Does board diversity affect the cost of debt financing? Empirical evidence from Turkey
Yükleniyor...
Dosyalar
Tarih
2023
Dergi Başlığı
Dergi ISSN
Cilt Başlığı
Yayıncı
Emerald Publishing
Erişim Hakkı
info:eu-repo/semantics/openAccess
Özet
Purpose – This study aims to investigate the effects of board characteristics on the cost of debt for nonfinancial 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.
Açıklama
Anahtar Kelimeler
Board Composition, Borsa Istanbul, Chairwomen, Cost of Debt, Gender Diversity
Kaynak
Gender in Management
WoS Q Değeri
Q3
Scopus Q Değeri
Q1
Cilt
Sayı
Künye
Aksoy, M. ve Yılmaz, M. K. (2023). Does board diversity affect the cost of debt financing? Empirical evidence from Turkey. Gender in Management. http://doi.org/10.1108/GM-01-2022-0021
