This paper aims to investigate the relationships between gender diversity and performance of profit loss sharing accounts.
The authors use a generalized method of moments model on the data of 34 Islamic banks operating in the GCC region for the period 2010–2021 to estimate the empirical results.
The findings show that the presence of female directors affects positively and significantly the investment deposit returns. However, board size has a negative and significant impact on return paid to investors. Consequently, banks with small boards are more active and productive and they are better able to offer a competitive return compared to the large boards. Besides, the presence of independent non-executive directors on the board affects negatively the performance of investment account but with no significance.
This study provides some insights that may help government and policymakers to making better decisions regarding the combination of policies and rules to enhance women participation and power on the board. Thus, gender diversity policies, gender quotas for publicly listed firm and the supervision of the effectiveness of gendered practices it becomes necessary.
Women continue to face barriers to achieving equality. Over the last years, they have gained increased access to business careers, which in turn enabling them to enhance equal rights. In addition, given the distinctiveness financial product of Islamic banks and the particular model of management of asset–liability, this research contributes to the prior literature by providing new evidence on the effect of gender diversity on performance of investment deposit accounts.
