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

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  • 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
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    References listed on IDEAS

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    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.
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