The Effects of Gender Diversity in The Boardroom on Firm Performance among top 50 Listed Companies in Malaysia

Ahmad Syakir Mustaqim, Ahmad Sabri and Ahmad Syubaili, Mohamed and Salawati, Sahari (2020) The Effects of Gender Diversity in The Boardroom on Firm Performance among top 50 Listed Companies in Malaysia. International Journal of Academic Research in Business and Social Sciences, 10 (8). pp. 1044-1054. ISSN 2222-6990

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Abstract

Gender diversity is an important factor in boards because it can contribute to the functioning of boards which could potentially positively influence corporate performance. This paper aims to examine the effect of gender diversity of board members on corporate outcomes to provide guidance to top level managements for increase proportion of women in the boards. This research performs on the sample of top 50 listed corporations in Malaysia from the year 2014 to 2018. Corporate performance is measured using return on assets while percentage of female directors represents gender diversity. The results from OLS regression model reveal that gender diversity is positively related to corporate performance. From these findings, the higher proportion of females in boards can have a substantial impact on the performance of the corporation.Keywords:Gender Diversity, Corporate Performance, Return on Assets.

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