THE ROLE OF FEMALE JOB CHARACTERISTICS ON THE RELATIONSHIP BETWEEN BOARD GENDER DIVERSITY AND FIRM PERFORMANCE: AN INSIGHT FROM LISTED FIRMS OF PAKISTAN

Abstract

This study aims to investigate the relationship between board gender diversity and firm performance in the context of Pakistan. The goal of this study is also to test the gender diversity with different roles on firm performance, i.e., CEO females and females other than CEO i.e., executive females and non- executive females. The sample for analysis is taken from non-financial firms listed on the Pakistan Stock Exchange (PSX) for the period of 2013 to 2022. Several estimate techniques, including pooled ordinary least square (OLS), fixed effects (FE), two steps systems generalised method of moment (GMM), and propensity score matching (PSM), are used in this study. Analysis of this study show that presence of female directors in the board increases firm performance which is consistent with resource-based theory. These findings remain consistent after incorporating the additional board level control variables and alternative definition of firm performance. However, the positive relationship between gender diversity and firm performance is more pronounced when female holds the CEO position. This work also proposes potential directions for future research. The study's conclusion is beneficial among investors, managers, and directors regarding the impact of gender diversity on organizations performance.

Key words: Gender diversity, CEO, Firm Performance, Endogeneity, Pakistan.