Unveiling the impact of board gender diversity on credit rating

Purpose This study aims to investigate the relationship between board gender diversity (BGD) and credit ratings, using agency theory, resource dependence theory and critical mass theory as theoretical frameworks. Design/methodology/approach This paper analyses a sample of 1,037 North American compan...

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Detalles Bibliográficos
Autores: Giráldez, Pilar, Samaniego-Medina, Reyes
Tipo de recurso: artículo
Fecha de publicación:2025
País:España
Institución:Universidad Pablo de Olavide (UPO)
Repositorio:RIO. Repositorio Institucional Olavide
Idioma:inglés
OAI Identifier:oai:rio.upo.es:10433/24327
Acceso en línea:https://hdl.handle.net/10433/24327
Access Level:acceso abierto
Palabra clave:Corporate governance
Risk governance
Gender diversity
Credit rating
Critical mass of women
Corporate social responsibility
Descripción
Sumario:Purpose This study aims to investigate the relationship between board gender diversity (BGD) and credit ratings, using agency theory, resource dependence theory and critical mass theory as theoretical frameworks. Design/methodology/approach This paper analyses a sample of 1,037 North American companies from 2008 to 2017. The methodology includes the Arellano–Bond generalized method of moments (GMM), an ordinal extension of the binary logit model and robustness tests to address potential endogeneity and sample selection bias. Findings The results indicate that increasing female representation on boards significantly affects credit ratings. Specifically, each additional female board member increases the likelihood of obtaining a higher credit rating by up to 17.71. This effect is particularly pronounced for firms transitioning to investment-grade ratings, where the impact of female representation is amplified fourfold. These findings highlight the important role of board gender diversity in improving firms’ credit evaluations. Originality/value By examining a crucial period and employing rigorous analytical techniques, this study fills a significant gap in the literature; it offers valuable insights into how BGD affects credit ratings and emphasizes its strategic importance in corporate risk governance.