The impact of institutional quality on gender diverse boards and firm financial performance. A comparison of firms operating in different emerging countries
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2020-11-25
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en
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Abstract
Theoretical approaches as well as previous studies investigating the direct relationship between gender diversity in the board of directors and firm financial performance show contradictory results. This thesis tries to make sense of some of these inconsistencies by investigating the moderating role of the quality of a country’s institutional and legal context in which firms operate. Institutional quality is measured with two dimensions, the degree of shareholder protection and the quality of laws providing the same economic opportunities for women. In general, this study predicts that both dimensions positively moderate the relation between gender diverse boardrooms and firm financial performance. A cross-sectional empirical analysis studies data from 811 mainly listed firms from 18 emerging countries in 2017. Selecting multiple emerging countries extends the literature as most studies focus on developed countries or only a few emerging countries. The results show that both institutional quality dimensions seem to have no significant moderating effect on the relationship between female board representation and firm financial performance. Further research is needed to clarify the empirical inconsistent results and could take broader institutional context measures of countries into account.
Keywords: Board of directors, gender diverisity, financial performance, institutional quality, moderating effect, emerging countries
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Faculteit der Managementwetenschappen