Unlocking the path to financial success: exploring the influence of board diversity on firm financial performance and moderated by institutional ownership

Abid Noor and Rohail Hassan

Global Business and Economics Review, 2026, vol. 35, issue 1, 21-45

Abstract: The paper aims to investigate the effect of board diversity attributes, including gender, education, tenure, board size, and their impacts on firm financial performance, as well as the moderating role of institutional ownership. A sample of 270 non-financial firms is obtained using judgemental sampling from a target population of 470 firms listed on the Pakistan Stock Exchange from 2017 to 2021. The panel data techniques are employed for data analysis. The findings show that board gender diversity has a positive and significant impact on firm financial performance. Also, institutional ownership moderates the relationship between a master's education and firm financial performance. The paper significantly contributes to the domain of corporate governance under the lens of 'upper-echelon theory. ' This study will help corporate boards to decide on the inclusion of gender diversity and board members' education, i.e., to what extent qualified members contribute to the success of the corporate boards.

Keywords: gender diversity; educational diversity; tenure diversity; board size. (search for similar items in EconPapers)
Date: 2026
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