GENDER DIVERSITY ON BOARD AND ITS RELEVANCE TO FIRM PERFORMANCE: A STUDY ON PHARMACEUTICAL INDUSTRY OF BANGLADESH

Keywords: Gender Diversity, Profitability, Board, Pharmaceutical Sector, Bangladesh.

Abstract

The study tries to examine the relationship between gender diversity on the Board and firms' profitability in Bangladesh's Pharmaceutical industry. The study employs a panel data approach with all the Pharmaceutical companies listed under Dhaka Stock Exchanges. The sample period covers eight years from 2012-2019. To conduct the study, Return on Equity and Tobin's Q was taken as a proxy of accounting measure of profitability and market measure of profitability, respectively. The proportion of women on board structure was taken as a proxy for gender diversity. Some other variables: board size, firm age, leverage, and firm size, were incorporated to control the effect of these variables on profitability. The study reveals that gender diversity shows a positive but insignificant relationship with the firm's performance in terms of ROE. The R square of this model was 11.67%. In terms of Tobin's Q, gender diversity exhibited a significant positive relationship with firm performance. The R square of this model was 17%. This implies that the market ascribes a great value to the inclusion of women in board structure since it increases the board structure's independence and profitability.

JEL Classification Codes: C12, F65, L25.

Author Biographies

Hossain Ahmmed Fahad, University of Dhaka, Bangladesh

Post-Graduate

Faculty of Business Studies

University of Dhaka, Dhaka, Bangladesh

Imran Mahmud, University of Dhaka, Bangladesh

Post-Graduate

Faculty of Business Studies

University of Dhaka, Dhaka, Bangladesh

Atkia Nabiha Rahman, University of Dhaka, Bangladesh

Post-Graduate

Faculty of Business Studies

University of Dhaka, Dhaka, Bangladesh

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Published
2022-01-01
How to Cite
Fahad, H. A., Mahmud, I., & Rahman, A. N. (2022). GENDER DIVERSITY ON BOARD AND ITS RELEVANCE TO FIRM PERFORMANCE: A STUDY ON PHARMACEUTICAL INDUSTRY OF BANGLADESH. Asian Finance & Banking Review, 6(1), 1-15. https://doi.org/10.46281/asfbr.v6i1.1520
Section
Research Paper/Theoretical Paper/Review Paper/Short Communication Paper