GENDER DIVERSITY AND CORPORATE FINANCIAL PERFORMANCE: EVIDENCE FROM LISTED NIGERIAN CONSUMER AND INDUSTRIAL GOODS FIRMS

  • Adeolu Abata MATTHEW
  • Omoregbee GODWIN
  • Deborah Suarau OLUWATOYIN
Keywords: Board Independence, Gender Diversity, financial performance

Abstract

In recent years, there has been a growing interest among researchers and business leaders in understanding the impact of gender diversity on firm’s performance. This study examines the effect of gender diversity on financial performance of listed fast-moving consumer and industrial goods firms quoted in Nigeria as of December 2022. The predictor, Gender diversity was proxied by percentage of women directors on the board, percentage of women directors on the audit committee and board independence. While the predicted variable performance was proxied by Asset efficiency ratio. The study scope included a sample of 16 companies drawn from consumer and industrial goods firms quoted on the Nigerian stock exchange and the robust fixed effect regression was the data analysis tool. The study found a negative and statistically significant effect between gender diversity variables and company's performance [b=-0.340,p=0.012&b=-0.259,p=0.001]while board size was found to have a statistically insignificant influence on financial performance[b=-0.139,p=0.964]. The study concludes that gender diversity on the board and audit committee diminishes the financial performance of listed fast-moving consumer and industrial goods firms quoted exchange, and recommends among others that the board of the fast-moving consumer and industrial goods firms quoted in Nigeria should ensure a well-diversified board and audit committee.

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Published
2023-12-26