Female directors are more focused on participating in monitoring (Adams & Ferreira, 2009), are more sensitive to difficult issues (Gul et al., 2011), and are more likely to follow the rules and regulations than men (Bernardi & Arnold, 1997). women directors are hardworking and competent (Ittonen, Miettinen, & Vähämaa, 2010), and have better meeting attendance record (Adams & Ferreira, 2009).

1. Board gender diversity attributes on dividend
announcement

2. • Female directors are more focused on participating in monitoring (Adams & Ferreira,
2009), are more sensitive to difficult issues (Gul et al., 2011), and are more likely to
follow the rules and regulations than men (Bernardi & Arnold, 1997). women
directors are hardworking and competent (Ittonen, Miettinen, & Vähämaa, 2010),
and have better meeting attendance record (Adams & Ferreira, 2009).
• These capabilities will make female directors to mitigate agency problem by
increasing the efficiency of the governance mechanism and protect the interest of
the shareholder by declaring more dividends. Some previous evidence (Harjoto et al.,
2014; Wellalage et al., 2012; Ye et al., 2010; Van Pelt, 2013; Knyazeva et al., 2009)
also supports this article.
Introduction

3. Research Question Research Objective
• Does gender diversity affect
dividend announcement on
Pakistan firms?
• Whether the education of
female directors has any
effects on dividend
announcement in Pakistani
firms?
• Whether the experience of
female director's has any
effects on dividend
announcement in Pakistan?
• To examine the relationship
gender diversity and dividend
announcement in Pakistan.
• To examine the relationship
between education of female
directors and dividend
• announcement in Pakistani
firms.
• To analyze the relationship
between experience of female
directors and dividend
announcement in the Pakistan.

4. • The study aid with legislators on the issue of board gender diversity. It is
important for policymakers to take effective steps for creating a gender balance
in the boardrooms and put more women on board for effective and better
decision-making. This allow investors to start new businesses, which in turn
helps women to work and prove their abilities and make it possible to reach
higher positions in the management rankings. this paper could help women to
break old networks and gain top management positions in the organizations.
• This study might be helpful for investor to identify that appointment of women
on board will increase the diversity of board member, especially when the
women increase or maintain the board independency, innovation and good
governance, which can increase the chances of dividend.
Implication of study;

5. Female directors on board:
Efficiency and effectiveness of firms improve because of women on boards, as
hardworking skills and nature of women enhance the productivity of firms. Such abilities
and skills of women mostly result in taking actions, which are important for handling
agency issues or management problems within the firm (Harjoto et al., 2014).
Education of female director:
According to (Bhagat et al., 2010) found that high educations are considered as a good
proxy for knowledge and high levels of intellectual ability. As a result, if the board
members have higher education, they have a significant effect on the management and
decision making of the company.
Experience of female directors:
Without experience, decision-making is incomplete (Cyert & March, 1963). With the
presence of experienced directors, new possibilities are more likely to be explored
because of the understanding of the directors and the linking of board decisions.
Literature Review

6. Dependent Variable:
Dividend announcement is measured by a dummy variable, if firms pay a dividend is
1, otherwise it will be 0.
Independent Variable:
Our independent variable is percentage of female director which is calculated by
number of female directors on board divided by board size. Experience of female
members ranged from below 5 years take as 0, (5-10) 2, (10-15) 3, above 20 years
use 4 and if women are present more than one then we will take an average of these
directors experience. Education of female directors in the board ranged such as if
she holds under graduation degree use 1, bachelor degree 2, master degree 3 and
having any professional degree use four and if women are present more than one
then we will take an average of these directors education.

7. Method of Analysis
• Panel estimation technique will be required to calculate the impact of women
directors on board, education diversity and experience diversity on dividend
announcement. Panel data is using to assists in examining the cross-sectional as
well as time-series data.
• Logit model is use because the nature of dependent variable is dichotomous (i.e.
binary outcome or zero, 1). Dividend announcement is measured by a dummy
variable that takes value 1 if companies pay dividend and 0 otherwise.
• Software use in this study for statistical analysis and correlation matrix is stata.
However, Hausman, (1978) test will be used to determine which of these two
models (i.e. fixed effect and random effect) would be more appropriate.
P-Div = 𝛽0 + 𝛽1POWit + 𝛽2 EDUit + 𝛽3 EXPit + 𝛽4 BMit + 𝛽5 BSit + 𝛽6 OCit + 𝛽7 EPSit
+β8 FSit +β9 FCit + ε..

8. • The mean value of POW is .059, which shows the percentage of female directors
on board is considered low.
• The experience of female directors have average experience (less than 11 years).
Furthermore, the mean value of female director’s education on board is 1.096,
which shows that female directors of non-financial firms have an average
education (i.e. average education of board directors is graduation).
• The average value of board size is 9.173, with a maximum value of 20 and
minimum value is 6 which show small board in Pakistan context.
• Board meeting frequency represents an average of 5.876 meeting annually, this
indicates that firms have complied with the code.
• The mean value of firm size is 17.98, which means that if the maturity of firms
increase with their size there is a problem of less investment opportunity and
firms will announce the dividend.
• The mean value of EPS is 29.77, which shows that how much earnings of
company will return to its shareholders in the form of dividends.
• While, 83% of the sample shows that female director has taken a job because of
their specific skills.
• In addition, the table showed that 87% of the sample with a maximum value of 1
and minimum value of zero indicated that firm’s strategy was to distribute profit
in the form of dividend and satisfy the need of shareholders.

9. • Table 2 describes the correlation matrix between study variable. From the table (3)
we can observe that there are positive relationship between women on board and
their education and experience in the family firms with dividend announcement.
This indicates that women directors with their diverse experience and education
induce the firms to pay more profits in form of dividend. While Board size, Board
Meeting, firm size and owner concentration have a negative correlation with
dividend. Earnings per share have a positive association with dividend
announcement at 5% significant level. This means that higher in earnings per
share will increase the chances of dividend announcement.
• The relationships between regressors are weak, which indicates that there is no
multicollinearity between predicted variable. The result ​​shows that the regression
variance inflation factor (VIF) is within the tolerance range, i.e., below 5, which
also confirms this indicator.
• Hausman test is used to determine the appropriate model between fixed effect
and random effect on this study, the result tells that p-value is greater than 0.05.
Hereafter, a random model was use to explain the relationship between these
variables.

10. • Table 3 shows that the trend of women paying dividends through the boardroom has
an insignificant effect, that means the presence of female directors on boardroom will
reduce the probability to announce dividend and it might be because of some
companies includes female directors as a symbol in order to present a picture of
diversity or maybe this is due to the low number of women on the boards.
• The experience of female directors on board has no effect on dividend announcement,
this means the experience of female director’s on the board will decrease the chances
to announce dividend. Therefore, women directors were more likely have a significant
experience as board members in small companies, but have little experience in the
positions of Chief Executive Officer (CEO) or Chief Operating Officer (COO).
• The education of female directors on board has an insignificant effect on dividend
announcement; this means the education of female director’s on the board will
decrease the chances to announce dividend. . Regarding the education background, the
ratio of female board directors has an average education (i.e. graduation). Even though
board members have accounting skills, it has a profound effect on decision making and
company oversight.

11. • Family connection (Non-owned family) firms have insignificant relationship with
dividend announcement. These results show that the women on the board have
acquired directorship because of family connections rather than their core
characteristics, which reduces the chances of dividend announcement. This is
evident from Abdullah (2016) and Amrin Ital (2014) that about 40% of female
directors have family ties with other board members.
• Ownership concentration had insignificant relationship with dividend
announcement, this shows that firms with high ownership concentration have low
chances to announce dividend.
• The presence of women in board meeting had insignificant (0.175) effect on
dividend announcement, this result shows that the greater involvement of women
in boardroom improve the behavior of male directors in meeting that would
decrease the chances of dividend announcement.

12. Limitation:
Despite the insignificant results, this study has some limitation.
• First of all, this study was based on a sample of Pakistan, which limited the
generalizability of our results to other contexts. A common extension of this work is to
study this relationship with other Asian emerging economies.
• Secondly, to determine the relationship between board gender diversity and dividend
announcement, we used firm-level variables as a control variable and this study only
focus on non-financial firms.
Future Direction:
• Future research will be interested in examining other factors, such as foreign
ownership, advanced gender diversity, and how women on board appointments
moderate the relationship between gender diversity and dividend announcement.
Finally, Pakistan is one of the first emerging countries which recently approved
commandment in July 2017 to appoint women to the corporate board besides India
and Malaysia. Therefore, it will be interesting to know that for countries where the
gender ratio is productive, institutional improvement is very low such as in Pakistan.
The Literature will assist in the investigation of this relationship in the post-quota
period.