Corporate Board Gender Diversity and Dividend Decisions: Evidence from India

Abstract

The Indian Companies Act (2013) mandates the appointment of at least one woman director for large publicly listed companies in India in order to increase gender diversity on corporate boards. The study analyzes the relationship between corporate governance mechanisms, board gender diversity, and ownership structure on dividend payout decisions in an emerging economy like India. The study uses data collected for nonfinancial firms listed on NSE (National Stock Exchange) 500 in India from the period 2008 to 2020. Contrary to the evidence from developed economies, the study finds that increased female representation and greater proportion of female independent directors on the board are associated with lower dividend payout decisions in the Indian context. As it stands, the female representation on corporate boards in India is woefully low and appears to be mere tokenism. The study explores the role of regulation in increasing gender diversity on corporate boards and offers insights from an emerging economy where such a regulation is in place.

Citation

Vinjamury, R.S. (2023), "Corporate Board Gender Diversity and Dividend Decisions: Evidence from India", Biswas, R. and Michaelides, M. (Ed.) Contemporary Issues in Financial Economics: Evidence from Emerging Economies (Research in Finance, Vol. 37), Emerald Publishing Limited, Leeds, pp. 1-13. https://doi.org/10.1108/S0196-382120230000037001