IDEAS home Printed from https://ideas.repec.org/a/bjc/journl/v10y2023i11p442-456.html
   My bibliography  Save this article

Effect of Board Gender Diversity on Financial Performance of Quoted Deposit Money Banks in Nigeria

Author

Listed:
  • John Abuh Oyidih

    (Nasarawa State University Keffi Nigeria)

Abstract

The monitoring role of the board of directors is a critical corporate governance and control mechanism, especially in countries like Nigeria where external control mechanisms are less well developed. This study examines the effect of gender diversity on financial performance of listed deposit money banks in Nigeria. The population comprises of all the deposit money banks in Nigeria while thirteen (13) listed deposit money banks were sampled, based on their being listed on the Nigerian Exchange Limited from the period 2010 to 2021. The data was analysed using Shapiro-Wilk Normality, Pearson correlation, Heteroskedasticity Breusch-Pagan Test, Hausman specification test and Breusch-Pagan Lagrangian Multiplier Test while hypotheses were tested using robust random effect regression model. The results show that gender diversity (GD) has a significant positive effect on financial performance of listed deposit money banks in Nigeria for the period under review. The study recommends that the owners and regulators of deposit money banks in Nigeria should increase the numberof women gender on their boards to about 45% to enhance their financial performance.

Suggested Citation

  • John Abuh Oyidih, 2023. "Effect of Board Gender Diversity on Financial Performance of Quoted Deposit Money Banks in Nigeria," International Journal of Research and Scientific Innovation, International Journal of Research and Scientific Innovation (IJRSI), vol. 10(11), pages 442-456, November.
    • Handle: RePEc:bjc:journl:v:10:y:2023:i:11:p:442-456
    as

    Download full text from publisher

    File URL: https://www.rsisinternational.org/journals/ijrsi/digital-library/volume-10-issue-11/442-456.pdf
    Download Restriction: no
    File URL: https://rsisinternational.org/journals/ijrsi/articles/effect-of-board-gender-diversity-on-financial-performance-of-quoted-deposit-money-banks-in-nigeria/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Kevin Campbell & Antonio Mínguez-Vera, 2008. "Gender Diversity in the Boardroom and Firm Financial Performance," Journal of Business Ethics, Springer, vol. 83(3), pages 435-451, December.
    2. Claudiu BOCEAN & Catalin M. BARBU, 2007. "Corporate Governance And Firm Performance," Management and Marketing Journal, University of Craiova, Faculty of Economics and Business Administration, vol. 5(1), pages 125-131, November.
    3. S. Ogege & T. Boloupremo, 2014. "Corporate Governance and Financial Performance of Banks: Evidence from Nigeria," Hyperion Economic Journal, Faculty of Economic Sciences, Hyperion University of Bucharest, Romania, vol. 2(2), pages 25-36, June.
    4. Muhammad Ali & Yin Ng & Carol Kulik, 2014. "Board Age and Gender Diversity: A Test of Competing Linear and Curvilinear Predictions," Journal of Business Ethics, Springer, vol. 125(3), pages 497-512, December.
    5. Austin UJUNWA & Chinwe OKOYEUZU & Ifeoma NWAKOBY, 2012. "Corporate Board Diversity and Firm Performance: Evidence from Nigeria," REVISTA DE MANAGEMENT COMPARAT INTERNATIONAL/REVIEW OF INTERNATIONAL COMPARATIVE MANAGEMENT, Faculty of Management, Academy of Economic Studies, Bucharest, Romania, vol. 13(4), pages 605-620, October.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. John Abuh Oyidih, 2023. "Effect of Board Religion Diversity on Financial Performance of Quoted Deposit Money Banks in Nigeria," International Journal of Research and Scientific Innovation, International Journal of Research and Scientific Innovation (IJRSI), vol. 10(11), pages 466-480, November.
    2. Rekha Handa, 2021. "Does Presence of Foreign Directors Make a Difference? A Case of Indian IPOs," Business Perspectives and Research, , vol. 9(1), pages 111-127, January.
    3. Hiroaki Niikura & Miki Seko, 2020. "The effect of inside and outside female directors on firm performance: comparison of the First section, Second section, Mothers, and Jasdaq in the Tokyo Stock Exchange Market," International Journal of Economic Policy Studies, Springer, vol. 14(1), pages 123-166, February.
    4. Anne Marie Ward & John Forker, 2017. "Financial Management Effectiveness and Board Gender Diversity in Member-Governed, Community Financial Institutions," Journal of Business Ethics, Springer, vol. 141(2), pages 351-366, March.
    5. Aggarwal, Raj & Jindal, Varun & Seth, Rama, 2019. "Board diversity and firm performance: The role of business group affiliation," International Business Review, Elsevier, vol. 28(6), pages 1-1.
    6. Sharma, Amalesh & Moses, Aditya Christopher & Borah, Sourav Bikash & Adhikary, Anirban, 2020. "Investigating the impact of workforce racial diversity on the organizational corporate social responsibility performance: An institutional logics perspective," Journal of Business Research, Elsevier, vol. 107(C), pages 138-152.
    7. Lonkani, Ravi, 2019. "Gender differences and managerial earnings forecast bias: Are female executives less overconfident than male executives?," Emerging Markets Review, Elsevier, vol. 38(C), pages 18-34.
    8. Mohammed Mahmud Kakanda, & Basariah Salim, & Sitraselvi Chandren,, 2017. "Do board characteristics and risk management disclosure have any effect on firm performance? Empirical evidence from Deposit Money Banks (DMBs) in Nigeria," Business and Economic Horizons (BEH), Prague Development Center, vol. 13(4), pages 506-521, October.
    9. Collins Ntim, 2015. "Board diversity and organizational valuation: unravelling the effects of ethnicity and gender," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 19(1), pages 167-195, February.
    10. Maria Giuseppina Bruna & Rey Dang & L'Hocine Houanti & Jean-Michel Sahut & Michel Simioni, 2022. "By what way women on corporate boards influence corporate social performance? Evidence from a semiparametric panel model," Post-Print hal-03693781, HAL.
    11. María Consuelo Pucheta-Martínez & Inmaculada Bel-Oms & Gustau Olcina-Sempere, 2018. "Female Institutional Directors on Boards and Firm Value," Journal of Business Ethics, Springer, vol. 152(2), pages 343-363, October.
    12. Nermeen Shehata & Ahmed Salhin & Moataz El-Helaly, 2017. "Board diversity and firm performance: evidence from the U.K. SMEs," Applied Economics, Taylor & Francis Journals, vol. 49(48), pages 4817-4832, October.
    13. Claudio Nuber & Patrick Velte, 2021. "Board gender diversity and carbon emissions: European evidence on curvilinear relationships and critical mass," Business Strategy and the Environment, Wiley Blackwell, vol. 30(4), pages 1958-1992, May.
    14. Um‐E‐Roman Fayyaz & Raja Nabeel‐Ud‐Din Jalal & Michelina Venditti & Antonio Minguez‐Vera, 2023. "Diverse boards and firm performance: The role of environmental, social and governance disclosure," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 30(3), pages 1457-1472, May.
    15. Unai Arzubiaga & Txomin Iturralde & Amaia Maseda & Josip Kotlar, 2018. "Entrepreneurial orientation and firm performance in family SMEs: the moderating effects of family, women, and strategic involvement in the board of directors," International Entrepreneurship and Management Journal, Springer, vol. 14(1), pages 217-244, March.
    16. Bruna, Maria Giuseppina & Đặng, Rey & Houanti, L'hocine & Sahut, Jean-Michel & Simioni, Michel, 2022. "By what way women on corporate boards influence corporate social performance? Evidence from a semiparametric panel model," Finance Research Letters, Elsevier, vol. 49(C).
    17. Patrizia Pastore & Silvia Tommaso & Antonio Ricciardi, 2017. "The Market Reaction to the Appointment of Women on Corporate Boards: Evidence from the Italian Listed Companies," International Journal of Business and Management, Canadian Center of Science and Education, vol. 12(12), pages 1-64, November.
    18. Mauro Sciarelli & Giovanni Catello Landi & Lorenzo Turriziani & Mario Tani, 2021. "Academic entrepreneurship: founding and governance determinants in university spin-off ventures," The Journal of Technology Transfer, Springer, vol. 46(4), pages 1083-1107, August.
    19. Viput Ongsakul & Anutchanat Jaroenjitrkam & Sirimon Treepongkaruna & Pornsit Jiraporn, 2022. "Does board gender diversity reduce ‘CEO luck’?," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 62(1), pages 243-260, March.
    20. Stephen Gray & John Nowland, 2017. "The diversity of expertise on corporate boards in Australia," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 57(2), pages 429-463, June.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bjc:journl:v:10:y:2023:i:11:p:442-456. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Dr. Renu Malsaria (email available below). General contact details of provider: https://rsisinternational.org/journals/ijrsi/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.