Cover Image

The board gender composition and cost of debt: empirical evidence from Jordan

The present research aims to examine the influences of board gender composition on debt costs and its significance to Jordanian creditors: mainly banks, using agency and resource dependence theories. A sample of 113 non‐financial Jordanian firms listed on the Amman Stock Exchange (ASE) from 2010 to...

Full description

Saved in:
Bibliographic Details
Main Authors: Mansour, Marwan, Al Zobi, Mo'taz, Saleh, Mohammed W. A., Al‐Nohood, Saddam, Marei, Ahmad
Format: Article
Published: Wiley 2024
Online Access:http://psasir.upm.edu.my/id/eprint/105612/
https://onlinelibrary.wiley.com/doi/10.1002/bsd2.300
Tags: Add Tag
No Tags, Be the first to tag this record!
id my.upm.eprints.105612
record_format eprints
spelling my.upm.eprints.1056122024-05-06T08:00:21Z http://psasir.upm.edu.my/id/eprint/105612/ The board gender composition and cost of debt: empirical evidence from Jordan Mansour, Marwan Al Zobi, Mo'taz Saleh, Mohammed W. A. Al‐Nohood, Saddam Marei, Ahmad The present research aims to examine the influences of board gender composition on debt costs and its significance to Jordanian creditors: mainly banks, using agency and resource dependence theories. A sample of 113 non‐financial Jordanian firms listed on the Amman Stock Exchange (ASE) from 2010 to 2019 was utilised to explore the impact of board gender on the cost of debt financing through panel regression analysis. To tackle endogeneity concerns, we employ a two‐step system generalised method of moments estimator. The findings discovered that more female directors on firm boards generated economic benefits for non‐financial sectors, which achieved an average 0.75% cut‐off interest rate incurred by lenders compared to the counterparts with fewer female directors. Our findings are still robust to endogeneity concerns. The findings offered valuable insights for academics, shareholders, firms, and regulators. Shareholders are required to provide more pressure on firms to enhance gender equality. Firms should adjust board gender composition via the inclusion of more female directors while regulators should develop guidelines, such as a minimum female quota in promoting more females to the board. The finding generalisability is limited to developing markets with similar settings. This study bridged a vital gap in the governance literature on the nexus between board gender composition and debt costs in Jordanian contexts where no minimum gender quota exists. Wiley 2024-03 Article PeerReviewed Mansour, Marwan and Al Zobi, Mo'taz and Saleh, Mohammed W. A. and Al‐Nohood, Saddam and Marei, Ahmad (2024) The board gender composition and cost of debt: empirical evidence from Jordan. Business Strategy and Development, 7 (1). ISSN 2572-3170 https://onlinelibrary.wiley.com/doi/10.1002/bsd2.300 10.1002/bsd2.300
institution Universiti Putra Malaysia
building UPM Library
collection Institutional Repository
continent Asia
country Malaysia
content_provider Universiti Putra Malaysia
content_source UPM Institutional Repository
url_provider http://psasir.upm.edu.my/
description The present research aims to examine the influences of board gender composition on debt costs and its significance to Jordanian creditors: mainly banks, using agency and resource dependence theories. A sample of 113 non‐financial Jordanian firms listed on the Amman Stock Exchange (ASE) from 2010 to 2019 was utilised to explore the impact of board gender on the cost of debt financing through panel regression analysis. To tackle endogeneity concerns, we employ a two‐step system generalised method of moments estimator. The findings discovered that more female directors on firm boards generated economic benefits for non‐financial sectors, which achieved an average 0.75% cut‐off interest rate incurred by lenders compared to the counterparts with fewer female directors. Our findings are still robust to endogeneity concerns. The findings offered valuable insights for academics, shareholders, firms, and regulators. Shareholders are required to provide more pressure on firms to enhance gender equality. Firms should adjust board gender composition via the inclusion of more female directors while regulators should develop guidelines, such as a minimum female quota in promoting more females to the board. The finding generalisability is limited to developing markets with similar settings. This study bridged a vital gap in the governance literature on the nexus between board gender composition and debt costs in Jordanian contexts where no minimum gender quota exists.
format Article
author Mansour, Marwan
Al Zobi, Mo'taz
Saleh, Mohammed W. A.
Al‐Nohood, Saddam
Marei, Ahmad
spellingShingle Mansour, Marwan
Al Zobi, Mo'taz
Saleh, Mohammed W. A.
Al‐Nohood, Saddam
Marei, Ahmad
The board gender composition and cost of debt: empirical evidence from Jordan
author_facet Mansour, Marwan
Al Zobi, Mo'taz
Saleh, Mohammed W. A.
Al‐Nohood, Saddam
Marei, Ahmad
author_sort Mansour, Marwan
title The board gender composition and cost of debt: empirical evidence from Jordan
title_short The board gender composition and cost of debt: empirical evidence from Jordan
title_full The board gender composition and cost of debt: empirical evidence from Jordan
title_fullStr The board gender composition and cost of debt: empirical evidence from Jordan
title_full_unstemmed The board gender composition and cost of debt: empirical evidence from Jordan
title_sort board gender composition and cost of debt: empirical evidence from jordan
publisher Wiley
publishDate 2024
url http://psasir.upm.edu.my/id/eprint/105612/
https://onlinelibrary.wiley.com/doi/10.1002/bsd2.300
_version_ 1800093770428973056
score 13.211869

Similar Items