Effect of Board Gender Diversity on Firm Performance: Evidence from Pakistan

Abstract

Purpose- The goal of this paper is to examine whether or not the presence of women on boards influences the financial overall performance of corporations. This study builds upon different researches which have earlier tries to decide the effect of variety of female administrators in Pakistan corporate board on their financial performances. Women director is much hard working as compare to male director and women director are much hardworking in each field. Women director is less risky and taking decision is much better as compare to male director. 

Study Design/Methodology/Approach – In this research the author uses the sample of listed financial companies in Pakistan stock exchange 2011-2019.  In this research ordinary least square (OLS) regression are used. In this research use the panel data oftotal observation 415 firm years.  All the data are collected of annual reports of the financial organizations that had been enlisted on Pakistan stock exchange.

Finding –In order to test of hypothesis, we selected the 415 financial firms which are recorded on Pakistan stock exchange for the duration within 2011-2019. After this the current work concludes that the percentage of female directors onboard is not much significant and that it could not influence the economic output of the firms.

Originality/Value- The revised organizations Act, 2017 has mandated that the appointment of at the least one-woman director in convinced classes of indexed groups in Pakistan stock exchange. The point of interest of this study is on finding and reading the effect of gender diversity on company overall performance.