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Does board gender diversity matter in the banking sector? Evidence from Tunisia
Author(s) -
Othmani Hidaya
Publication year - 2021
Publication title -
african development review
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.654
H-Index - 32
eISSN - 1467-8268
pISSN - 1017-6772
DOI - 10.1111/1467-8268.12487
Subject(s) - gender diversity , heteroscedasticity , diversity (politics) , corporate governance , sample (material) , empirical evidence , economics , emerging markets , econometrics , correlation , accounting , business , demographic economics , political science , finance , mathematics , law , philosophy , chemistry , geometry , chromatography , epistemology
The purpose of this paper is to investigate the effects of board gender diversity on banks’ performance and risk for the case of a developing African country. Our sample includes a unique data set of Tunisian banks during the period 2005–2018. We use the two‐way cluster regression proposed by Petersen. This approach corrects for the unobserved firm effect (time‐series dependence) and time effect (cross‐sectional dependence). It gives robust standard errors adjusted for heteroscedasticity, serial correlation, and cross‐sectional correlation. Our results support a positive relationship between gender diversity and banks’ performance measured by ROA and ROE, while women board members are associated with more default risk measured by Z ‐score. Our results remain robust to various measures of gender diversity, banks’ performance and risk. The findings contribute to the literature by providing empirical evidence from Tunisia, an African emerging economy, where the examination of the role of board gender diversity on bank governance is unexplored.