Gender diversity in boardroom and dividend payouts: exploring the moderating role of family businesses in India

Purpose The purpose of this paper is to explore the complex relationship between the board gender diversity (BGD) on dividend payouts (DPs) in India. This study also looks at how family-owned businesses affect this connection, given that many companies in India are family-run. Design/methodology/approach This study uses panel data regression to identify the link between BGD and DPs. The sample comprises 221 companies from the NIFTY 500 Index, spanning 2013–2014 to 2022–2023. To address potential endogeneity, this study relies on instrumental variables with a two-stage least squares methodology. Findings This study finds that having more women on company boards leads to higher dividend payments to shareholders. This study also shows that this effect is even stronger in family-owned businesses. These results remain reliable even after a series of robustness tests. Originality/value This study explores the BGD–DPs link in India, a decade after mandating women directors on Indian corporate boards. The findings of this study support agency and stakeholder theories, highlighting women’s positive board contributions and the need for gender-inclusive policies, thus offering significant implications for theory, policy and practice.