Affects of Female Directors on Firms Performance in Pakistan
Modern Economy, 2012, 3, 817-825
9 Pages Posted: 18 Jan 2015
Date Written: November 29, 2012
This study examined relationship between board gender diversity and its effect on firm performance, based on evidence from the Pakistan. We use empirical data on KSE 100 Index firms observed in 2008 to 2010. Twenty Five percent (25%) of the sample firms have at least one woman in the boardroom and only 3.33% of the CEOs are female. In order to in-vestigate the rapport of gender diversity in board on firm performance, two-stage least-squares estimation used, using Economic Valued Added (EVA) as performance measurement technique. Our results indicate that there is no significant relationship between board gender diversity on firm performance in Pakistan. This implies that the business case for board gender diversity is not supported for this particular sample.
Keywords: Corporate Governance; Firm Performance; Gender Diversity in Boardroom; Economic Value Added (EVA)
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