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Female directors on the board and cost of debt: evidence from Australia

Female directors on the board and cost of debt: evidence from Australia We examine whether the presence of female board members has any impact on the cost of debt among Australian listed companies. We find that female presence on the board is negatively associated with the cost of debt. Most importantly, our findings support the argument of critical mass theory that a certain threshold of gender balance is required for enhancing board effectiveness. Our results are valid irrespective of alternate model specifications and endogeneity issues. Overall, the results provide support to the ASX Corporate Governance Principles and Recommendation for the appointment of female directors on corporate boards. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Accounting & Finance Wiley

Female directors on the board and cost of debt: evidence from Australia

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References (76)

Publisher
Wiley
Copyright
Accounting and Finance © 2020 AFAANZ
ISSN
0810-5391
eISSN
1467-629X
DOI
10.1111/acfi.12521
Publisher site
See Article on Publisher Site

Abstract

We examine whether the presence of female board members has any impact on the cost of debt among Australian listed companies. We find that female presence on the board is negatively associated with the cost of debt. Most importantly, our findings support the argument of critical mass theory that a certain threshold of gender balance is required for enhancing board effectiveness. Our results are valid irrespective of alternate model specifications and endogeneity issues. Overall, the results provide support to the ASX Corporate Governance Principles and Recommendation for the appointment of female directors on corporate boards.

Journal

Accounting & FinanceWiley

Published: Dec 1, 2020

Keywords: ; ; ; ;

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