Board gender composition, dividend policy and COD: the implications of CEO duality

Purpose: This study aims to examine whether CEO duality affects the association between board gender composition, dividend policy and cost of debt (COD). Design/methodology/approach: The S&P 1500 firms’ data for this study were collected from the Bloomberg professional service terminal for the period 2010-2015. Findings: The results show that board gender composition positively impacts both a firm’s propensity to pay dividends and the level of payouts. However, this positive association is only present in firms with CEO duality. The authors find no significant association between board gender composition and COD, but when the authors split the sample into firms with and without CEO duality, the authors find a negative association in firms without CEO duality. Practical implications: The empirical results highlight important issues for policymakers, managers and investors. The study provides positive feedback on corporate governance rejuvenation efforts that seek to engender and advocate the appointments of female directors to corporate boards. Market participants, such as financial analysts and lenders, could recognize the empirical specifics related to the influence of board gender composition on firms’ dividend policy and COD in the context of CEO duality. Originality/value: This study fills an important gap in the literature on the relationship between board gender composition and its relation with dividend policy and COD.