Board gender diversity and firm performance of listed firms in Ghana

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Date
August, 2015
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Abstract
This study examines the relationship between board gender diversity and firm financial performance of firms in Ghana. The sample consists of 31 listed firms on the GSE over the period 2003-2014 which yields an unbalanced panel data of 290 firms. The objectives of the study is to determine gender composition of listed firms on Ghana Stock Exchange, to examine the effect of female presence on boards on firm performance, to investigate the impact of female presence on audit committee on firm performance and to assess the impact of female executive members of the board on firm performance. After controlling for firm size, board size, industrial dummies, ownership and other corporate governance measures using the pooled OLS and the generalized least squares estimation methods, the study finds a mixed result. Specifically, the study finds a positive and significant relationship between gender diversity as measured by proportion of women on board and firm performance measured by gross profit margin, net profit margin and return on capital employed. The study, however, reports a negative and significant relationship between gender diversity (proportion of women on board) and Tobin‟s Q but finds no significant relationship between proportion of female on board and return on equity. The study again finds no significant relationship between the diversity measure „female executive board members‟ and all five firm performance measures. The study further conclude that there exist no significant relationship between percentage of female on audit committee and performance measured by gross profit margin, Tobin‟s Q, net profit margin, return on capital employed and return on capital employed. The study also confirms assertion that a firm‟s asset size is a good predictor of firm performance. A major policy recommendation is that firms should include women on their boards since they contribute positively to the firm‟s performance.
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A thesis submitted in partial fulfillment for the award of Master of Philosophy in Accounting at the School of Business Of Kwame Nkrumah University of Science and Technology,
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