Gender Diversity and Stock Performance: Analysing the Impact of Female Representation in India’s Top 50 Companies

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This research paper explores the relationship between gender diversity on corporate boards and stock performance in the top 50 publicly listed companies on the Bombay Stock Exchange (BSE) over 10 years, from 2014 to 2024. While the review of literature from global markets like France, and specific research into the Indian markets highlight a strong positive correlation between female representation on corporate boards and increasing stock prices, the context of the top 50 companies presents unique challenges and variables that may affect this relationship. Data on stock price performance and the percentage of women on boards was collected from the annual reports of the top 50 companies. When a correlation test was conducted, a minimal statistical correlation between the two variables was found. Scatter plots and correlation coefficients show that despite the increase in the percentage of women on the board due to mandates like the Companies Act 2013, stock price growth, or fall, was largely unrelated to changes in diversity. The report concludes that other factors, such as market forces, industry-specific dynamics, and the strategic roles played by board members, may overshadow the potential financial impact of gender diversity. This inability to prove an empirical correlation suggests that while diversity might be valuable for fostering better governance, it does not necessarily translate to immediate stock price benefits. These findings point to the importance of further research into the qualitative benefits of diversity in corporate offices, and the various confounding factors that could lead to minimal correlation.