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Moderating Effect of Board Gender Diversity on the Relationship between Financial Structure and Operating Efficiency


  • Kalundu Kimanzi
  • Prof. Mirie Mwangi
  • Dr. Duncan Elly Ochieng
  • Prof. Josephat Lishenga


This study aimed at determining the moderating effect of board members’ gender diversity in the relationship between financial structure and operating efficiency of housing co-operative societies. The descriptive cross-sectional research design provided a framework for data gathering. A data collection form that comprised elements of financial structure and operating efficiency, and gender diversity information collected information from audited financial statements, chief executive officers/administrators and board members. Shannon index of diversity was applied to compute indices for gender. Data from 87 housing co-operatives constituting 435 observations yielding a 50.3% response rate were analysed. Data analysis was performed through descriptive statistics, data envelopment analysis and regression analysis. The efficiency scores obtained by DEA were later regressed in the second stage to establish the hypothesized relationship. The findings show that members’ deposit was the only component of financial structure after adding the interaction term contributed to positive changes in operating efficiency. However, the inclusion of the interaction term in the model caused a positive change in adjusted R^2 thus increasing the level of operating efficiency. Keywords: Moderating effect. Board gender diversity. Financial structure. Operating efficiency. Housing co-operative societies. Shannon index.

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  • Kalundu Kimanzi & Prof. Mirie Mwangi & Dr. Duncan Elly Ochieng & Prof. Josephat Lishenga, 2020. "Moderating Effect of Board Gender Diversity on the Relationship between Financial Structure and Operating Efficiency," Journal of Finance and Investment Analysis, SCIENPRESS Ltd, vol. 9(1), pages 1-1.
  • Handle: RePEc:spt:fininv:v:9:y:2020:i:1:f:9_1_1

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