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Cited by 36Gender Diversity and InequalityCorporate Finance and GovernanceGender Politics and Representation

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Women directors and corporate performance: firm size and board monitoring as the least focused factors

Rahman, Haseeb Ur, Zahid, Muhammad·2021·Gender in Management: An International Journal
DOI 10.1108/gm-12-2019-0252
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Abstract

Purpose: This paper aims to examine the impact of women directors on corporate performance (CP) and the mediating role of board monitoring in their relationship. Design/methodology/approach: The ordinary least squares with panel corrected standard errors are used as a primary estimator along with three other estimators to check the robustness of the estimations and address the potential endogeneity in a stratified random sample of 320 non-financial Malaysian companies listed on Bursa Malaysia (Stock Exchange) between 2010 and 2014. Findings: It is found that women directors on the board not only improve firms’ return on assets but also reduce the volatility of their stocks. However, these findings are more applicable in small firms as compared to large firms. Besides, it is also noted the board monitoring significantly mediates the relationship between women directors and CP. Practical implications: As the monitoring role of women directors improves CP, substantial efforts may be put in to increase their meritorious representation on the boards. The regulators could pay equal attention to the small firms. Additionally, the number of board meetings may also be increased for strengthening the monitoring abilities of the board to improve CP. Originality/value: The study contributes to the existing literature, as little attention has been paid to the mediation of board monitoring in the nexus of women directors and CP in the past.

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Metadata

Authors
Rahman, H. U., & Zahid, M.
Affiliations
  • University of Science and Technology Bannu (PK)
  • City University of Science and Information Technology (PK)
ORCID
Venue
Gender in Management: An International Journal
Publisher
Emerald
Published
2021-05-21
Volume
36
Issue
5
Pages
605-621
ISSN
1754-2413 (ISSN-L)
DOI
10.1108/gm-12-2019-0252
OpenAlex
W3170364055
Cited by
36
References
2
Citations by year
2026: 7 · 2025: 6 · 2024: 10 · 2023: 6 · 2022: 5 · 2021: 2
FWCI
7.34
Type
journal article
Language
en
Open access
closed
Licence
www.emerald.com/insight/site-policies (tdm)
Locations
Gender in Management An International Journal (publishedVersion)
Topics
  • Social Sciences › Gender Studies › Gender Diversity and Inequality
  • Social Sciences › Economics, Econometrics and Finance › Finance › Corporate Finance and Governance
  • Social Sciences › Gender Studies › Gender Politics and Representation
Keywords
female directors, firm performance, board oversight, firm size, board gender diversity, return on assets, stock market volatility, small business, board meetings, mediation, Malaysian listed companies

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