Impact Of Board Gender Diversity On Firm Risk: Evidence From Pakistan
Abstract/Description
This paper investigates the extent to which female board directors affect leverage and capital allocation efficiency. We examine the percentage of female board directors in the listed companies of Pakistan and find that they significantly reduce the leverage of the firm; however, a female board director ability to influence capital allocation efficiency is not significantly correlated with each other and can be influenced by the senior decision-making environment in the firm. We applied 2SLS and GMM to verify the relationship results obtained for leverage and capital allocation efficiency. The results were based on fixed year effects and robust standard errors. Our work contributes to the literature by examining the increase in the proportion of female board directors with leverage and capital efficiency in an emerging market like Pakistan especially after the passing of corporate governance act in 2017 by SECP.
Track
Finance
Session Number/Theme
4A: Finance
Session Chair
Dr. Saqib Sharif ; Dr. Mujeeb Bhayo
Start Date/Time
31-5-2024 9:00 AM
End Date/Time
31-5-2024 10:30 AM
Location
MCS – 3 AMAN CED Building
Recommended Citation
Shakeel, S. (2024). Impact Of Board Gender Diversity On Firm Risk: Evidence From Pakistan. 3rd IBA SBS International Conference 2024. Retrieved from https://ir.iba.edu.pk/sbsic/2024/program/43
COinS
Impact Of Board Gender Diversity On Firm Risk: Evidence From Pakistan
MCS – 3 AMAN CED Building
This paper investigates the extent to which female board directors affect leverage and capital allocation efficiency. We examine the percentage of female board directors in the listed companies of Pakistan and find that they significantly reduce the leverage of the firm; however, a female board director ability to influence capital allocation efficiency is not significantly correlated with each other and can be influenced by the senior decision-making environment in the firm. We applied 2SLS and GMM to verify the relationship results obtained for leverage and capital allocation efficiency. The results were based on fixed year effects and robust standard errors. Our work contributes to the literature by examining the increase in the proportion of female board directors with leverage and capital efficiency in an emerging market like Pakistan especially after the passing of corporate governance act in 2017 by SECP.
