Title: Does increase in female representation on boards impact banks' value: a case of an emerging economy

Authors: Riyanka Baral; R.L. Manogna; Debasis Patnaik; Aswini Kumar Mishra

Addresses: Department of Economics, BITS Pilani K K Birla Goa Campus, Zuari Nagar, Goa-403726, India ' Department of Economics, BITS Pilani K K Birla Goa Campus, Zuari Nagar, Goa-403726, India ' Department of Economics, BITS Pilani K K Birla Goa Campus, Zuari Nagar, Goa-403726, India ' Department of Economics, BITS Pilani K K Birla Goa Campus, Zuari Nagar, Goa-403726, India

Abstract: This paper aims to study female participation on bank boards and the effect of gender diversity on publicly listed Indian bank's performance. Banks were subdivided into large and small banks based on market capitalisation. Gender diversity is measured using various variables. Return on assets (ROA) and return on equity (ROE) are taken as a proxy to assess bank performance. A balanced panel data set of 20 banks with duration of 2008-2018 was executed to evaluate the relationship between gender diversity and performance of the banks. The result suggests that there is a value addition to the bank due to the existence of a female CEO in large banks and the presence of women on board in small banks. Few banks seem to meet the minimum requirement set by the regulator. These findings bear policy implications for the banking sector. Emphasis should be put on ways for women to undertake roles in top echelons of management which can enhance the framework of corporate governance.

Keywords: corporate governance; banks; performance; gender; board of directors.

DOI: 10.1504/IJBGE.2022.123678

International Journal of Business Governance and Ethics, 2022 Vol.16 No.3, pp.292 - 316

Received: 11 Apr 2020
Accepted: 05 Mar 2021
Published online: 30 Jun 2022 *

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