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IJSTR >> Volume 9 - Issue 1, January 2020 Edition

International Journal of Scientific & Technology Research  
International Journal of Scientific & Technology Research

Website: http://www.ijstr.org

ISSN 2277-8616

Impact of Female Director on Firm Performance in Emerging Economy

[Full Text]



Shubhanker Yadav, Dr. Anindita Chakraborty



BSE, Corporate Governance, Female Director, Financial Performance, Indian Listed Firm, Panel data econometrics, Companies Act 2013.



This study examines the impact of female director on the firm market based financial performance of listed Indian firms in an econometric modelling approach. Using a firm year unit of analysis, a sample of 60 BSE listed companies across various industries has been studied over a period of twelve financial years, namely FY 2006–2007 to FY 2017–2018. Using panel data analysis, the percentage of female directors on corporate board is taken as the independent variable and firm performance measured by two market based financial performance indicator Q (Tobin's Q) and Mv/Ev (Market Value to Enterprise value, as the dependent variables. The primary results of the study using panel least squares (PLS) and random effects (RE) estimation models point towards a positive and significant correlation between the percentage of female directors and Tobin q. However, results are found to be more strong when Mv/Ev been used as firm financial performance. The findings of the study indicate that the number of companies with no female directors is reducing across the 12 years of study. It may be due to the external pressure created by the new corporate governance code 2013, also, the number of companies with one or more, number of female directors been seen as increasing during the period of study. Still, very few companies can be seen keeping one-third of the director as female director; this could be due to the non-availability of a female director.



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