Gender Diversity and Firm Value of Listed Deposit Money Banks in Nigeria

Abstract

Gender diversity on the board provides legitimacy to the firm in its environment and beyond its immediate environment. It also provides the board with a resource of personalities to aid deliberations and effective decision making. This current study investigates the influence of gender diversity on the firm value of Nigeria's listed deposit money banks. Using the census sample technique, the Ex post-facto research design was employed with a sample of 13 listed Deposit Money Banks (DMB). The article draws secondary data from the annual audited financial statement of the DMB spanning from 2011 to 2020. Data were analyzed using descriptive statistics and panel data regression. The results revealed that gender diversity variables, female board composition, and female board audit committee had a statistically insignificant negative effect on firm value. However, the female Chief Executive Officer (CEO) showed a negative and significant impact on firm value. It implies that there exist weak selection criteria for the female CEO. The study, therefore, recommended that attention be focused on the requirements for the selection, recruitment and appointment of the Female CEO, female board member and female board audit committee members. The listed DMB regulatory bodies ensure the creation of a database of qualified, experienced and competent female personnel from which the banks can leverage for recruitment.