Ethics Redefined: A Comparative Study on Women on Boards vs. Attributes of Corporate Governance in the Light of Firm Performance

Abstract

This study is related to Corporate Governance (CG) and is an important research stream. One of the most noteworthy dimensions of CG is Board Gender Diversity (BGD).  While there is a lot of study being done on BGD in developing and emerging market economies is still in the early stages of this field. This study attempts to answer the seminal question, of what matters most for Firm Performance (FP), CG attributes, or just BGD). So, this study investigates the relationship between BGD and CG attributes, on the FP. The existing literature lacks a comprehensive analysis of BGD and CG attributes on FP so this study fills this research gap. To meet the study's objective, data is collected for 50 non-financial firms listed on the Pakistan Stock Exchange, the data period is 2017-2022 which leads to a total of 300 firm-year observations. For data analysis, the technique of panel regression is used in this study. This study reveals that CG attributes employ mixed influence on FP, while BGD negatively impacts the FP, emphasizing the significance of border governance mechanisms. This research shows the need for the firm to prioritize more ethical governance practices, across different cultural and economic contexts instead of just diluting the board with more female directors. Exploring the role of other variables could provide deeper insights into the factors deriving these relationships.