Women in Top Management: Performance of Firms and Open Innovation

Safdar Husain Tahir,Nausheen Syed,Muhammad Rizwan Ullah,Gulzar Ahmad,Alia Qadir

doi:10.3390/joitmc7010087

Abstract

The lack of women’s presence in firms’ top management positions reflects gender equity problems, especially in South Asia, including Pakistan, and contours a firm’s financial behavior. Based on the underpinning of the conceptual framework developed by a combination of fourteen femininity theories, the current study investigates women’s induction in top management and its impact on a firm’s financial behavior. We collected data from annual reports of 60 non-financial firms listed at the Pakistan Stock Exchange (PSX) for 2013–2019. The study uses the return of assets (ROA), firm’s stability (FSTB), and risk-taking behavior (RTB) as dependent variables. Meanwhile, board gender diversity (BGD), female CEO (FCEO), female director-general (FDG), and female in audit committee (FIAC) are taken as independent variables. A multiple regression diagnostics approach is applied to analyze the data. The study reveals the positive impact of BGD on ROA and FSTB. However, this effect is adverse to RTB. The FIAC shows a positive (negative) impact on ROA (RTB). It also finds a negative impact of FCEO and FDG on ROA and FSTB.

Highlights

Femininity has received substantial attention from researchers during the previous decades
This study explores FFB by adding two variables: firm stability (FSTB) and risk-taking behavior (RTB)
The sample of the study consists of 60 non-financial firms listed at the Pakistan Stock Exchange (PSX)

Summary

Introduction

Femininity has received substantial attention from researchers during the previous decades. Gender diversity by focusing on women directors’ relationship and firm performance [1,2]. These studies provide mixed results, some studies find beneficial impacts while some studies evidence no effect or even negative effect. [3] claims that women directors do not necessarily enhance firm profitability, but their presence may increase the board’s monitoring function. They posit that women on boards serve on monitoring the board committees, and their existence enhances board meetings’ overall attendance.

Objectives

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Conclusion