Board Gender Diversity and Firm Value: Do Women on Boards Make a Difference?

Authors : Yasemin Altinyay, Muzaffer Aydemir, Onur Tugman

Pages : 137-167

Doi:10.62393/aurum.1678616

View : 76 | Download : 27

Publication Date : 2025-06-30

Article Type : Research Paper

Abstract :Gender diversity at the board level plays a vital role in shaping strategic decisions and governance outcomes in global corporations. As one of the most visible and measurable dimensions of diversity, gender representation has attracted increasing academic and institutional interest in recent years. This study investigates the relationship between board-level gender diversity and financial performance among global firms, focusing specifically on the financial sector. The analysis draws on cross-sectional data from 326 international financial institutions included in the 2022 Forbes Global 2000 list. Employing both correlation and multiple regression analyses, the study explores how female board representation correlates with key financial indicators, such as Return on Equity (ROE), Return on Assets (ROA), and market value. The results suggest that greater female participation on boards is positively associated with higher ROE, while the effects on ROA and market value appear to be weaker. These findings offer empirical support for enhancing gender diversity in corporate governance frameworks.
Keywords : Gender Diversity, Women on Boards, Corporate Governance, Firm Performance, Market Value, Upper Echelon Theory

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