Women in a dual board system and dividend policy

Abstract

We investigate whether female presence on firms’ board of commissioners and board of directors is associated with a higher dividend policy. Using panel data on 525 publicly listed firms in Indonesia between 2011 and 2018, we find that the impact of females’ presence on firms’ boards on dividend policy depends on their role as either an executive or a non-executive on the boards. Female directors are negatively associated with cash dividend payments, while female commissioners are positively associated with dividend payments in the case of only family-controlled firms. Our results provide insights into corporate governance practices in a two-tiered board system in a developing country.