Abstract
The relationship between board characteristics and state ownership on dividend policy has been carefully examined in the literature in developed and emerging markets. This paper would seem to be the first to analyse the impacts of board gender diversity and state ownership in the Vietnam market for the following: (1) the number of female directors on the boards of directors is about 25%, which is the highest among South-East Asian countries; and (2) Vietnam has not fully transformed into a market economy, so the state ownership in the listed firm is apparent. Therefore, it is worth trying to examine the impacts of board gender diversity and state ownership on dividend policy in Vietnam. This paper illustrates that the female CEO and female CEO duality decrease the dividend ratio, while chairwomen tend to use dividend ratio as a tool to manage the company. Moreover, Boards of Directors (BODs) with more than three female members usually decrease the dividend payout ratio. The empirical findings are consistent with agency theory, as managers increase payouts to reduce free cash flow and agency costs in firms. The results also indicate that there is an inverse relationship between state ownership and the dividend payout ratio. It is due to higher state ownership allows firms to access external debts easily, so these firms pay high dividends to reduce agency costs. Moreover, governments perceive dividends from holding capital in listed firms as a source of revenue for the state budget. Therefore, firms with higher state ownership are more likely to increase dividend payouts.
Highlights
Various gender diversity studies have focused on the effects of having a female CEO or female board member on firm performance (Ahern and Dittmar, 2012; Dezsö and Ross, 2012; Matsa and Miller, 2013), as well as risk-taking behaviour (Faccio et al, 2016)
Shaukat et al (2016) argue that female directors concentrate on corporate social responsibility, Miller and Triana (2009) find that female executives invest more in research and development programs, while Faccio et al (2016) note that female executives take fewer debts and make less risky financial decisions
The empirical results showed that the female CEO and CEO chairwoman decrease the dividend ratio, while chairwomen tend to use the dividend ratio as a tool in managing companies effectively
Summary
Various gender diversity studies have focused on the effects of having a female CEO or female board member on firm performance (Ahern and Dittmar, 2012; Dezsö and Ross, 2012; Matsa and Miller, 2013), as well as risk-taking behaviour (Faccio et al, 2016). The relationship between having a female director and the stock dividend yield has been intensively examined in the finance industry. Chen et al (2017) examined data from 1691 companies in the USA between 1997-2001, and the results showed that the dividend yield increases with the number of female executives. Ye et al (2019) use linear regression models for data from 8876 companies in 22 countries between 2000-2013 to conclude that a significant relationship exists between gender diversity and higher stock dividend yields The relationship between having a female director and the stock dividend yield has been intensively examined in the finance industry. Chen et al (2017) examined data from 1691 companies in the USA between 1997-2001, and the results showed that the dividend yield increases with the number of female executives. Ye et al (2019) use linear regression models for data from 8876 companies in 22 countries between 2000-2013 to conclude that a significant relationship exists between gender diversity and higher stock dividend yields
Sign-in/Register to view highlights & summary Sign-in/Register to access full text options 
Free) 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a call
