Board Gender Diversity and Firm Value: A Case of PSX

Waseem Subhani, Ali Amin, Muhammad Azeem Naz, Nasir Sultan and Sumaira Aslam
Additional contact information
Waseem Subhani: Institute of Business Administration, University of the Punjab, Lahore, Pakistan
Ali Amin: Pakistan Kidney and Liver Transplant Institute, Lahore, Pakistan
Muhammad Azeem Naz: School of Commerce and Accountancy, University of Management and Technology, Lahore, Pakistan
Nasir Sultan: Department of Management Sciences, University of Gujrat, Pakistan
Sumaira Aslam: School of Commerce and Accountancy, University of Management and Technology, Lahore, Pakistan

Bulletin of Business and Economics (BBE), 2024, vol. 13, issue 1, 237-245

Abstract: The effect that manager diversity has on a company's worth is examined in this study. Our research used information from 2087 observations covering 226 non-financial companies listed on the Pakistan Stock Exchange (PSX). Using panel data regression analysis and testing the results for robustness using the Blau and Shannon indices, we discovered that the presence of female directors on a business's board adds value to the company. Furthermore, our research, utilizing the critical mass theory's aspect, indicates that the impact of women's representation increases when it reaches a critical mass. This finding corroborates the critical mass theory within our sample of firms. We endorse the compulsory inclusion of women executives on the firm's boards as mandated by governance regulations. The study is consistent with legislative initiatives to improve corporate governance procedures to safeguard shareholders. Our findings also give policymakers direction by showing how crucial it is to support women's professional development and career advancement to increase their meaningful participation in business decision-making processes. To sum up we argue that gender diversity reduces agency conflicts and increases company value, making it a helpful instrument in corporate governance.

Keywords: Gender Diversity; Firm Value; Critical Mass Theory; Female Presence on Board (search for similar items in EconPapers)
Date: 2024
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://bbejournal.com/BBE/article/view/696/625 (application/pdf)
https://bbejournal.com/BBE/article/view/696 (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:rfh:bbejor:v:13:y:2024:i:1:p:237-245

DOI: 10.61506/01.00197

Access Statistics for this article

Bulletin of Business and Economics (BBE) is currently edited by Dr. Muhammad Irfan Chani

More articles in Bulletin of Business and Economics (BBE) from Research Foundation for Humanity (RFH) Contact information at EDIRC.
Bibliographic data for series maintained by Dr. Muhammad Irfan Chani ().