Board gender diversity and debt maturity dispersion

Abstract

This study examines the relationship between board gender diversity and debt maturity dispersion, which measures debt rollover risk. In a sample of 3275 US firms, we find that firms with greater gender diversity on the board have relatively more dispersed debt structures, particularly when a critical mass of three women directors is achieved. We show that the increased debt maturity dispersion associated with the presence of women directors is positively related to subsequent firm performance. We also find that the relationship between gender diversity and debt maturity increases at a diminishing rate with more than three women on the board.