Work

Gender diversity on the board of directors and its impact on the Palestinian financial performance of the firm

Year: 2021

Type: article

Abstract: This study aims to examine the impact of gender diversity in the Board of Directors (BOD) on the firm performance—return of assets (ROA) and return of equity (ROE)—using a sample of Palestinian non-financial companies for the period 2008–2015. Gender diversity was measured as a percentage of women in the BOD, and dummy variable for the existence of at least one woman in the BOD. The study employed method of two-stage least squares (2SLS) to address endogeneity issues in the relationship between gender diversity and company performance. The findings show that women still exist modestly in the BOD, women exist more in the BOD of industrial firms than in the BOD of service firms. Furthermore, firms with at least one woman in the BOD have a large debt ratio, independence of BOD, better ROA performance, less size, and no difference in BOD size. The results of 2sls show that gender diversity has a positive and statistically significant impact on firm performance.

Source: Cogent Economics & Finance

DOI: 10.1080/23322039.2021.1948659

Authors: Nizar Dwaikat, Ihab Sameer Qubbaj, Abdelbaset Queiri

Institution: Arab Open University

Language: English

Topic: Gender Diversity and Inequality

Subfield: Gender Studies

Field: Social Sciences

Domain: Social Sciences

SDGs: Gender equality, Decent work and economic growth, Reduced inequalities

Open Access status: gold

Estimated APC paid: $1,165