Board Gender Diversity and Firms Performance: An Evidence from India

Abstract

In the recent past, board gender diversity grabs the attention of many researchers in the field of corporate finance. Prior literature suggests gender diversity in the boardroom significantly improves corporate governance and had a favourable impact on firm’s performance. However, gender diversity in the boardrooms and its linkage with firm’s performance is one of the debatable issues since the findings of empirical evidence are diverse across the countries. The main thrust of this study is to investigate the linkage between gender diversity in the boardroom and firm’s performance. A sample size of top 139 non-financial companies listed in NSE for a time period of five years, i.e., from 2011–12 to 2015–16 is used in this monograph. In order to investigate the linkage between gender diversity in the boardroom and the firm’s performance, the study employed Random-Effect GLS Regression Model as suggested by the Hausman Test. The findings of the study reveals that there lay a positive association between Proportion of Independent Female Directors on the Board and the Firm’s Performance (MVANW) after controlling the variables BOARD SIZE, FIRM SIZE, and Leverage (DER).

Keywords: Board Composition, Board Gender Diversity, Female Directorship, Firm’s Performance, Random-Effect GLS Regression Model, Control Variables, India

View PDF