Board Gender Diversity and Banks Profitability for Business Viability: Evidence from Serbia

Abstract

As an important topic in the field of corporate governance, the influence of the board of directors’ characteristics on the profitability of corporations is examined here. This paper examines the influence of the board of directors’ and chief executive officers’ (CEO) characteristics on the profitability of banks in Serbia. In this study, the characteristics of boards of directors were examined in terms of size and the participation of women, and the characteristics of CEOs were examined similarly in terms of women’s participation. The research was conducted on a sample of 23 commercial banks from Serbia in the period from 2017 to 2021. Profitability was measured by the rate of return on operating assets (ROA) and the rate of return on equity (ROE). The results of the panel regression analysis indicate that the size of the board of directors had a positive impact on bank profitability during the COVID-19 pandemic period, while this impact was not statistically significant before the pandemic. The participation of women on the board of directors did not have a statistically significant impact on bank profitability before or during the COVID-19 pandemic. It has been found that the participation of women as CEOs had a negative impact on bank profitability before and during the COVID-19 pandemic.

The Effect of Credit Risk and Board Diversity on the Performance of Banks Listed on the Indonesian Stock Exchange

“…After doing a hypothesis test, it can be said that the hypothesis that states that board diversity has no bearing on return on assets (ROA) is rejected. This aligns with earlier research by Milojević et al (2023), which found that Return on Assets (ROA) is not significantly affected by Board Diversity. The study also found that women are underrepresented on bank management boards, making it challenging to evaluate and ascertain their contribution to financial effectiveness and performance.…”

“…An increasing number of studies also demonstrate the beneficial effects of gender diversity on a board and on an organization's financial and operational performance. According to research on board diversity conducted by Milojević et al (2023), the presence of women on the board of directors did not significantly affect bank profitability. Board gender diversity, according to Bogdan et al (2023), has shown the beneficial impact of female leader attributes on business development plans and, as a result, on firm success.…”

Concern or Opportunity: Implementation of the TBL Criterion in the Healthcare System

“…The question of economic growth is inseparable from the consideration of renewable energy consumption [40]. The findings of Stamenović [41] indicate that the balanced activities of social value creation and commercialization of effects are the perception of the sustainability strategy of academics and management for the evaluation of business viability, and it is important to observe the structure of the board of directors according to various criteria [42].…”