Get 20M+ Full-Text Papers For Less Than $1.50/day. Start a 14-Day Trial for You or Your Team.

Learn More →

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

Does board gender diversity impact financial performance? Evidence from the Indian IT sector 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/approachThe 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.FindingsThe 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/implicationsThe 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/valueThe 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. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Society and Business Review Emerald Publishing

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

Loading next page...
 
/lp/emerald-publishing/does-board-gender-diversity-impact-financial-performance-evidence-from-6D0f6YLYlL

References (109)

Publisher
Emerald Publishing
Copyright
© Emerald Publishing Limited
ISSN
1746-5680
eISSN
1746-5680
DOI
10.1108/sbr-09-2021-0164
Publisher site
See Article on Publisher Site

Abstract

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/approachThe 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.FindingsThe 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/implicationsThe 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/valueThe 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.

Journal

Society and Business ReviewEmerald Publishing

Published: Feb 2, 2023

Keywords: Board gender diversity; Financial performance; IT sector; Panel data; India; Developing economy

There are no references for this article.