Female representation on the boards of directors of non-financial companies

Abstract

This study offers new insights to help improve our understanding of the impact of female representation on firm performance, as measured by return on assets (ROA) and return on equity (ROE) and using non-financial institution data from Jordan. The study utilizes a lagged dependent variable in the regression models by employing the generalized method of moments (GMM) for dynamic panel analysis of the panel data of 77 companies over the period 2008-2018. The results of the regression analysis reveal that leverage, board size, and firm size were positive and statistically significant, while the age of the firm was statistically significant but had a negative effect, which indicates the existence of a relationship between these variables and the performance of Jordanian companies. However, the results fail to show any effect of the impact of female representation on firm performance as measured by return on assets and return on equity. This finding might be attributed to the low representation of females on non financial institution boards, which was only 3.63%, a very low figure compared to that of males on Jordanian boards. Therefore, our results are valid only for Jordanian firms and cannot be generalized to ones in other countries, which might have different cultural and legal perspectives.

Do bank managers use securitization gains to smooth earnings in the post- FAS 166/167 period?

“…However, it must be noted the results are novel and thus contribute to body of knowledge. Several scholars failed to find any significant results (see (Ekadah & Mboya, 2011;Gallego-Álvarez et al, 2010;Marashdeh et al, 2021;Musa et al, 2020;Satria et al, 2020;Suherman et al, 2021;Siagbian, 2018;Zaid et al, 2020).…”

“…He saw a positive significant impact. Marashdeh et al (2021) used 77 companies in Jordan to assess the tie between female directors and firm financial performance. They failed to see any effect between the two variables.…”

“…However, in some others empirical investigations, women directors are not good for corporation bottom-line (Adnan et al, 2013;Aladejebi, 2021;Mirza et al, 2012). Still, others failed to find any significance at all (Ekadah & Mboya, 2011;Gallego-Álvarez et al, 2010;Marashdeh et al, 2021;Musa et al, 2020;Satria et al, 2020;Suherman et al, 2021;Siagbian, 2018;Zaid et al, 2020). These different studies create practical, empirical, methodological, sectoral, geographical gaps, etc., that require further interrogation.…”

Ownership Structure and Bank Performance in Emerging Market Economy: Evidence From Nigerian Listed Deposit Money Banks

“…In addition, we used EPS growth rate and dividend yield. Two control variables bank size and firm age, have been frequently used in many previous studies (Chunhachinda & Li, 2014; Marashdeh et al, 2021). In addition, the loan-to-deposit ratio, non-performing loans-to-total loans ratio, and bank functional diversification proxy by the non-interest income-to-gross income ratio were introduced as control variables in this study.…”