Our study relates to these general strands of literature and draws on them in many theoretical and empirical aspects, but it is also the first to pinpoint and analyze all steps in the role of bank credit in the nexus between gender and firm performance.…”

Section: Introductionmentioning

confidence: 99%

Gender, Credit, and Firm Outcomes

Delis¹,

Hasan

Iosifidi³

et al. 2020

J. Financ. Quant. Anal.

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Small and micro-enterprises are usually majority-owned by entrepreneurs. Using a unique sample of loan applications from such firms, we study the role of owners’ gender in bank credit decisions and post-credit-decision firm outcomes. We find that, ceteris paribus, female entrepreneurs are more prudent loan applicants than are males because they are less likely to apply for credit or to default after loan origination. The relatively more aggressive behavior of male applicants pays off, however, in terms of higher average firm performance after loan origination.

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Gender board diversity and the cost of bank loans

Cited by 42 publications

References 82 publications

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

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

Political sentiment and syndicated loan borrowing costs of multinational enterprises

Gender, Credit, and Firm Outcomes

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