Open AccessBoard Gender Diversity, Firm Performance and Risk-Taking: The Case of Non-Financial Firms of Pakistan
Author(s) -
Raheel Mumtaz,
Muhammad Rehan,
Quaisar Ijaz Khan,
Rubab Zaidi
Publication year - 2021
Publication title -
irasd journal of economics
Language(s) - English
Resource type - Journals
eISSN - 2709-6742
pISSN - 2709-6734
DOI - 10.52131/joe.2021.0303.0050
Subject(s) - gender diversity , stock exchange , panel data , business , insolvency , accounting , return on assets , diversity (politics) , index (typography) , finance , economics , corporate governance , econometrics , sociology , world wide web , anthropology , computer science
This paper examines the influence of board gender diversity on firm performance and risk taking. We employed the panel data of seventy-five non-financial firms of KSE-100 index listed in the Pakistan Stock Exchange. The data consists of 2005-2018 period. Results of panel regression reveal that board gender diversity have adverse influence on the firm performance i-e Tobin’s Q and return on assets. Moreover, it further provides that board gender diversity has decrease the firm’s risk-taking i-e insolvency risk. Overall, the inclusion of females in the boardroom reduces the financial performance and decrease the risk-taking of non-financial firms in Pakistan. This study provides the managerial and practical implications in compliance with SECP Act of 2017, to include the females in boardroom to discourage the risk-taking behavior of firms.