재무연구 제 권 호 (2015년 5월)
Asian Review of Financial Research, Vol., No..
pp.649~703
pp.649~703
Does Corporate Board Diversity Affect Corporate Payout Policy?
Soku Byoun Associate Professor of Finance Hankamer School of Business Baylor University
Kiyoung Chang Associate Professor of Finance College of Business University of South Florida Sarasota-Manatee
Young Sang Kim Associate Professor of Finance Haile/US Bank College of Business Northern Kentucky University Highland Heights, KY 41099
We find that firms with gender/racial diversity in their boards are more likely to pay larger dividends than are firms with non-diverse boards. Our results suggest that board diversity has a significant impact on dividend payout policy. The impact of board diversity on dividend payout policy is particularly conspicuous for firms with potentially greater agency problems of free cash flow, suggesting that a diverse board helps to mitigate the free cash flow problem. Our findings are consistent with the argument that board diversity enhances the monitoring function of directors and the shareholder-manager conflict resolution for the benefit of shareholders.
Soku Byoun
Kiyoung Chang
Young Sang Kim
We find that firms with gender/racial diversity in their boards are more likely to pay larger dividends than are firms with non-diverse boards. Our results suggest that board diversity has a significant impact on dividend payout policy. The impact of board diversity on dividend payout policy is particularly conspicuous for firms with potentially greater agency problems of free cash flow, suggesting that a diverse board helps to mitigate the free cash flow problem. Our findings are consistent with the argument that board diversity enhances the monitoring function of directors and the shareholder-manager conflict resolution for the benefit of shareholders.
