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VOL. 7, ISSUE 3 (2025)
Theoretical foundations of gender diversity and financial performance
Authors
Dr Vandana Gupta
Abstract
In the last two decades gender diversity has
received much attention in academic research. Gender diversity on boards is a
larger ethical issue and is grounded in providing equal opportunities leading
to enhanced social welfare. Generally, it has been observed that globally women
underrepresent the boards of companies. Women on boards might be able to bring
in different perspectives due to their inherent distinctive differences with
men. We examine the various theories on gender diversity which have come about
in the recent years on explaining the role of women directors on boards of a
company. We also look at the various factors which have an impact on gender
diversity and do a review of prominent research studies highlighting them. Many
countries have enacted mandatory appointment of female directors on boards. We
examine whether such legislation necessarily brings in improvement in corporate
performance or is just a mere tokenism. Finally, we review research whose
findings show that gender diversity has a positive relationship with financial
performance of firms.
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Pages:22-27
How to cite this article:
Dr Vandana Gupta "Theoretical foundations of gender diversity and financial performance". International Journal of Finance and Commerce, Vol 7, Issue 3, 2025, Pages 22-27
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