The Impact Of Comprehensive Boardroom Gender Diversity On Firm Financial Performance: A Study Of Psx-100 Index Firms

Abstract

The purpose of the study is to investigate the impact of boardroom gender diversity and prominent characteristics on firm financial performance. The data was collected using the stratified random sample of the Pakistan Stock Exchange (PSX) 100 Index from 2020 to 2024 using the Generalized Method of Moment (GMM) estimation. The results revealed that the proportion of female directors to males significantly positively impacts financial performance. In the same way, the number of female directors on the board plays an essential role in the sense that if there is a single female and two female directors. Furthermore, the female independent director has a weak relationship with the financial performance. The female ethnicity has a partial significant impact. The female experience has an astonishing mix and partial findings. Finally, the study supports that there is a positive impact of female age on financial performance using ROA and ROE as proxies. The findings of the study have theoretical, methodological, and practical implications and have valuable insights into various stakeholders of corporate governance and financial performance.

Keywords: Corporate Governance, Gender Diversity, Gender Characteristics, PSX 100 Index, Pakistan