IDEAS home Printed from https://ideas.repec.org/a/aif/journl/v4y2020i6p140-149.html

The Impact of Female Directors on Firm Performance and Financial Reporting Practices: Empirical Evidence from Listed Insurance Companies in Bangladesh

Author

Listed:
  • Shohana Islam Sumona

    (Department of Accounting & information Systems, University of Dhaka, Dhaka-1000, Bangladesh)

  • Shahima Jabin

    (Department of Accounting & information Systems, University of Dhaka, Dhaka-1000, Bangladesh)

  • MD Shuvo Howlader

    (Department of Accounting & information Systems, University of Dhaka, Dhaka-1000, Bangladesh)

Abstract

In Bangladesh, the number of women on board is very low. The purpose of this study is to analyze and examine whether female director representation has any impact on firm performance and firm’s financial reporting practices where reporting practices involve reporting IFRS-4 requirements practices for insurance contract. A simple linear regression model is conducted to examine the two research questions of this study. This study analyzes secondary data from annual reports of all the listed insurance companies in Bangladesh during the period 2017 from Dhaka Stock Exchange. There are two research questions: (1) whether female directors have any impact on firm performance, (2) whether female directors have any impact on firm’s reporting practices. For the first research question the regression result indicates that there is little evidence that female directors have a positive relation on firm performance as the estimation lack significance. And for the second research question the regression result shows that there is negative relation between female director representation and firm’s reporting practices but again the estimation lacks significance. For lack of proper recruitment process for female directors and deficiency of awareness about disclosure reporting, this research fails to exhibit significant results.

Suggested Citation

  • Shohana Islam Sumona & Shahima Jabin & MD Shuvo Howlader, 2020. "The Impact of Female Directors on Firm Performance and Financial Reporting Practices: Empirical Evidence from Listed Insurance Companies in Bangladesh," International Journal of Science and Business, IJSAB International, vol. 4(6), pages 140-149.
    • Handle: RePEc:aif:journl:v:4:y:2020:i:6:p:140-149
    as

    Download full text from publisher

    File URL: https://ijsab.com/wp-content/uploads/561.pdf
    Download Restriction: no
    File URL: https://ijsab.com/volume-4-issue-6/3037
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Ronald C. Anderson & David M. Reeb & Arun Upadhyay & Wanli Zhao, 2011. "The Economics of Director Heterogeneity," Financial Management, Financial Management Association International, vol. 40(1), pages 5-38, March.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Fang, Yiwei & Francis, Bill & Hasan, Iftekhar, 2012. "More than connectedness : Heterogeneity of CEO social network and firm value," Research Discussion Papers 26/2012, Bank of Finland.
    2. repec:bof:bofrdp:urn:nbn:fi:bof-201508181353 is not listed on IDEAS
    3. Abdelrhman Yusuf & Mohamed Sherif, 2020. "All on Board? New Evidence on Board Characteristics from a Large Panel of UK FTSE Indices," Sustainability, MDPI, vol. 12(13), pages 1-26, July.
    4. Shufang Huang & Jin Chen & Liang Mei & Weiqiao Mo, 2019. "The Effect of Heterogeneity and Leadership on Innovation Performance: Evidence from University Research Teams in China," Sustainability, MDPI, vol. 11(16), pages 1-14, August.
    5. Zhou, Yifan & Kara, Alper & Molyneux, Philip, 2019. "Chair-CEO generation gap and bank risk-taking," The British Accounting Review, Elsevier, vol. 51(4), pages 352-372.
    6. El Moujahid, Oussama & Frijns, Bart & Ravid, S. Abraham & Sekerci, Naciye, 2025. "Foreign ownership and board cultural diversity," Journal of Corporate Finance, Elsevier, vol. 92(C).
    7. Yang Chen & Jian Xu, 2022. "The Role of Supervisory Board Heterogeneity on Corporate Irregularity: New Insights and Management Opportunities," Sustainability, MDPI, vol. 14(20), pages 1-16, October.
    8. Arun Upadhyay, 2014. "Social Concentration on Boards, Corporate Information Environment and Cost of Capital," Journal of Business Finance & Accounting, Wiley Blackwell, vol. 41(7-8), pages 974-1001, September.
    9. Wang, Tawei & Hsu, Carol, 2013. "Board composition and operational risk events of financial institutions," Journal of Banking & Finance, Elsevier, vol. 37(6), pages 2042-2051.
    10. Dodd, Olga & Frijns, Bart & Garel, Alexandre, 2022. "Cultural diversity among directors and corporate social responsibility," International Review of Financial Analysis, Elsevier, vol. 83(C).
    11. Stephen Gray & John Nowland, 2017. "The diversity of expertise on corporate boards in Australia," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 57(2), pages 429-463, June.
    12. Chuluun, Tuugi, 2015. "The role of underwriter peer networks in IPOs," Journal of Banking & Finance, Elsevier, vol. 51(C), pages 62-78.
    13. Charles H. Cho & Jay Heon Jung & Byungjin Kwak & Jaywon Lee & Choong-Yuel Yoo, 2017. "Professors on the Board: Do They Contribute to Society Outside the Classroom?," Journal of Business Ethics, Springer, vol. 141(2), pages 393-409, March.
    14. Shoukat Ali & Ramiz ur Rehman & Wang Yuan & Muhammad Ishfaq Ahmad & Rizwan Ali, 2022. "Does foreign institutional ownership mediate the nexus between board diversity and the risk of financial distress? A case of an emerging economy of China," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 12(3), pages 553-581, September.
    15. Matteo Rossi & Serena Galasso & Arturo Capasso, 2017. "Women Do it Better: An Investigation on the Association between Gender Diversity In Board of Directors and the Financial Performance," International Journal of Economics and Financial Issues, Econjournals, vol. 7(6), pages 41-50.
    16. Aggarwal, Raj & Jindal, Varun & Seth, Rama, 2019. "Board diversity and firm performance: The role of business group affiliation," International Business Review, Elsevier, vol. 28(6), pages 1-1.
    17. Bernile, Gennaro & Bhagwat, Vineet & Yonker, Scott, 2018. "Board diversity, firm risk, and corporate policies," Journal of Financial Economics, Elsevier, vol. 127(3), pages 588-612.
    18. Dah, Mustafa A., 2025. "Refreshing boards: Countering CEO entrenchment," Research in International Business and Finance, Elsevier, vol. 75(C).
    19. Peter Jaskiewicz & Joern H. Block & James G. Combs & Danny Miller, 2017. "The Effects of Founder and Family Ownership on Hired CEOs’ Incentives and Firm Performance," Entrepreneurship Theory and Practice, , vol. 41(1), pages 73-103, January.
    20. Irene Wei Kiong Ting & Wei-Kang Wang & Wen-Min Lu & Yun-Jung Chen, 2021. "Do female directors will have impact on corporate performance?," Review of Managerial Science, Springer, vol. 15(3), pages 611-631, April.
    21. Luminita Enache & Antonio Parbonetti & Anup Srivastava, 2020. "Are all outside directors created equal with respect to firm disclosure policy?," Review of Quantitative Finance and Accounting, Springer, vol. 55(2), pages 541-577, August.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:aif:journl:v:4:y:2020:i:6:p:140-149. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Farjana Rahman (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.