The effect of women director on banks performance: Evidence from Pakistan

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Seema Chandani
Mashal Mabood
Waqas Mahmood

Abstract

Code of Corporate governance around the globe encourage the appearance of women in corporate board. The objective of this research is to observe the association between board gender diversity and its effects on bank performance which is based on evidence of Pakistan. The sample of this research comprises of 10 listed banks of Pakistan. Secondary data has been collected of 12 years from 2005 to 2016. Bank financial performance is measured through ROA and ROE. Analysis is done through descriptive statistics and linear regression are applied on the data through different tests such as Heteroscedasticity, Stationary of the data, Multicollinearity is tested through Dickey fuller and Augmented Dickey fuller approaches. The study summarizes that there is an insignificant association between board gender diversity and banks performance in Pakistan, it concludes that this study does not support the developed hypothesis that woman on board has insignificant effect on bank financial performance. The finding of this study recommends to use a large sample of banks with difference methodologies such as surveys, case studies and qualitative research to find out the causes of the question that why the women on board decreasing the financial performance.

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