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Effect of gender diversity on the financial performance of insurance firms in Kenya

Author

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  • Hassan Bashir Ibrahim

    (Chandaria School of Business, United States International University –Africa, Nairobi, Kenya)

  • Caren Ouma

    (Chandaria School of Business, United States International University –Africa, Nairobi, Kenya)

  • Jeremiah Koshal

    (Chandaria School of Business, United States International University –Africa, Nairobi, Kenya)

Abstract

The aim of this study was to examine the effect of gender diversity on the financial performance of insurance firms in Kenya. The study analyzed data from the 55 insurance firms licensed by the Insurance Regularity Authority (IRA) in Kenya. Gender diversity was operationalized by the number of female directors serving on the boards of insurance firms operating in Kenya. Primary data was collected from a sample of 412 board directors, Chief Executive Officers (CEOs), Chief Finance Officers (CFOs), Audit Committee members (AUDIND) and Internal Auditorsusing a questionnaire instrument while secondary data was retrieved from audited financial reports of the year 2017. Data were analyzed using descriptive and inferential statistics. Firm performance was measured by the two accounting-based measures Return On Assets (ROA) and Return On Equity (ROE). The findings from the regression analysis indicate that gender diversity significantly and positively affects the financial performance of insurance firms in Kenya. Key Words: Gender Diversity, Corporate Governance, Firm Performance, Board Diversity

Suggested Citation

  • Hassan Bashir Ibrahim & Caren Ouma & Jeremiah Koshal, 2019. "Effect of gender diversity on the financial performance of insurance firms in Kenya," International Journal of Research in Business and Social Science (2147-4478), Center for the Strategic Studies in Business and Finance, vol. 8(5), pages 274-285, September.
    • Handle: RePEc:rbs:ijbrss:v:8:y:2019:i:5:p:274-285
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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. João Batista Fraga & Vinícius Augusto Brunassi Silva, 2012. "Board diversity and firm performance: an empirical investigation in the Brazilian market," Brazilian Business Review, Fucape Business School, vol. 9(Special I), pages 55-77, March.
    3. Caspar Rose, 2007. "Does female board representation influence firm performance? The Danish evidence," Corporate Governance: An International Review, Wiley Blackwell, vol. 15(2), pages 404-413, March.
    4. David A. Carter & Betty J. Simkins & W. Gary Simpson, 2003. "Corporate Governance, Board Diversity, and Firm Value," The Financial Review, Eastern Finance Association, vol. 38(1), pages 33-53, February.
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    Cited by:

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