Board Gender Diversity and Firm Financial Performance: A Quantile Regression Analysis

Purpose This study aims to analyze the relationship between board gender diversity, board compensation and firm financial performance in the developing country, Jordan, whose cultural, economic and institutional context is very different from most previously analyzed countries’ context. Design/methodology/approach Ordinary least squares regression was used to examine the association between board gender diversity, board compensation and firm financial performance in a sample of 510 firm-year observations during the years 2009–2018. Generalized least squares estimation method was used to confirm that the results are robust. Findings The author provides new evidence that board gender diversity does not contribute to firm financial performance. The author also detects that there is a positive relationship between board compensation on firm financial performance. Originality/value This paper examines the under-researched relationship between board gender diversity, board compensation and firm financial performance. In so doing, the author tries to provide new insights into this relationship within the developing context, the case of Jordan that has a different environment from that of advanced markets. To the best of the researcher’s knowledge, this is almost certainly the first research to investigate the impact of board gender diversity and board compensation on firm financial performance in the Jordanian market. This manuscript is expected to be used as a reference by the regulators and policymakers – both in Jordan and other countries with a similar institutional, cultural setting – to provide a deep understanding of the impact of board gender diversity and board compensation on the firm performance.

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The effect of board gender diversity on firm performance: evidence from Turkey

Gender in Management An International Journal ◽

10.1108/gm-10-2015-0088 ◽

2016 ◽

Vol 31 (7) ◽

pp. 434-455 ◽

Cited By ~ 33

Author(s):

Merve Kılıç ◽

Cemil Kuzey

Keyword(s):

Firm Performance ◽

Financial Performance ◽

Empirical Studies ◽

Gender Diversity ◽

Content Type ◽

Return On Equity ◽

Firm Financial Performance ◽

Board Gender Diversity ◽

Return On Sales ◽

The Relationship

Purpose This study aims to include two primary goals. First to determine the board characteristics of listed companies in Turkey and second to investigate the effect of board gender diversity on the performance of these companies. Design/methodology/approach This study uses an instrumental variables regression analysis to investigate the relationship between board gender diversity and firm performance using the data from 2008-2012 of the entities listed on the Borsa Istanbul. Findings The results indicate that the boards of these companies in Turkey are male-dominated. Moreover, this study shows that the inclusion of female directors is positively related to the financial performance of firms, as measured by the return on assets, the return on equity and the return on sales. Originality/value Limited empirical studies have been conducted on the relationship between board gender diversity and firm performance in emerging economies. Therefore, there is still no consensus regarding the link between board gender diversity and firm financial performance based upon the mixed and sometimes contradictory results in prior research. Therefore, this study extends the current literature in the context of Turkey, showing that a female member on the board can enhance the financial performance of a company.

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Gender diversity in the Italian boardroom and firm financial performance

Management Research Review ◽

10.1108/mrr-02-2016-0039 ◽

2017 ◽

Vol 40 (1) ◽

pp. 75-94 ◽

Cited By ~ 27

Author(s):

Niccolò Gordini ◽

Elisa Rancati

Keyword(s):

Financial Performance ◽

Boards Of Directors ◽

Panel Data Analysis ◽

Gender Diversity ◽

Gender Quotas ◽

Content Type ◽

Law System ◽

Firm Financial Performance ◽

Board Gender Diversity ◽

The Right

Purpose This study aims to analyse the relationship between board gender diversity and firm financial performance in Italy, where the recently enforced Law 120/2011 prescribes gender quotas for boards of directors. Design/methodology/approach Panel data analysis was used to examine the gender diversity–firm financial performance relationship in an unbalanced panel of 918 Italian listed companies during the years 2011-2014. Findings Gender diversity, as measured by the percentage of women on a board and by the Blau and the Shannon indices, has a positive and significant effect on Tobin’s Q, while the presence of one or more women on the board per se has an insignificant effect on firm financial performance. Practical implications The results suggest that board gender diversity is not a simple “numbers game”, greater gender diversity may generate economic gains, greater gender diversity does not destroy shareholder value, investors do not penalize companies that increase female representation on their boards and Italian companies should focus their efforts on the right mix of men and women rather than on simply the presence of at least one woman on a board of directors. Originality/value Most articles on this topic use data from countries with a legal system based on common law; this paper analyses Italy, a country with a civil law system. This is almost certainly the first study to examine the effect of board gender diversity on firm financial performance in the Italian market.

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Does corporate governance structure matter for firm financial performance? A system GMM panel analysis for Vietnam

Journal of International Economics and Management ◽

10.38203/jiem.020.1.0001 ◽

2020 ◽

Vol 20 (1) ◽

Author(s):

Pham Duc Anh ◽

Hoang Thi Phuong Anh ◽

◽

Keyword(s):

Corporate Governance ◽

Financial Performance ◽

Stock Exchange ◽

Generalized Method Of Moments ◽

Gender Diversity ◽

Governance Structure ◽

Firm Financial Performance ◽

Method Of Moments Estimator ◽

Board Gender Diversity ◽

The Impact

This paper investigates the impact of governance characteristics on financial performance of companies listed on the Ho Chi Minh Stock Exchange. By employing the system generalized method of moments estimator and a panel dataset covering 152 firms over the period from 2011 to 2016, our results indicate that corporate governance characteristics namely the size of board and block-holder ownership, affect the financial performance of Vietnamese firms. Surprisingly, no statistically significant evidence is found concerning the impact of other characteristics such as board gender diversity, CEO duality and non-executive director representation on firm performance.

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Does Board Gender Diversity Make a Difference? New Evidence from Quantile Regression Analysis

Management international ◽

10.7202/1046565ar ◽

2018 ◽

Vol 20 (2) ◽

pp. 95-106 ◽

Cited By ~ 2

Author(s):

Rey Dang ◽

Duc Khuong Nguyen

Keyword(s):

Firm Performance ◽

Quantile Regression ◽

Gender Diversity ◽

Jel Classification ◽

Performance Measure ◽

Quantile Regression Analysis ◽

Dynamic Perspective ◽

Board Gender Diversity ◽

Measure Of Performance ◽

The Impact

This article examines the link between board gender diversity and firm performance from a dynamic perspective through quantile regression, which allows us to capture the potential impact of female representation at different points of the distributions of the performance measure. Our results from a panel of French listed companies (SBF 120) show that the impact of board gender diversity on firm performance differs across quantiles and depends on the measure of performance under consideration. Typically, board gender diversity affects negatively the Tobin’s Q and positively the return on asset when these variables are high and low, respectively. JEL classification: G30; G34; J16

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