EFFECT OF BOARD GENDER DIVERSITY ON FINANCIAL PERFORMANCE OF QUOTED DEPOSIT MONEY BANKS IN NIGERIA
John Abuh Oyidih, S.A.S Aruwa, PhD and Mohammed Akaro Mainoma, PhD
Volume 3 Issue 2
Abstract
The monitoring role of the board of directors is a critical corporate governance control mechanism, especially in countries like Nigeria where external control mechanisms are less well developed. The gender attribute of the board affects the quality of this monitoring role and hence the financial performance of the firm. This study therefore examines the effect of gender diversity on financial performance of quoted deposit money banks in Nigeria. The population comprises of all the deposit money banks in Nigeria while thirteen (13) quoted deposit money banks were sampled, based on their being listed on the Nigerian Exchange Limited all through the study period, 2010 to 2021. The data were analysed using Shapiro-Wilk Normality, Pearson correlation, Heteroskedasticity Breusch-Pagan Test, Hausman specification test and Breusch-Pagan Lagrangian Multiplier Test while hypotheses were tested using robust random effect regression model. The results show that gender diversity (GD) has a significant positive effect on financial performance of quoted deposit money banks in Nigeria for the period under review. The study recommends that the owners and regulators of deposit money banks in Nigeria should increase the number of women gender on their boards to about 45% to enhance their financial performance. Keywords: Gender Diversity, Return on Assets, Listed Deposit Money Banks, Financial Performance
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