Does board gender diversity impact financial performance? Evidence from the Indian IT sector

Jagvinder Singh · Shubham Singhania · Deepti Aggrawal

50 citations0/0 files storedSociety and Business Review

No readable copy stored yet — this record is metadata only.

No open-access location is known for this record yet.

Literature note Cite in a project Citation map

Gender Diversity and Inequality Corporate Finance and Governance Gender Politics and Representation

Abstract

Purpose This study aims to evaluate the impact of gender diversity on corporate boards on firms’ financial performance in the context of the Indian information and technology (IT) sector. The Companies Act 2013 brought forth mandatory provisions for the appointment of women directors for a certain class of companies. This study explores the case of board gender diversity in the Indian IT sector’s unique setting. Design/methodology/approach The study uses a fixed effect panel data regression model to achieve its objectives. Two widely used diversity measures, Blau Index and Shannon Index, have been used to enhance the robustness of the results. Findings The results of the study indicate an insignificant relationship between gender diversity and firms’ financial performance. Even the diversity indices portray insignificant results confirming the outcomes of the study. The study indicates that IT sector firms have not been able to leverage the benefits of board gender diversity. Research limitations/implications The results of the study have important policy implications for the government, regulatory bodies and corporates. The outcomes point out that the benefits that could have accrued based on the diversity aspect could not be harnessed, as the women’s representation on corporate boards is extremely low. Policymakers and government shall focus on devising stringent laws so that better representation of women directors can be used for the interests of the firms. Originality/value The study is an attempt to fill the gap in the extant literature which has a scarce number of studies conducted in the unique setting of the IT sector (both in developed and developing economies). To the best of the authors’ knowledge, this is the first study on the influence of board gender diversity in the IT sector of a developing economy, backed by socio-cultural reasons.

Paper brief

Loading…

Cite this work

Citation unavailable for this work.

BibTeX RIS CSL-JSON

No public copy is stored for this record, so only the metadata is cited.

Citations in this library

Citation map →

Stored only when both papers are in the corpus — 50 citations exist upstream.

References

1976Theory of the firm: Managerial behavior, agency costs and ownership structure 1992Universals in the Content and Structure of Values: Theoretical Advances and Empirical Tests in 20 Countries 1993The Modern Industrial Revolution, Exit, and the Failure of Internal Control Systems 2009Women in the boardroom and their impact on governance and performance☆2003Corporate Governance, Board Diversity, and Firm Value 1977Some Effects of Proportions on Group Life: Skewed Sex Ratios and Responses to Token Women 1992A Modest Proposal for Improved Corporate Governance 1994A Simple Approximation of Tobin's q

Cited by

2022Board committees and financial performance: exploring the effects of gender diversity in the emerging economy of India 2022Gender bias, board diversity, and firm value: Evidence from a natural experiment 2022Corporate Governance and Risk Management: A Bibliometric Mapping for Future Research Agenda 2022Gender diversity on board and corporate sustainability: a quantitative review based on bibliometric mapping

Explore the map →

Papers that cite the same references — the relational fallback while embeddings are still backfilling.

Imported from OpenAlex (CC0) — nothing here is generated.