scholarly journals Gender Diversity and the Firm Financial Performance of DSE Listed Companies in Bangladesh

2020 ◽  
Vol 9 (2) ◽  
pp. 89-96
Author(s):  
Shobnom Munira
Keyword(s):  
Firm Performance ◽  
Financial Performance ◽  
Performance Indicator ◽  
Gender Diversity ◽  
Listed Companies ◽  
Least Square ◽  
Annual Reports ◽  
Board Diversity ◽  
Business World ◽  
Firm Financial Performance

The effect of gender diversity on firm performance is a long debated topic in the business world. The percentage of women representation in the board of directors is comparatively low than women presence in the general population and in the corporate world. Some research suggests board diversity as one of the corporate governance mechanisms that improve firm performance whereas other research suggests the opposite. This study intends to investigate the association between women representation in the boardroom and the companies’ financial performance indicator of Dhaka Stock Exchange (DSE) listed companies in Bangladesh. Total 259 companies’ data from 18 different sectors of DSE are collected from the audited published annual reports. The sample are selected through simple random sampling technique. The data are analyzed using descriptive analysis, correlation analysis and ordinary least square regression method. The study findings indicate that there is positive association between women representation in the boardroom and firm financial performance indicator.

Contextualizing comprehensive board diversity and firm financial performance: Integrating market, management and shareholder’s perspective

2018 ◽  
Vol 24 (5) ◽  
pp. 634-678 ◽  
Author(s):  
Rohail Hassan ◽  
Maran Marimuthu
Keyword(s):  
Firm Performance ◽  
Financial Performance ◽  
Negative Impact ◽  
Panel Data Analysis ◽  
Gender Diversity ◽  
Muslim Women ◽  
Listed Companies ◽  
Corporate Boards ◽  
Board Diversity ◽  
Firm Financial Performance

AbstractThe study investigates demographic diversity, cognitive diversity and internal diversity within Islam among top-level management of firms and their impacts on the financial performance of Malaysian-listed companies. In addition, Muslim and non-Muslim women and Islamic religious diversity on corporate boards are investigated. Even though numerous organisations desire to be socially diverse, the significance of diversity for organisational performance remains uncertain. Are profitable companies inclined to improve board diversity or do other characteristics of the company contribute to firm performance? Does the participation of Muslim and non-Muslim women on corporate boards affect firm performance? Does internal diversity within Islam affect firm performance? Data from 330 Malaysian-listed companies in eleven full fledged sectors were used for the period from 2009 to 2013. This study employed econometrics methodology from panel data analysis to fill the research gap in the current management literature. This study used the interaction approach to examine empirically diverse corporate boards and their impacts on firm performance. This discussion included: (1) a combination of gender diversity and ethnic diversity and (2) a combination of gender diversity and foreign participation. The findings suggest that demographic, cognitive and internal diversity within Islam are significant predictors of a firm’s financial performance. Ethnic women on boards have a significant and negative impact on firm performance. Hence, companies having high profits are more accountable for encouraging diversity among top-level management.

scholarly journals Corporate Board Diversity and Financial Performance: The Nigerian Insurance Sector’s Perspective

Growth ◽  
2020 ◽  
Vol 7 (1) ◽  
pp. 20-25
Author(s):  
Gbarato, Ledum Moses
Keyword(s):  
Financial Performance ◽  
Gender Diversity ◽  
Negative Influence ◽  
Least Square ◽  
Insurance Companies ◽  
Board Members ◽  
Board Composition ◽  
Corporate Board ◽  
Board Size ◽  
Board Diversity

The presence of appropriate gender diversity, board size and board composition does not only promote favourable organizational ambience but also offers meaningful upsurge in the financial position of an organization relatively. It is on this premise that prompted the essence to examine the relationship between corporate board diversity and financial performance of insurance companies in Nigeria for the period 2014 to 2018. Secondary data from Cornerstone Insurance Plc. and Lasaco Assurance Plc. were employed in the study. Using the Panel least Square regression technique, the results reveal that gender diversity, board size and board composition exert insignificant influence on profit before tax as the measure of financial performance. However, while gender diversity exerts negative influence, board size and board composition exert positive influences on profit before tax of insurance companies. The study concludes that employment of appropriate number of directors and also in suitable composition as board members have positive effect on the financial performance of insurance firms. Therefore, the study recommended among others, that: appropriate ratio of executive to independent non-executive directors should be maintained among board members for better decision-making at the interest of all stakeholders. Also, the ratio of gender diversity (female to male directors) should be increased as the role of women in resource management cannot be relegated to the background especially in financial performance of insurance companies.

Management gender diversity, executives compensation and firm performance

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Chenxuan Chen ◽  
Abeer Hassan
Keyword(s):  
Firm Performance ◽  
Corporate Performance ◽  
Gender Diversity ◽  
Empirical Support ◽  
Listed Companies ◽  
Compensation System ◽  
Female Executives ◽  
Content Type ◽  
Firm Financial Performance ◽  
Upper Echelons Theory

Purpose This paper aims to contribute to the discussion on the executives’ team and firm performance by investigating the relationships between executives’ compensation, management gender diversity and firm financial performance in growth enterprises market (GEM) listed firms in China. Design/methodology/approach Data are collected from 461 companies listed on GEM boards during the period from the year 2016 to 2018. Specifically, executives’ compensation and female executives are set as the independent variables, and the proxy selected of corporate performance is Tobin’s Q ratio. Findings The results show that the correlation between corporate performance and executive cash payment is not significant, while executives’ equity-based compensation shows a significant positive correlation with firm performance. In addition, the participation of female executives is negatively associated with firm performance. Research limitations/implications The results have practical implications for governments, policymakers and regulatory authorities, by indicating the importance of women to corporate success. In particular, the findings of this paper emphasize the specific background of GEM in China and provide empirical support for the value of women’s participation in corporate governance. In addition, the finding on the relationship between executive compensation and corporate performance of GEM listed companies provides guidance for the establishment of a performance compensation system of GEM listed companies in China. Originality/value This paper provides new evidence for the current literature of executive team and corporate performance. This is the first paper to adopt triangulation in theories from different disciplines including optimal contractual approach, managerial power approach as new perspectives of agency theory, upper echelons theory, motivational-hygiene theory and women leadership style theory. The results will contribute to provide guidance for enterprises to formulate an efficient compensation system and build a reasonable senior management team structure.

Board gender diversity, board compensation and firm performance. Evidence from Jordan

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Taha Almarayeh
Keyword(s):  
Firm Performance ◽  
Financial Performance ◽  
Least Squares ◽  
Gender Diversity ◽  
Ordinary Least Squares ◽  
Content Type ◽  
Firm Financial Performance ◽  
Board Compensation ◽  
Board Gender Diversity ◽  
The Impact

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.

scholarly journals Lease Financing as a Performance Driver: Evidence from Oil and Gas Sector of Pakistan

2020 ◽  
Vol 8 (1) ◽  
pp. 53-61
Author(s):  
Muhammad Usman Arshad ◽  
◽  
Zahid Bashir ◽  
Muhammad Asif ◽  
Ghalib Hussain ◽  
...  
Keyword(s):  
Firm Performance ◽  
Financial Performance ◽  
Oil And Gas ◽  
Research Study ◽  
Oil And Gas Industry ◽  
Least Square ◽  
Annual Reports ◽  
Future Research ◽  
Gas Industry ◽  
Oil And Gas Sector

The sole aim of the study is to analyze the effect of the lease as a potential driver of firm’s financial performance in oil and gas industry of Pakistan. The population for the current research study comprises of 18 listed companies of oil and gas sector of Pakistan but the final sample includes only nine companies which were using lease financing. The data were collected from the annual reports of companies from the year 2013 to 2017. Lease financing is used as an independent variable while firm performance as dependent variable defined by ROA. ordinary least square method was used. The study concludes that financing through the lease is not a significant driver of financial performance in oil and gas companies of Pakistan and also negatively affecting it rather these companies heavily rely on debt financing which decreases their performance. Only the firm size has a positive and significant effect on a firm’s performance in this sector. The policy makers and management should consider lease financing as a potential factor of decreasing the firm performance in oil and gas industry of Pakistan for future consideration. The research study has considerable importance for the oil and gas sector of Pakistan as the first in this domain for the future research, especially for the lease financing

scholarly journals Ownership structure and firm performance: Evidence from Nigerian listed companies

2011 ◽  
Vol 8 (4) ◽  
pp. 391-400
Author(s):  
Adebiyi J. Abosede ◽  
Kajola Oluwafemi Sunday
Keyword(s):  
Firm Performance ◽  
Financial Performance ◽  
Linear Relationship ◽  
Ownership Structure ◽  
Significant Relationship ◽  
Listed Companies ◽  
Firm Financial Performance ◽  
Non Linear ◽  
The Relationship

This paper examines the relationship between firms’ ownership structure and financial performance in Nigeria, using a sample of thirty listed companies between 2001 and 2008. Using pooled OLS as a method of estimation and after controlling for four firm-specific characteristics, our results show a negative and significant relationship between ownership structure (director shareholding) and firm financial performance (ROE). This is in support of Entrenchment hypothesis. Also, our study does not support a non-linear relationship between ownership structure and firm performance.

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

2016 ◽  
Vol 31 (7) ◽  
pp. 434-455 ◽  
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.

scholarly journals Does Corporate Social Responsibility Mediate the Relation between Boardroom Gender Diversity and Firm Performance of Chinese Listed Companies?

2018 ◽  
Vol 10 (10) ◽  
pp. 3591 ◽  
Author(s):  
Muhammad Sial ◽  
Chunmei Zheng ◽  
Jacob Cherian ◽  
M.A. Gulzar ◽  
Phung Thu ◽  
...  
Keyword(s):  
Corporate Social Responsibility ◽  
Firm Performance ◽  
Social Responsibility ◽  
Financial Performance ◽  
Gender Diversity ◽  
Chief Executive ◽  
Least Square ◽  
Csr Reporting ◽  
Corporate Social ◽  
The Relationship

Although the relationship between board gender diversity and a firm’s financial performance has been investigated before, the current study provides a valuable contribution by exploring the complex phenomenon of the mediating impact of corporate social responsibility (CSR) performance on a firm’s financial performance. The current study aims to explore whether corporate social responsibility (represented by the proxy variable of CSR reporting) mediates the relationship between boardroom gender diversity and firm performance. We use the pooled ordinary least square (OLS) regression to examine the above relationship by using data from 2008 to 2015. To control the likelihood of endogeneity we also use one-year lagged and two-stage least square (2SLS) regression models. Our results show that boardroom gender diversity is significant, positively correlated with firm performance, and CSR fully mediates the relationship between boardroom gender diversity and firm performance. In addition, four control variables (independent director, Chief executive officer (CEO power), board member meeting frequency, Big4, and leverage) have some influence on firm performance. These findings hold for a set of robustness tests. Our findings have the implication for the investors and regulators. For investors, our results show that the existence of female directors on the board can improve the firm performance. For regulators, our results advise the worldwide policy maker to give the importance to boardroom gender diversity. The paper contributes to the existing studies, by pioneering the investigations of the mediating role of CSR in the relation between boardroom gender diversity and firm performance in Chinese context.

scholarly journals Sustainability of Financial Performance in Relation to Gender Diverse Boards: A Comparative Analysis of French and Romanian Listed Companies on Stock Exchanges

2021 ◽  
Vol 13 (18) ◽  
pp. 10282
Author(s):  
Anda Adelina Suciu ◽  
Dragoș Păun ◽  
Florin Sebastian Duma
Keyword(s):  
Comparative Analysis ◽  
Financial Performance ◽  
Boards Of Directors ◽  
Gender Diversity ◽  
Listed Companies ◽  
Business Case ◽  
Bottom Line ◽  
Firm Financial Performance ◽  
Gender Diverse ◽  
The Impact

While the moral argument for gender diversity has already been made and is incontestable, and more and more economical arguments have been brought to support the business case for the presence of women on the boards of directors of publicly listed companies, the bottom-line issue of what kind of impact gender diverse boards have on firm financial performance is still unclear. The aim of this paper is to deliver a comparative analysis of the impact of gender diverse boards on firm financial performance in France and Romania. Our results do not to provide any evidence of a link between boards’ gender diversity and companies’ financial performance, but while the analysis has failed to find a positive link between female presence and firm financial performance, it has not outlined a negative one.

Women directors and performance: evidence from Malaysia

2019 ◽  
Vol 38 (8) ◽  
pp. 841-856 ◽  
Author(s):  
Kwee Pheng Lim ◽  
Chun-Teck Lye ◽  
Yee Yen Yuen ◽  
Wendy Ming Yen Teoh
Keyword(s):  
Firm Performance ◽  
Financial Performance ◽  
Gender Diversity ◽  
Listed Companies ◽  
Women Directors ◽  
Content Type ◽  
Developed Economies ◽  
And Gender ◽  
The Impact ◽  
The Relationship

Purpose The purpose of this paper is to examine the relationship between women on board and the financial performance of Malaysian listed companies. Design/methodology/approach Panel generalised method of moments (GMM) analysis was used over 928 public-listed companies listed on the Malaysian Stock Exchange from 2010 to 2016. GMM overcomes the problem of endogeneity and simultaneity bias. The dependent variable was firm performance, measured by Tobin’s Q. The explanatory variable was gender diversity, proxied by the percentage of women on board, the presence of women and gender heterogeneity indices, Blau and Shannon indices. Findings More gender diversification leads to declining firm performance possibly due to issues of tokenism and gender stereotypes. Research limitations/implications Further studies should look into the impact of various types of ownership structures on firm value and also by sectors. Practical implications As women represent half the population in Malaysia, more positive affirmative policies must be introduced to enhance their contributions to society. Social implications As women progress in society, their contributions towards nation building will be significant. Women not only play a nurturing role, but also can shape the destiny of a country. Originality/value Studies on the relationship between board gender diversity and financial performance have been conducted in the context of a few developed economies. This study contributes to the literature by examining such an issue in a developing economy that has a different environment from that of developed economies.

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