IDEAS home Printed from https://ideas.repec.org/p/pra/mprapa/98798.html
   My bibliography  Save this paper

Impact of Board Gender Diversity on The Financial Performance of Conventional and Islamic Banks – An Evidence from Pakistan

Author

Listed:
  • Shehar Yar, Shehar Yar Ahmed

Abstract

This study has been conducted to determine the impact of board gender diversity on the financial performance of the Pakistani Conventional and Islamic Banks. The overall objective is to quantify the impact of gender diversity and the performance of banks. The study included a panel of 12 banks and data from 2008 to 2018 was obtained and using the multiple regression approach the results of the study indicates that performance of banks is not predicted by the measures of gender diversity. The study also indicates a lower level of female presence on the boards of conventional and Islamic banks. It has been recommended to increase the level of female presence on bank boards of Pakistan to increase the board independence, reduce the diversity gap and to resolve the ethical issues.

Suggested Citation

  • Shehar Yar, Shehar Yar Ahmed, 2020. "Impact of Board Gender Diversity on The Financial Performance of Conventional and Islamic Banks – An Evidence from Pakistan," MPRA Paper 98798, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:98798
    as

    Download full text from publisher

    File URL: https://mpra.ub.uni-muenchen.de/98798/1/MPRA_paper_98798.pdf
    File Function: original version
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Fama, Eugene F & Jensen, Michael C, 1983. "Agency Problems and Residual Claims," Journal of Law and Economics, University of Chicago Press, vol. 26(2), pages 327-349, June.
    2. Amy J. Hillman & Albert A. Cannella & Ramona L. Paetzold, 2000. "The Resource Dependence Role of Corporate Directors: Strategic Adaptation of Board Composition in Response to Environmental Change," Journal of Management Studies, Wiley Blackwell, vol. 37(2), pages 235-256, March.
    3. Pathan, Shams & Faff, Robert, 2013. "Does board structure in banks really affect their performance?," Journal of Banking & Finance, Elsevier, vol. 37(5), pages 1573-1589.
    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.
    5. Andres, Pablo de & Vallelado, Eleuterio, 2008. "Corporate governance in banking: The role of the board of directors," Journal of Banking & Finance, Elsevier, vol. 32(12), pages 2570-2580, December.
    6. Hammad Hassan Mirza & Sumaira Andleeb & Farzana Ramzan, 2012. "Gender Diversity and Firm Performance: Evidence from Pakistan," Journal of Social and Development Sciences, AMH International, vol. 3(5), pages 161-166.
    7. 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.
    8. 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.
    9. Niclas L. Erhardt & James D. Werbel & Charles B. Shrader, 2003. "Board of Director Diversity and Firm Financial Performance," Corporate Governance: An International Review, Wiley Blackwell, vol. 11(2), pages 102-111, April.
    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. Bowo Setiyono & Amine Tarazi, 2018. "Does Diversity of Bank Board Members Affect Performance and Risk? Evidence from an Emerging Market," CSR, Sustainability, Ethics & Governance, in: Belén Díaz Díaz & Samuel O. Idowu & Philip Molyneux (ed.), Corporate Governance in Banking and Investor Protection, chapter 0, pages 185-218, Springer.
    2. Dolors Setó‐Pamies, 2015. "The Relationship between Women Directors and Corporate Social Responsibility," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 22(6), pages 334-345, November.
    3. Mehdi Nekhili & Hayette Gatfaoui, 2013. "Are Demographic Attributes and Firm Characteristics Drivers of Gender Diversity? Investigating Women’s Positions on French Boards of Directors," Journal of Business Ethics, Springer, vol. 118(2), pages 227-249, December.
    4. Farag, Hisham & Mallin, Chris, 2017. "Board diversity and financial fragility: Evidence from European banks," International Review of Financial Analysis, Elsevier, vol. 49(C), pages 98-112.
    5. Rihab Grassa, 2016. "Corporate governance and credit rating in Islamic banks: Does Shariah governance matters?," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 20(4), pages 875-906, December.
    6. Francesco Manta & Annunziata Tarulli & Domenico Morrone & Pierluigi Toma, 2020. "Toward a Quadruple Bottom Line: Social Disclosure and Financial Performance in the Banking Sector," Sustainability, MDPI, vol. 12(10), pages 1-18, May.
    7. Helena Isidro & Márcia Sobral, 2015. "The Effects of Women on Corporate Boards on Firm Value, Financial Performance, and Ethical and Social Compliance," Journal of Business Ethics, Springer, vol. 132(1), pages 1-19, November.
    8. YAGLI, Ibrahim & ŞİMŞEK, Burcu, 2017. "Meta-Analytic Review Of The Relation Between Board Globalization And Firm Performance," Studii Financiare (Financial Studies), Centre of Financial and Monetary Research "Victor Slavescu", vol. 21(2), pages 31-55.
    9. María Victoria Uribe‐Bohorquez & Jennifer Martínez‐Ferrero & Isabel‐María García‐Sánchez, 2019. "Women on boards and efficiency in a business‐orientated environment," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 26(1), pages 82-96, January.
    10. Badru, Bazeet O. & Ahmad-Zaluki, Nurwati A. & Wan-Hussin, Wan Nordin, 2017. "Board characteristics and the amount of capital raised in the Malaysian IPO market," Journal of Multinational Financial Management, Elsevier, vol. 42, pages 37-55.
    11. Naeem Tabassum & Satwinder Singh, 2020. "Corporate Governance and Organisational Performance," Springer Books, Springer, number 978-3-030-48527-6, June.
    12. Dong, Yizhe & Girardone, Claudia & Kuo, Jing-Ming, 2017. "Governance, efficiency and risk taking in Chinese banking," The British Accounting Review, Elsevier, vol. 49(2), pages 211-229.
    13. 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.
    14. Kara, Alper & Nanteza, Aziidah & Ozkan, Aydin & Yildiz, Yilmaz, 2022. "Board gender diversity and responsible banking during the COVID-19 pandemic," Journal of Corporate Finance, Elsevier, vol. 74(C).
    15. Qurat Ul Ain & Xianghui Yuan & Hafiz Mustansar Javaid & Jinkai Zhao & Li Xiang, 2021. "Board Gender Diversity and Dividend Policy in Chinese Listed Firms," SAGE Open, , vol. 11(1), pages 21582440219, February.
    16. Zulkufly Ramly & Sok-Gee Chan & Mohd Zulkhairi Mustapha & Noor Sharoja Sapiei, 2017. "Women on boards and bank efficiency in ASEAN-5: the moderating role of the independent directors," Review of Managerial Science, Springer, vol. 11(1), pages 225-250, January.
    17. Víctor Alonso Baldrich Mora, 2019. "Mujeres en juntas directivas en Colombia y su efecto sobre el desempeno financiero de las empresas," Documentos CEDE 17140, Universidad de los Andes, Facultad de Economía, CEDE.
    18. García-Meca, Emma & García-Sánchez, Isabel-María & Martínez-Ferrero, Jennifer, 2015. "Board diversity and its effects on bank performance: An international analysis," Journal of Banking & Finance, Elsevier, vol. 53(C), pages 202-214.
    19. Akshita Arora, 2022. "Gender diversity in boardroom and its impact on firm performance," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 26(3), pages 735-755, September.
    20. Marwa Sallemi & Salah Ben Hamad & Nejla Ould Daoud Ellili, 2023. "Impact of board of directors on insolvency risk: which role of the corruption control? Evidence from OECD banks," Review of Managerial Science, Springer, vol. 17(8), pages 2831-2868, November.

    More about this item

    Keywords

    Gender Diversity; Bank Performance; Conventional vs Islamic Banks;
    All these keywords.

    JEL classification:

    • M19 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Other

    NEP fields

    This paper has been announced in the following NEP Reports:

    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:pra:mprapa:98798. 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: Joachim Winter (email available below). General contact details of provider: https://edirc.repec.org/data/vfmunde.html .

    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.