The effect of gender diversity on corporate performance in South African listed companies
Date
2018
Authors
Peens, Nicolene
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Abstract
ABSTRACT
The issue of diversity in the workplace, especially gender diversity, has been in the
spotlight in recent times. Partly due to increased media attention, activism by certain
interest groups, and a general global focus on the importance of equality in the world
of work.
This study endeavoured to better understand the effect, if any, of greater gender
diversity of boards of directors on corporate financial performance. The directorate and
financial performance of the top hundred companies listed on the Johannesburg Stock
Exchange from 2010 to 2014 was analysed to investigate the phenomenon of gender
diversity in the boardroom.
The relationship between the percentage women on the board of directors and
corporate financial performance was examined using multiple regression analysis and
Structural Equation Modelling. Both Tobin’s Q and Return on Assets were used as
financial performance measures. Similar to a number of studies on the topic, no
statistically significant relationship could be observed between board gender diversity
and company financial performance.
The results of this study does not support the business case for greater board gender
diversity, but also does not find evidence that appointing women to the board comes
at a cost to organisations. The issue of addressing the underrepresentation of women
in decision-making roles of the South African workforce remains of critical importance
in achieving a more inclusive and equal workforce where greater variety can benefit
individuals, society, as well as organisations.
Description
MBA Thesis
Keywords
Women executives -- South Africa. Directors of corporations -- South Africa. Diversity in the workplace -- South Africa.