Women on Board and Dividend Pay-out Policy: Evidence from Emerging Market

  • Maria Qureshi FSM, National University of Computer and Emerging Sciences, Lahore, Pakistan
  • Khurram Ali Mubasher Department of Business Administration, Iqra University, Karachi, Pakistan
  • Meer Rujaib Naseem Department of Business Administration, Iqra University, Karachi, Pakistan
Keywords: Dividend payouts, Female director, Board of directors, Business education, Pakistan

Abstract

This research sheds light upon how does the inclusion of female board members effect the dividend payout behavior of a firm in the emerging market like Pakistan.  Our study targets the listed financial and non-financial firms on KSE-100 index from the period of 2011 to 2018.  Empirical results establish the real truth between board composition and dividend. The findings of OLS regression and Tobit regression models reveal that women directors are more inclined towards reinvesting the free cash flow in order to gain profitable opportunities rather than distributing it in the form of dividends, thus supporting a negative relationship between the two variables. The findings of our estimations suggest that board composition does not prompt the dividends but female directors do hold some valuable characteristics that can serve as a source of growth for the firms.  Thus, we argue that board gender diversity is useful for firms or not.  

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Published
2021-12-27
How to Cite
Qureshi, M., Mubasher, K., & Naseem, M. (2021). Women on Board and Dividend Pay-out Policy: Evidence from Emerging Market. Journal of Finance and Accounting Research, 3(2), 17-43. Retrieved from https://ojs.umt.edu.pk/index.php/jfar/article/view/1213
Section
Articles