The Impact of Board Gender Diversity on Capital Structure: Empirical Evidence from Financial or Non-Financial Listed Firms on the Pakistan Stock Exchange

Abstract

The purpose of current study is to investigate the association between Board Gender Diversity (BGD) and Capital Structure (LEV) with moderating role of Firm Size by Pakistan Non- Financial listed companies on Pakistan Stock Exchange. The data is selected for sample of 154 non-financial firms over ten years from 2011-2020 with 1,540 number of observations. A regression model, a panel data analysis technique used in the study. The result determined that “Board Gender Diversity” (BGD) has an insignificant and positive relationship with capital (LEV). The firm size (FS) shows positive and significant association on leverage (LEV), while the interaction role of Firm Size (FS*BGD) has insignificant and negative association in between “Board Gender Diversity” (BGD) and “Capital Structure” (LEV). The only control variable of study is profitability (PROF) and has significant association on leverage but however the impact remains negative.