Özet:

This study aims to examine the effects of board gender diversity and female member composition on agency costs. For this aim, the data of 202 non-financial companies listed in Borsa Istanbul for the period of 2012-2020 were analyzed by panel data analysis method, and the relationship between female presence on the board and the agency cost was tried to be determined. The results indicate that female presence on the board significantly reduces the agency cost and, hence, mitigates the principal-agent conflict. Moreover, consistent with the critical mass theory, it was found that boards with three or more female members have a stronger impact on reducing the agency cost, as compared to fewer female members on the board. The results of the study indicate that female directors are more effective in establishing corporate governance in the firm, solving the agency problem, reducing the agency cost and are in a better position to safeguard the interests of stakeholders. Therefore, it is recommended that the policymakers focus on regulations and programs to increase the female members presence on the boards of firms.

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