Corporate Board Gender Diversity and Financial Performance of Listed Building Materials Companies in Nigeria
- July 25, 2018
- Posted by: RSIS
- Category: Social Science
International Journal of Research and Innovation in Social Science (IJRISS) | Volume II, Issue VII, July 2018 | ISSN 2454-6186
SABO Usman
Abstract: – The study examines the impact of corporate board gender diversity on financial performance of listed building materials companies in Nigeria. The population of the study comprises of 12 listed building materials companies in Nigeria out of which 9 companies are selected to be the sample of the study. The multivariate regression is used in analyzing the data. The findings of the study disclose that board gender has negative and insignificant impact on financial performance. The age of the companies which is the control variable has positive and significant impact on financial performance. The study recommends that the listed building materials companies in Nigeria should appoint more than one (1) female in the board of directors. These recommendations could be implemented by issuing an improved code of corporate governance by the Central Bank of Nigeria and Nigeria Security and Exchange Commission.
Keywords: Board Gender, Financial performance, Building Materials, Nigeria, Central Bank of Nigeria, Nigeria Security and Exchange Commission.
I. INTRODUCTION
As women become increasingly present in areas and domains traditionally dominated by men, attention focuses on the relatively small proportion of women in senior management positions of companies. The global debate on this matter is intensifying and there is not an easy way to explain why gender diversity matters. Scholars and professionals have long argued that women have distinctive and particularly effective management skills. Several public institutions have become more vocal in supporting increase participation of women in leadership roles in organizations (Bianchi & Latridis, 2014).
In the same vein, the presence of women on the board of directors promotes the performance of the firms because there must be a new approach to issues brought before the board of directors (Matlala, 2011). The gender diversity provides new ways of thinking, skills, ideas, and motives and promotes independent of the board of directors.
