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Gender diversity and financial performance in an emerging economy: empirical evidencefrom India

Author

Listed:
  • Santi Gopal Maji
  • Rupjyoti Saha

Abstract

Purpose - This paper aims to examine the impact of gender diversity both at operational and leadership levels on the financial performance of firms in India. Design/methodology/approach - The study is based on a panel data set of 100 large Indian corporate firms. This study uses the Blau index and Shannon index to compute gender diversity. First, this paper uses system generalized method of moments model to deal with the potential endogeneity issue in the association between gender diversity and firm performance. Second, to unveil heterogeneity in such a relationship, the study applies panel data quantile regression model. Finally, the study adopts a generalized estimating equation model to investigate such relationships for group affiliated and standalone firms. Findings - This study finds a significant positive impact of workforce gender diversity and board gender diversity on the financial performance of firms. Further, the results of the quantile regression model indicate that the impact of gender diversity (workforce and board) on firm performance is more pronounced at higher quantiles of the conditional distribution of firm performance. However, the study fails to extricate any significant impact of audit committee gender diversity on firm performance. Finally, the study also finds a significant positive impact of gender diversity at both workforce and board level for a group affiliated, as well as standalone firms. Originality/value - The present study makes a novel contribution to the extant literature on the association between gender diversity and financial performance of firms by examining such diversity at both operational and leadership levels in the context of an emerging country such as India that captures the complex realities pertaining to gender issues. Further, the study contributes to the empirical literature regarding the heterogeneous impact of gender diversity on firm performance in the Indian context.

Suggested Citation

  • Santi Gopal Maji & Rupjyoti Saha, 2021. "Gender diversity and financial performance in an emerging economy: empirical evidencefrom India," Management Research Review, Emerald Group Publishing Limited, vol. 44(12), pages 1660-1683, July.
    • Handle: RePEc:eme:mrrpps:mrr-08-2020-0525
    DOI: 10.1108/MRR-08-2020-0525
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    Citations

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    Cited by:

    1. Sean Simoes & Anant Talaulicar & Alain Verbeke, 2025. "Mandating a common language in the multinational enterprise: The case of Cummins in India," Asian Business & Management, Palgrave Macmillan, vol. 24(2), pages 187-217, April.
    2. Neharika Vohra & Kashika Sud & Chayanika Bhayana, 2026. "Gender Diversity and Inclusion on Indian Boards: Post the Introduction of the Mandate in 2015 and 2019," Business Perspectives and Research, , vol. 14(1), pages 75-99, January.
    3. Gaurav Mitra & Vandana Gupta & Gaurav Gupta, 2025. "A systematic literature review on the determinants of corporate governance for firm performance: evidence from India," International Journal of Disclosure and Governance, Palgrave Macmillan, vol. 22(4), pages 941-990, December.
    4. Magdalena ZioÅ‚o & Elżbieta Szaruga & Anna Spoz, 2023. "Financial and non–financial factors in companies’ adaptation process towards sustainability and sustainable business models," Journal of Entrepreneurship, Management and Innovation, Fundacja Upowszechniająca Wiedzę i Naukę "Cognitione", vol. 19(4), pages 48-82.
    5. Santi Gopal Maji & Meghna Bharali Saikia, 2025. "Greenhouse Gas Emissions and Firm Performance in India: The Moderating Role of Environmental Sensitivity," Jindal Journal of Business Research, , vol. 14(2), pages 226-243, December.
    6. Kenan Ilarslan & Tugrul Bayat, 2024. "Contribution of Finance and Transport Indicators on Carbon Emissions: Evidence from Eurasian Countries," Istanbul Journal of Economics-Istanbul Iktisat Dergisi, Istanbul University, Faculty of Economics, vol. 73(74-1), pages 121-157, June.
    7. Rudra P. Pradhan & S. M. R. K. Samarakoon & Rana P. Maradana & Premjit Sahoo, 2025. "Climate change disclosure and firm value in a frontier market: Exploring the determinants," Natural Resources Forum, Blackwell Publishing, vol. 49(2), pages 1931-1964, May.

    More about this item

    Keywords

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    JEL classification:

    • G30 - Financial Economics - - Corporate Finance and Governance - - - General
    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance
    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination

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