Women on Board and its Impact on Performance of NIFTY50 Firms

Abstract

This research paper examines the relationship between women representation on Board of Directors and the financial performance of the NSE-NIFTY50 listed firms. The return on assets and assets turnover ratio is used as measure of firm’s performance; using panel regression for a period of 2014-15 to 2018-19, the impact of specific board characteristics including diversity index is assessed. It is observed that the productivity of these firms is clearly affected by the gender diversity. The profitability ratio is not seeing any significant impact. Though there is an overall increasing trend in the representation of women on board in sample firms, just a small proportion of women may not serve the true purpose in affecting the strategic decision making. Therefore, it is suggested that the representation should be more than the mandated number, to see its true impact on firm performance in the long run.