Abstract:
Purpose - This study examines the relationship between board gender diversity and the cost of equity among publicly traded Brazilian companies. Design/methodology/approach - The sample includes Brazilian firms listed on B3 from 2010 to 2023. This study estimated linear and nonlinear regression models using the two-step generalized method of moments (GMM). It measured gender diversity through board composition metrics and diversity indices, while it calculated the cost of equity using the Fama-French five-factor model. Findings - The results obtained suggest that increased board gender diversity is associated with a lower cost of equity, with a nonlinear effect indicating that progressive diversity improvements yield more significant reductions in capital costs. Originality/value - Thisstudy better provides a comprehension of gender diversity and financial performance in a Latin American emergingmarket, addressing a gap in research predominantly focused on developed economies. It is the first to use the Fama-French five-factor model to explore this relationship in emerging markets.