Does board diversity affect the cost of debt financing? Empirical evidence from Turkey
Yazarlar (2)
Prof. Dr. Mine AKSOY KAVALCI Yalova Üniversitesi, Türkiye
Prof. Dr. Mustafa Kemal Yilmaz İbn Haldun Üniversitesi, Türkiye
Makale Türü Özgün Makale (SSCI, AHCI, SCI, SCI-Exp dergilerinde yayınlanan tam makale)
Dergi Adı Gender in Management (Q1)
Dergi ISSN 1754-2413 Dergi Bilgileri (2023)
Dergi Tarandığı Indeksler SSCI
Makale Dili İngilizce Basım Tarihi 04-2023
Kabul Tarihi – Yayınlanma Tarihi 16-01-2023
Cilt / Sayı / Sayfa 38 / 4 / 504–524 DOI 10.1108/GM-01-2022-0021
Makale Linki http://dx.doi.org/10.1108/gm-01-2022-0021
UAK Araştırma Alanları
Finansal Piyasalar ve Kurumlar
Özet

Purpose
This study aims to investigate the effects of board characteristics on the cost of debt for non-financial 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.
Anahtar Kelimeler
Board composition | Borsa Istanbul | Chairwomen | Cost of debt | Gender diversity
BM Sürdürülebilir Kalkınma Amaçları
Atıf Sayıları
Web of Science 23
Scopus 29
Does board diversity affect the cost of debt financing? Empirical evidence from Turkey

Paylaş

İletişim
  • Yalova Üniversitesi Rektörlüğü, Bahçelievler Mah. Çınarcık Yolu Caddesi No: 26 Merkez - YALOVA, 77200
  • unis@yalova.edu.tr 0226 815 50 00
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