A Board Gender Diversity and Firm Performance: An Evaluation of the Nigerian Banking Industry

DATE PUBLISHED
June 4, 2018
SECTION
Articles

Abstract

This is a brief account of research undertaken for a dissertation, A Board Gender Diversity and Firm Performance: An Evaluation of the Nigerian Banking Industry, submitted to the School of Accounting, Finance & Economics Leeds Business School, Leeds Beckett University in 2017 for the degree of M.Sc. Accounting. The dissertation was aimed at analysing the impact of presence of female board members on the profitability of banks in Nigeria. The study collected secondary data from annual reports and accounts of 11 sampled banks and analysed the data using multiple regression. The findings of the study suggested that the Return on Equity of the banks in Nigeria are not affected by the number of female Board Members of the bank, neither does their interest holdings in the banks or their positions on the boards. Therefore, the researcher recommends that existing or past female Board members of banks in Nigeria should make their presence impactful on the performance of the banks, by encouraging more female Board members given that the current number of women in the boards may not be large enough to make the figures significant.

Keywords

.

References

Abiola, H. (2004, April 18). It is challenging to be a woman. Nigerian Sunday Punch Newspaper, p. 23.

Adler, R. (2001). Women in the Executive Suite Correlate to High Profits . Harvard Business Review.

Akinyomi, O. J., & Olutoye, E. A. (2014). Effect Of Board Gender Diversity On Banks’ Profitability In Nigeria. International Journal of Physical and Social Sciences, 4(10).

Bart, C., & Bontis, N. (2003). Distinguishing Between the Board and Management in Company Mission: Implications for Corporate Governance. Journal of Intellectual Capital, 4(3), 361–381.

Biggins, J. V. (1999). Making Board Diversity Work. Corporate Board, 20(117), 11–17.

Campbell, K., & Minguez-Vera, A. (2008). Gender diversity in the boardroom and firm financial performance. Journal of business ethics, 83(3), 435–451.

Carter, D. A., Simkins, B. J., D‟Souza, F., & Simpson, W. G. (2002, March). Corporate governance, board diversity, and firm value. Oklahoma State University Working Paper, pp. 1-36. Retrieved April 26, 2017, from

http://ssrn.com/abstract=304499

Dutta, P., & Bose, S. (2006). Gender Diversity in the Boardroom and Financial Performance of Commercial Banks: Evidence from Bangladesh. The Cost and Management, 34(6), 70-74.

Eagly, A. H. (2007). Female leadership advantage and disadvantage: Resolving the contradictions. Psychology of Women Quarterly, 31(1), 1-12. Retrieved from

https://www.scholars.northwestern.edu/en/publications/female-leadership-advantage-and-disadvantage-resolving-the-contra-2

Eisenhardt, K. M. (1998). Agency Theory: An Assessment and Review. Academy of Management Review, 14(1), 57–74.

Ekadah, J. W., & Josphat, M. (2012). Effect of Board Gender Diversity on the Performance of Commercial Banks in Kenya. European Scientific Journal, 8(7), 128-148.

Ekadah, J. W., & Mboya, J. (2009). Effect of Board Gender Diversity on The Performance of Commercial Banks in Kenya. European Scientific Journal, 8(7), 128-148.

Farrell, K. A., & Hersch, P. L. (2005). Additions to corporate boards: the effect of gender. Journal of Corporate Finance, 11, 85–206.

Fondas, N., & Sassalos, S. (2000). A Different Voice in the Boardroom: How the Presence of Women Directors Affects Board Influence over Management. Global Focus, 12(2), 13–22.

Hendry, K., & Kiel, G. C. (2004). The Role of the Board in Firm Strategy: Integrating Agency and Organisational Control Perspectives. Corporate Governance: An International Review, 12(4), 500–520.

Hermalin, B. E., & Weisbach, M. S. (1998). Endogenously Chosen Boards of Directors and Their Monitoring of the CEO. American Economic Review, 88(1), 96–118.

Hillman, A. J., Cannella, J. A., & Paetzold, R. L. (2000). The resource dependent role of corporate directors: Strategic adaption of board composition in response to environmental change. Journal of Management Studies, 37, 235 – 255.

ILO. (2008). Global employment trends for women brief. Geneva: International Labour Organization.

Jacka, M. J., & Keller, P. J. (2002). Business Process Mapping – Improving Customer Satisfaction. New York: John Wiley & Sons, Inc.

Johansen, M. A., & Marius Javier Sandnes. (2008). Gender Equality in the Boardroom: The Norwegian Case of Rosa Parks? Norges Handelshøyskole, Finance And Management Science. Bergen: Norges Handelshøyskole.

Keasey, K., Thompson, S., & Wright, M. (1997). Corporate Governance: Economic, Management, and Financial Issues. Oxford: Oxford University Press.

Kemp, S. (2006). In the Driver’s Seat or Rubber Stamp? The Role of the Board in Providing Strategic Guidance in Australian Boardrooms. Management Decision , 44(1), 56–73.

Marinova, J., Plantenga, J., & Remery, C. (2010). Gender diversity and firm performance: Evidence from Dutch and Danish boardrooms. Discussion paper, Utrecht School of Economic, University of Utrecht. Utrecht: University of Utrecht.

Milliken, F. J., & Martins, L. (1996). Searching for Common Threads: Understanding the Multiple Effects of Diversity in Organizational Groups. Academy of Management Review, 21(2), 402.

Ngwakwe, J. (2002). Realizing Women’s Economic, Social, and Cultural Rights: Challenges and Strategies in Nigeria. Canadian Journal of Women and the Law , 14(1), 142-157.

Nweze, C. (2013, 12 11). Women to get 40% of banks’ top positions. The Nation. Retrieved from http://thenationonlineng.net/women-get-40-banks-top-positions/

Olojede, I. (1999). Women Interest Organizations: Encounters with the State on Issues of Good Governance. Kano, Nigeria: Centre for Research and Documentation.

Olurode, L. (1990). Women and Social Change in Nigeria. Lagos: Unity and Research Company.Pearce, J. A., & Zahra, S. A. (1991). The Relative Power of the CEOs and Boards of Directors: Associations with Corporate Performance. Strategic Management Journal, 12(2), 35–153.

Shleifer, A., & Vishny, R. W. (1997). A Survey of Corporate Governance . The Journal of Finance, 52(2), 737-783.

Smith, N., Smith, V., & Verner, M. (2006). Do Women in Top Management Affect Firm Performance? A Panel Study of 2500 Danish Firms. International Journal of Productivity and Performance Management, 55(7), 569-593.

Singh, V., & Vinnicombe, S. (2004). Why so few women in top UK boardrooms? Evidence and theoretical explanations. Corporate Governance: An International Review, 12(4), 479–488.

Vancil, R. (1987). Passing the Baton: Managing the Process of CEO Succession. Boston: Harvard Business School Press.

Van der Walt, N. T., & Ingley, C. B. (2001). Evaluating Board Effectiveness: The Changing Context of Strategic Governance. Journal of Change Management, 1(4), 313-331.

Zelechowski, D., & Bilimoria, D. (2004). Characteristics of Women and Men Corporate Inside Directors in the US. Corporate Governance: An International Review, 12(3), 337–342.

Author Details

ABDUSSALAM, FATIMA YAWO

OKIKE, B. MATTHEW