The Impact of Board Gender Diversity on Financial Performance of Listed Firms in Tanzania: A Panel Analysis
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Date
2023-04-24
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Publisher
INTERNATIONAL JOURNAL OF RESEARCH IN BUSINESS AND SOCIAL SCIENCE
Abstract
This study seeks to determine whether gender diversity in the boardroom improves the financial
performance of listed firms in Tanzania by examining theoretical and empirical findings and using 90
firm-year observations of 15 listed firms over six years from 2016–2021 from firms listed at the Dar es
Salaam Stock Exchange (DSE). Return on equity (ROE) and Return on asset (ROA) were used as
financial performance metrics. This study uses a balanced panel data analysis. The results showed that
there was no statistically significant relationship between the percentages of women directors on
boards or in executive roles and the financial performance of listed firms in Tanzania as measured by
ROA and ROE. The results are inconsistent with theories of agency and resource dependence. The
study is restricted to a sample of listed firms from DSE in Tanzania. The scope of future studies should
be expanded to include listed firms across the East African region and more explanatory variables
such as the Blau index in measuring boardroom gender diversity.
Description
Keywords
Board Gender Diversity, Listed Firms, Agency Theory, Resource Dependence Theory