Boards’ Gender Mix as a Predictor of Financial Performance in Nigeria: An Empirical Study

Abstract

This study investigates the predicting power of a board's gender mix on financial performance by using a cross sectional data analysis. Existing literature on this subject is scanty in emerging economies and to the best of the authors' knowledge; this is the first of its kind in the Nigerian context. Return on capital employed was utilized as measure for financial performance while female director presence and proportion of female directors were proxies for gender mix. The findings show that both female director presence and proportion have positive impacts on financial performance while the board size, a control variable had a neutral effect. The study recommends that managerial and legislative efforts be made to strike a fair gender balance in boards and further research be carried out along this line. [PUBLICATION ABSTRACT]