IMPACT OF WOMEN DIRECTORS ON FINANCIAL PERFORMANCE OF NIFTY MIDCAP 50 COMPANIES

Abstract

The aim of this paper is to investigate how women directors influence the firm’s financial performance by using the data Nifty Midcap 50 companies. By analysing the influence of women directors, independent directors, non-executive, executive, and women chairperson directors and their financial performance on the corporate board. A Quantitative research method is taken as the research methodology. The paper uses Indian companies listed in the Nifty Midcap 100 for 50 companies as the dataset for 5 years (2015-16 to 2019-2020). The firm performance was measured using return on assets and return on capital employed. The board size is considered as the control variable. Based on the Hausman’s Test, the random effect model is performed to explain the phenomenon. The findings reveal a positive relationship that is not statistically significant between female directorship and performance as assessed by ROA and ROCE, which defies both ethical and economic beliefs. This paper provides insights into the relationship between gender diversity and firm performance by exploring the nifty midcap 50 companies. – A novel approach in the management and business literature.