Abstract
The study analyses the impact of female representation on boards of top Indian firms and examines its impact on the financial as well as Intellectual Capital (IC) performance of these firms. A sample representing firms across different industries is studied for a five year period from FY 2014-15 to 2018-19. The data is analyzed using panel regression wherein BLAU’s Index, Shannon’s Index of gender diversity and percentage of independent women directors is taken as explanatory variables. The financial performance is measured using Return on Assets (ROA) and Average Turnover of Assets (ATO). The IC performance is measured using Value added intellectual capital (VAIC) and its sub-components viz. Human Capital Efficiency (HCE), Capital expended Efficiency (CEE) and Structural Capital Efficiency (SCE). The results of the study show a highly significant relationship between gender diversity, independent women directors and other board characteristics with ATO. Whereas, IC performance results are clear indication that at existing levels of women representation, gender diversity or IWD is not showing any specific and strong impact. The result for IC sub-components is mixed.
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