Gender diversity on corporate board and its influence on dividend payouts. An empirical study of FTSE 350 non-financial UK firms from 2010 to 2022

Abstract

This study investigates the relationship between board gender diversity and dividend payouts among 215 non-financial firms listed on the UK FTSE 350 Index from 2010 to 2022. Using the fixed effect model and generalised least squares random effect model (GLS), splitting the sample into high and low independent directors and applying a one-year lagged effect for all independent variables, the results revealed a significantly positive relationship between the presence of female directors and the likelihood of distributing dividends. However, this relationship yields divergent results during the Covid-19 pandemic (2020–2022). This study is the first to examine the relationship between board gender diversity and dividend payouts within non-financial FTSE 350 firms and to provide insight into this relationship during the Covid-19 pandemic. This study focused on all female directors, irrespective of their type of directorship. Moreover, based on Covid-19 sample period, it failed to determine the relationship, highlighting a need for further examination.