Does Board Gender Diversity Influence Firm Debt Maturity?

Abstract

This chapter examines the effect of board gender diversity on corporate debt maturity It analyses a gender-based behavioral dimension for corporate debt maturity choice. The study finds that firms with a larger female representation on the board of directors and managers tend to have a larger proportion of short-maturity debt. The evidence also shows that when a woman holds the position of chair of the board and simultaneously is a shareholder, the chance for issuing a short-term debt is higher. These findings meet the argument that boards with female directors and leaders are more likely to issue short-term debt. This method of financing decision can be considered as a corporate governance device with potential impact on reducing managerial opportunism.