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Gender Diversity and Firms’ Financial Performance in Malaysia

Author

Listed:
  • Irean Yap Lee-Kuen

    (Faculty of Business and Accountancy, University of Malaya, 50603 Kuala Lumpur, Malaysia)

  • Chan Sok-Gee

    (Faculty of Business and Accountancy, University of Malaya, 50603 Kuala Lumpur, Malaysia)

  • Rozaimah Zainudin

    (Faculty of Business and Accountancy, University of Malaya, 50603 Kuala Lumpur, Malaysia)

Abstract

This study aims to investigate the relationship between gender diversity in a firm’s board of directors and financial performance of firms listed on Bursa Malaysia for the period between 2009 and 2013. Using unbalanced panel data analysis, we tested whether gender diversity in the boardroom may influence the firm’s performance, as measured by Tobin’s Q. We employed four different proxies for gender diversity (the dummy variable for women, the percentage of women on the board, the Blau index, and the Shannon index) to provide a more comprehensive measure of gender diversity. This study suggests that a higher degree of female representation on the board increases a firm’s financial performance. Positive discrimination favouring female boardroom appointment is therefore likely to persist as a feature of the corporate governance landscape in Malaysia.

Suggested Citation

  • Irean Yap Lee-Kuen & Chan Sok-Gee & Rozaimah Zainudin, 2017. "Gender Diversity and Firms’ Financial Performance in Malaysia," Asian Academy of Management Journal of Accounting and Finance (AAMJAF), Penerbit Universiti Sains Malaysia, vol. 13(1), pages 41-62.
    • Handle: RePEc:usm:journl:aamjaf01301_41-62
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    References listed on IDEAS

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    Cited by:

    1. Lee Siew Tee & Ismail Nizam, 2020. "The Influence of Corporate Governance on Financial Performance Mediated by Gender Diversity," Journal of Asian Business Strategy, Asian Economic and Social Society, vol. 10(1), pages 61-79, January.

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