Gender diversity in boardrooms: the impact of female co-opted directors on corporate governance, firm risk, and firm value

Rizwan Ali, Ali Amin, Ramiz Ur Rehman and Ahmed A. Elamer

International Journal of Manpower, 2025, vol. 46, issue 8, 1389-1417

Abstract: PurposeThis study examines the relationship between female co-opted directors and firm performance. Moreover, this study also explores the serial mediation effects of corporate governance and firm risk on this relationship.Design/methodology/approachWe used 3,385-firm year observations of the nonfinancial firms listed on the Pakistan Stock Exchange. To test the hypotheses, we applied generalized method of moments estimation and further employed ordinary least squares regression analysis and two-stage least squares analysis to check for the robustness of the results.FindingsUsing the lens of agency theory, this study reports that female co-opted directors in family firms are positively related to firm value. Moreover, the corporate governance and firm risk serially mediate this relationship, leading to higher firm value.Originality/valueThis study provides novel evidence of the positive influence of female co-opted directors on the firm value in the context of an emerging economy. Further, unlike previous studies, we use a self-constructed corporate governance index and report serial mediation effects of corporate governance and firm risk on the firm value.

Keywords: Female co-opted directors; Firm value; Corporate governance; Firm risk; Family firms (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eme:ijmpps:ijm-11-2024-0795

DOI: 10.1108/IJM-11-2024-0795

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