Female Directors and Dividend Pay-Out: Evidence from Listed Deposit Money Banks in Nigeria

1-Bayero University Kano
School of Continuing Education
Department of Social Science and Administration
Mobile phone: 08036639130
Email: muhdsalisu5537@gmail.Com
2- Bayero University Kano
Faculty Of Management Sciences
Department Of Accounting
Mobile Phone: 08039643788
email: ishaqabuhaidara@gmail.com

Female directors are in most cases independent and better in protecting shareholder’s interests.
Shareholders and potential investors consider dividend payout as beneficial since it is a stream of
income. Hence, any of the board decisions concerning dividend payment is valuable to
shareholders. This study examined the effect of female directors or board gender diversity on
dividend payout of listed Deposit Money Banks (DMBs) in Nigeria. The study use secondary data
from annual reports and accounts of listed DMBs for a period of 10 years (2009 - 2019). The data
was analyzed using Feasible Generalized Least Squares (FGLS) regression analyses. The result
shows that female directorship (board gender diversity) has a positive and significant effect on
dividend pay-out in the listed Nigerian deposit money banks. Consequently, the study concludes
that Board gender diversity is a positive determinant of dividend payout. In other words, the more
number of women in the board the higher would be the dividend paid per share in the listed DMBs
in Nigeria. Therefore, to ensure increased and sustainable dividend payout, the shareholders of
Nigerian DMBs should have a gender diverse board.

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