Gender diversity on the board of directors and leverage
DOI:
https://doi.org/10.51302/rtss.2022.4075Keywords:
gender diversity, board of directors, leverage, agency theory, listed companies, panel data, Spanish marketAbstract
Since the middle of the 20th century, the global labour market has been experiencing great changes regarding the diversity of its workforce. Gender diversity on boards of directors has been one of the most debated issues. Although the presence of women in management positions has traditionally been justified from an ethical perspective, recent research shows how gender diversity influences decision-making in companies and its economic and social effects. This circumstance is relevant in the case of listed companies, as a consequence of the obligation of transparency that they have in the development of their activity. Based on the different Spanish Good Governance Codes, which recommend the presence of women on boards of directors, this paper analyses how gender diversity influences the firm financial decisions. A simple of Spanish listed firm on the IBEX 35 index for the 2013-2018 period is used. Results show that gender diversity on Spanish boards of directors reduces agency costs and negatively influences the level of firm leverage.
Supporting Agencies
Esta investigación ha sido financiada por el Proyecto RTI2018-093884-B-I00 del Ministerio de Ciencia, Innovación y Universidades (Gobierno de España). Los autores agradecen el apoyo de la Fundación CajaMurcia
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