Does board diversity affect the cost of debt financing? Empirical evidence from Turkey
Bibliographic Data
| ID | 12920558 |
|---|---|
| Authors | Mine Aksoy (0000-0002-4773-1770, Yalova University, corresponding author), Mustafa K Yilmaz (0000-0001-6036-0559, Ibn Haldun University) |
| Year | 2023 |
| Volume | 38 |
| Issue | 4 |
| Pages | 504-524 |
| Publication date | 2023-01-12 |
| Open Access | Yes |
| Type | ARTICLE |
| Venue | Gender in Management An International Journal (JOURNAL) |
| Journal identifiers | ISSN: 1754-2413 • E-ISSN: 1754-2421 |
| Publisher | Emerald Publishing Limited (PUBLISHER • GB) |
| DOI | 10.1108/gm-01-2022-0021 |
| OpenAlex | W4315705102 |
| Language | EN |
| References cited | 63 |
Purpose This study aims to investigate the effects of board characteristics on the cost of debt for non-financial companies in the Turkish capital markets. Design/methodology/approach Using a sample of 211 non-financial companies listed on Borsa Istanbul, this study examines how chairperson gender and board characteristics affect the cost of debt by using panel data analysis over the period of 2016–2020. A system generalized method of moments model is also applied to test the endogeneity issue. Findings The findings show that the presence of female chairperson and female directors on board reduces the cost of debt and the perceptions of default risk by fund providers, while board independence and board size do not have a significant impact on the cost of debt. The results provide insightful information for companies and policymakers. Companies can alter board composition through gender diversity, while policymakers can introduce new policies in encouraging the presence of female directors on boards. Originality/value This study primarily enriches the literature on the effect of board diversity on debt financing cost in a leading emerging market, enabling companies in emerging markets to better mitigate agency costs and finance their investment through effective board composition. Second, it provides evidence that financial institutions consider companies with chairwomen and women directors on the boards less risky and charge them less for debt financing than they do for companies with man chairperson. Finally, the results support policymakers to take actions to increase female presence on board
Agency cost · Business · Capital market · Corporate governance · Cost of capital · Debt · Debt ratio · Economics · Emerging markets · Endogeneity · Gender diversity · Panel data · Revenue · Corporate Finance and Governance · Gender Diversity and Inequality · Working Capital and Financial Performance · Accounting · Finance
Women in the boardroom and their impact on governance and performance☆
Robust Tests for the Equality of Variances
Endogeneity and the dynamics of internal corporate governance
Female Directors and Earnings Quality
Unequally Spaced Panel Data Regressions With Ar(1) Disturbances
CEO gender, corporate risk-taking, and the efficiency of capital allocation
How to do Xtabond2
General Diagnostic Tests for Cross Section Dependence in Panels
Initial conditions and moment restrictions in dynamic panel data models
The Impact of Board Diversity and Gender Composition on Corporate Social Responsibility and Firm Reputation
Consistent Covariance Matrix Estimation with Spatially Dependent Panel Data
Boards of directors
Gender diversity on corporate boards
Gender differences in risk behaviour in financial decision-making
| Highly cited | No |
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