Towards Corporate Financial Performance: What is the Role of Board Gender Diversity?

Abstract

This study seeks to analyse the influence of board gender diversity in influencing the firm financial performance using the agency theory, resource dependency theory and human capital theory in the study. The study population is the forty-nine (49) banks licensed by Bank of Tanzania (BOT) as at December 2022. The study used purposive method of sampling technique and only listed banks were selected as study sample. The study used panel data from listed banks in the Dar es salaam Stock Exchange (DSE) market for the period of ten (10) years from 2013 to 2022. Our study has used secondary data through bank’s annual audited reports extracted from their specific websites and DSE website. Our study used both descriptive and inferential analysis where data collected were analysed by using the STATA 15. The study used return to asset (ROA) as dependent variable and female director education, female director tenure and female director leadership as independent variables. Our results show that female directors on the boardroom with consideration of demographic features of education, tenure and leadership does not significantly influence financial performance of firms. Furthermore, our study recommends further researchers to measure the non-financial influence that female directors may have on firms.