This paper aims to examine the impact of board gender diversity (BGD) on corporate performance (CP) in India. In addition, it also considers the moderating impact of family involvement in business (FIB) on the relationship between BGD and CP.
The study is based on a panel data set of 221 companies listed on NIFTY 500 Index from 2014 to 2023. The analysis has been done through the application of fixed-effects panel data regression. Robustness of the baseline results is checked through the employment of alternative measure of performance, alternative methodology of Bayesian regression and inclusion of independent women directors (I_WD). Finally, the study incorporates instrumental variables with two-stage least squares methodology for addressing potential endogeneity.
The study enriches agency and resource-based theoretical perspectives by upholding a significantly positive impact of BGD on CP. In addition, it highlights that FIB positively moderates this relationship, suggesting that the link between gender diversity on boards and performance is notably stronger within family-owned companies. Furthermore, it also posits that I_WD also positively and significantly impacts CP. The research findings are found to be consistent across diverse robustness tests, affirming their reliability and consistency.
This research makes novel contribution to the literature in examining the association between BGD and CP. This is a pioneering endeavour to examine this relationship after decade-long mandatory appointment of women to board in India. These findings pose important implications for government, lawmakers, corporates, academia and society.
