nep-cfn New Economics Papers
on Corporate Finance
Issue of 2015‒11‒01
two papers chosen by
Zelia Serrasqueiro
Universidade da Beira Interior

  1. Female directors, key committees, and firm performance By Colin Green; Swarnodeep Homroy

  1. By: Colin Green; Swarnodeep Homroy
    Abstract: There is pressure to increase female representation on corporate boards. A number of studies have found no, or in some cases a negative, effect of female representation on boards and firm performance. We demonstrate robust positive and economically meaningful effects on firm performance of female representation on European boards.<br/>Moreover, while previous work has considered female representation broadly, we focus on membership of committees involved explicitly in firm governance. We demonstrate marked, larger, e¤ects on performance of having female representation on these committees. Finally, we reconcile this evidence with prior US and UK evidence and demonstrate a positive performance impact of female committee memberships. Our evidence is supportive of the expansion of female involvement in corporate governance from a financial performance perspective.
    Keywords: Board of directors, Female director, Diversity, Performance
    JEL: G30 G34 J16
    Date: 2015
  2. By: Thomas Mc Cluskey (Dublin City University)
    Abstract: The findings of studies on US data indicate a statistical relationship between the dividend policy of firms and the tax bracket of their shareholders while studies on UK data concluded that taxation does effect the valuation of dividend income in the UK. However a recent Irish study, based on interviews with Irish stockbrokers and funds managers, appears to contradict the widely held view among academics that taxation effects the valuation of dividend income. This study considers, in the light of that evidence, whether Irish shareholders are indeed indifferent to the differential taxation treatment of dividends and retained profits by examining the impact of a major change in the taxation of capital gains and dividend income in Ireland on 3rd December 1997 after which dividends were and continue to be taxed at more than double the tax rate on capital gains. We conclude that consistent with recent qualitative evidence Irish shareholders appear indifferent to the differential taxation treatment of dividends and retained profits and therefore the notion that a particular company may appeal to a particular clientele of shareholders is not supported in an Irish context.
    Keywords: Ex- Dividend Day Reaction in the Irish Stock Market
    JEL: G30

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