The effect of board gender diversity on the performance of listed financial institution in Malaysia / Amieza Alamshah

The aim of this study is to determine the effects of board gender diversity towards the performance of listed financial institutions. It comprises of 31 listed financial institutions in Malaysia and the data was collected starting from 2012 until 2016. The theory that involves in this study is the Agency Theory which related with the board of director’s function in decision making process. This study found that the existence of woman on the board does positively correlates with the performance of Malaysian listed financial institutions in terms of ROE and ROA. Similarly, the proportion of women on the board and the gender diversity on the board also has a positive relationship with the ROE and ROA. Meanwhile, as for the control variables which comprises of board size, board independence and firm size, all of them are negatively correlate with the performance. These findings are valuable to investors, investment analysis and researchers as they can benefit the result. As well as for the policy maker, they can develop a regulatory that encourages the participation of women on board.