Determinants of Hydrogen Bond Financing Costs: Gender Balanced Boards & Bond Maturity Type Risk

Abstract

This study examines whether board female representation and bond maturity type risk individually or jointly affect the issuing firms’ hydrogen bonds financing costs. It predicts that corporations with higher female representation on their boards have lower financing costs than issuing organizations with lower female representation. This paper addresses its research issues by examining a sample of 212 corporate and government institutions across 36 countries engaged in the issuing of Hydrogen green bonds, namely callable bonds or maturity bonds. The data is obtained from the Bloomberg database. This study addresses the research concerns mentioned using a variety of statistical estimating techniques, including regression techniques (OLS and Quantile) and propensity score matching tests. The theories considered in the study include masculinity theory, agency theory, and the study's findings. The study results confirm that female representation is a very important determinant of the hydrogen bond financing costs and are robust to testing with different samples, specifications, and explanations. Despite a significant negative relationship between female board representation and financing costs, firms in the lower segment of the bond coupon rate distribution experience a decrease in bond coupon rates with increased female board representation, as compared to the 50th, 75th, and overall average distributions. This suggests that gender diversity may have differential effects depending on the firm's bond financing conditions.