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Board Gender Diversity, Firm Performance and Risk-Taking: The Case of Non-Financial Firms of Pakistan

Author

Listed:
  • Raheel Mumtaz

    (Assistant Professor, College of Commerce, Government College University, Faisalabad, Pakistan)

  • Muhammad Farooq Rehan

    (Assistant Professor, College of Commerce, Government College University, Faisalabad, Pakistan)

  • Quaisar Ijaz Khan

    (Assistant Professor, College of Commerce, Government College University, Faisalabad, Pakistan)

  • Rubab Zaidi

    (M.Phil Scholar, College of Commerce, Government College University, Faisalabad, Pakistan)

Abstract

This paper examines the influence of board gender diversity on firm performance and risk taking. We employed the panel data of seventy-five non-financial firms of KSE-100 index listed in the Pakistan Stock Exchange. The data consists of 2005-2018 period. Results of panel regression reveal that board gender diversity have adverse influence on the firm performance i-e Tobin’s Q and return on assets. Moreover, it further provides that board gender diversity has decrease the firm’s risk-taking i-e insolvency risk. Overall, the inclusion of females in the boardroom reduces the financial performance and decrease the risk-taking of non-financial firms in Pakistan. This study provides the managerial and practical implications in compliance with SECP Act of 2017, to include the females in boardroom to discourage the risk-taking behavior of firms.

Suggested Citation

  • Raheel Mumtaz & Muhammad Farooq Rehan & Quaisar Ijaz Khan & Rubab Zaidi, 2021. "Board Gender Diversity, Firm Performance and Risk-Taking: The Case of Non-Financial Firms of Pakistan," iRASD Journal of Economics, International Research Alliance for Sustainable Development (iRASD), vol. 3(3), pages 354-367, December.
    • Handle: RePEc:ani:irdjoe:v:3:y:2021:i:3:p:354-367
    DOI: 10.52131/joe.2021.0303.0050
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    References listed on IDEAS

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