EFFECT OF BOARD OF DIRECTORS GENDER DIVERSITY ON FINANCIAL PERFORMANCE OF DEPOSIT MONEY BANKS IN NIGERIA

Musa Bukar, Jerry Samuel Musa (PhD), Abdulrasheed Ahmed

Abstract


The financial scandals that engulfs the Nigerian Banking industry in late 2000, was mainly attributed to corporate governance failures and its attendant consequences has created a vacuum for studies to be undertaken. This study looks at how gender diversity (particularly women representation) affect performance of Nigerian banks from 2011 to 2015. The population and sample is made up of 16 (sixteen) banks listed on Nigerian Stock Exchange within the period. Board gender diversity was operationalized using 3 variables (that is women on board- WOB; women on board percentage-WBF; and presence of female chief executive- CEO) which formed the independent variables while financial performance has 2 variables (return on asset- ROA and return on equity- ROE). The study revealed that gender diversity has a significant positive effect on ROA and has no any effect on ROE. It therefore, recommend increase in number of women on board of directors, even though that skepticism exist towards policies that aims at increasing or encouraging women to such position in developing countries like Nigeria. Either due to cultural, social or religious alignment.


Keywords


gender diversity; performance; return on asset; return on equity; banks; women on board.

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References


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