Women on Boards in Taiwan Enhancing Profitability Through Female Independent Directors

Abstract

This study seeks to examine how the characteristics of female Independent Directors influence ESG (Environmental, Social, and Governance) performance. The research focuses on PSTR (Panel Smooth Transition Regression) results for the Construction, Electronics, and Tourism industries. It reveals significant correlations between the proportion of female independent directors and Tobin’s Q value when it exceeds specific thresholds. Initially, negative effects are observed in the Construction and Tourism industries, but as the proportion of female independent directors increases, positive impacts on Tobin’s Q are seen in both sectors. However, no significant correlation is found in the Electronics industry. The study emphasizes the importance of gender diversity in corporate governance and its diverse effects on financial ratios and enterprise performance across industries.

Keywords: PSTR Regression, Female Independent Directors, Tobin's Q, Construction Industry, Electronics Industry, Tourism Industry