Women on Board and Dividend Pay-out Policy: Evidence from Emerging Market
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.
Copyright (c) 2021 Maria Qureshi, Khurram Ali Mubasher, Meer Rujaib Naseem
This work is licensed under a Creative Commons Attribution 4.0 International License.
JFAR follows an open-access publishing policy and full text of all articles is available free, immediately upon acceptance. Articles are published and distributed under the terms of the Creative Commons Attribution 4.0 International License. Thus, work submitted to UMT Journals implies that it is original, unpublished work of the authors; neither published previously nor accepted/under consideration for publication elsewhere. On acceptance of a manuscript for publication, a corresponding author on the behalf of all co-authors of the manuscript will sign and submit a completed Author Consent, Copyright, and Declaration Form.