Author

  • Hammad Hassan Mirza

    • University of Sargodha, Pakistan
    • Pakistan
  • Shahid Mahmood

    • University of Sargodha, Pakistan
    • Pakistan
  • Sumaira Andleeb

    • Beaconhouse School System Sargodha, Pakistan
    • Pakistan
  • Farzana Ramzan

    • University of Sargodha, Pakistan
    • Pakistan

Abstract

Gender diversity and firm performance, is among the new but challenging topics of research in management sciences. Many researchers have studied the role of gender diversity in enhancing firms’ performance in developed economies (see for example, Dwyer et. al, 2003; and Kang et al, 2010). Existing literature on this subject is rare in emerging economies and to the best of author’s knowledge; this is the first study on relationship of gender diversity and firm’s performance in Pakistani context. Present study focuses on the impact of presence of female directors on corporate performance using a sample of 395 listed nonfinancial companies of Karachi Stock Exchange (KSE) Pakistan from 2004 to 2009. Estimated results indicate that ratio of female directors is negatively related with firm performance.

Keywords

References

  • Adams, R. B. & Ferreira, K. (2009). Women in the boardroom and their impact on governance and performance. Journal of Financial Economics, 94, 291–309.
  • Ahern, K. R. & Dittmar, A. K. (2010). The changing of the boards: The value effect of a massive exogenous shock, working paper, Ross School of Business, University of Michigan.
  • Baysinger, B. D. & Zardkoohi, A. (1986). Technology, residual claimants, and corporate control. Journal of Law , Economics, and Organization, 2, 339-349.
  • Becker, G. S. (1964). Human Capital , 1st ed. (New York: Columbia University, Press for the National Bureau of Economic Research).
  • Bilimoria, D. & Piederit, S. K. (1994). The relationship between women corporate directors and women corporate officers. Journal of Management Issues , 18(1), 47-61.
  • Campbell, K. & Minguez-Vera, A. (2008). Gender diversity in the boardroom and firm financial performance. Journal of Business Ethics , 83, 435-51.
  • Carter, D. A., Simkins, B. J. & Simpson, W. G. (2003). Corporate Governance, Board Diversity and Firm Value. The Financial Review , 38, 33-53.
  • Dezso, C. L. & Ross, D. G. (2008). Girl power': Female participation in top management and firm performance. Social Science Research Network. http://ssrn.com/abstract=1088182
  • Dobbin, F. & Jiwook, J. (2011). Corporate Board Gender Diversity and Stock Performance: The Competence Gap or Institutional Investor Bias? North Carolina Law Review, 89(3), 809-838.
  • Dwyer, S., Richard, O. C. & Chadwick, K. (2003). Gender Diversity in Management and Firm Performance: The Influence of Growth Orientation and Organizational Culture. Journal of Business Research , 56(12), 1009–1019.
  • Dobbin, F. & Jiwook, J. (2011). Corporate Board Gender Diversity and Stock Performance: The Competence Gap or Institutional Investor Bias? North Carolina Law Review , 89(3), 809-838.
  • Dunn, P. (2011). Diversity in the boardroom: Breaking the gender barrier in Canada. Journal of Management & Governance , forthcoming.
  • Farrell, K. A. & Hersch, P. L. (2005). Additions to Corporate Boards: The effect of gender. Journal of Corporate Finance , 11, 85-106.
  • Hillman, A. J., Cannella, A. A. & Harris, I. C. (2002). Women and radical minorities in the boardroom: How do directors differ? Journal of Management, 28(6), 747-763.
  • Hillman, A. J., Cannella A. A. & Paetzold, R. L. (2000). The resource dependency role of corporate directors: Strategic adoption of board composition in response to environmental change. Journal of Management Studies , 37, 235-255.
  • Hussein, K. & Kiwia, B. (2009). Examining the Relationship between Female Board Members and Firm Performance-A Panel Study of US Firms. African Journal of Finance and Management , 4(2).
  • Jurkus, A. F., Park, J. C. & Woodard, L. S. (2010). Women in top management and agency costs, Journal of Business Research , 7-14.
  • Kesner, I. F. (1988). Directors’ characteristics and committee membership: An investigation of type, occupation, tenure and gender. Academy of Management Journal , 31, 66-84.
  • Kang, E., Ding, D. K. & Charoenwong, C. (2010). Investor Reaction to Women Directors. Research Collection Lee Kong Chian School of Business (Open Access). Paper 1761.
  • Ma rkarian, M. & Parbonetti, A. (2007). Firm complexity and board of director composition. Corporate Governance: An International Review , 15(6), 1224-1243.
  • Nielsen, S. & Huse, M. (2010). The contribution of women on boards of directors: Going beyond the surface. Corporate Governance: An International Review , 18(2), 136-148.
  • Peterson, C. A. & Philpot, J. (2006). Women’s roles on U.S. Fortune 500 boards: Director Expertise and Committee Memberships. Journal of Business Ethics , 72, 177-196.
  • Singh, V., Terjesen, S. & Vinnicombe, S. (2008). Newly appointed directors in the boardroom: How do women and men differ? European Management Journal , 26(1), 48-58.
  • Smith, N., Smith, V. & Verner, M. (2006). Do women in top management affect firm performance? A panel study of 2,500 Danish firms. International Journal of Productivity and Performance Management , 55, 569-593.

Downloads

No downloads have been recorded for this article yet. Figures appear here once readers begin downloading the full text.

How to Cite

Mirza, H. H., Mahmood, S., Andleeb, S., & Ramzan, F. (2012). Gender Diversity and Firm Performance: Evidence from Pakistan. Journal of Social and Development Sciences, 3(5), 161-166. https://doi.org/10.22610/jsds.v3i5.698

Share this article

Section

Research Paper

Published

2012-05-15

Submissions

Have research to publish? Journal of Social and Development Sciences welcomes submissions.

Make a Submission