Relationship between Gender Diversity on Boards and Firm’s Performance - Case Study about ASEAN Banking Sector

Abstract

By using the data collected from 70 largest banks in the ASEAN banking system in period from 2009 to 2013, the authors try to investigate the impacts of gender diversity in the board of managements (BOM) and board of directors (BOD) of corporate business on bank’s performance in ASEAN banking system. Firm’s performance is measured by return on assets (ROA) and return on equity (ROE). This analysis is done through descriptive statistics, correlation test and regression analysis. Research’s result show that both percentages of women on board of managements have a significant and positive impact on firm’s performance while percentage of women on boards of directors has a neutral effect on firm’s performance in Malaysia. Besides, the results in this study is also relevant with total assets which is a control variable had positive impact on firms’ performance. From these findings, this study also suggested that managerial and legislative efforts be balanced gender to more female candidates, on both board of director and top executive, order to gain better corporate governance.