Women on boards: an empirical study on the effects on financial performance and corporate social responsibility

Abstract

Purpose The purpose of this study is to investigate whether there is a relationship between women’s presence on boards of directors and companies’ financial performance and corporate social responsibility (CSR) disclosure and, if so, whether this relationship is positive, negative or neutral. Design/methodology/approach The research sample included 47 companies listed on the Palestine Stock Exchange from 2010 to 2020. Panel regression analysis was used to examine the study’s hypothesis and achieve the study’s objectives. Findings The presence of women on the board of directors positively affects a company’s financial performance and disclosure of CSR. However, measuring the CSR disclosure sub-components separately shows a decrease in the disclosure index towards both the environment and employees. Moreover, the level of female representation on the boards of directors of the Palestinian companies studied is generally low. Research limitations/implications Concerning the study limitations, the sample, which comprised all companies listed on the Palestine Stock Exchange from 2010 to 2020, was small. Concerning the implications of the study results, it is recommended that all companies listed on the Palestine Stock Exchange incorporate women on their boards of directors and in their executive management and audit committees. Practical implications The presence of women on Palestinian companies’ boards of directors enhances decision-making policy because of the differences between the genders as well as women’s capacity and unique skills. Originality/value This research contributes to the literature on women’s representation on the boards of directors of the Palestinian companies listed on the Palestine Stock Exchange with the possibility of issuing mandatory instructions for their existence. This study also attempts to provide a better understanding of the financial performance and disclosure of CSR of companies with women on these boards and helps determine whether the relationships between these variables are positive, negative or neutral. Furthermore, this study attempts to determine the extent of these companies’ commitment to the indicators of CSR disclosure.

Evaluating the Relationship between Corporate Social Responsibility Incentives and Financial Outcomes of Corporations Operating in the GCC Region

“…The research adopted a quantitative approach (Awwad et al, 2023) to determine the relationship between corporate social responsibility and corporate financial performance in the Gulf Cooperation Council countries. ESG score was used to estimate the performance of the corporate social responsibility and the financial ratios (ROA, ROE, EPS, and EBIT) were used to estimate the financial performance.…”

The influence of board characteristics, ownership structure and public attention on climate change disclosure in banking sector companies

“…The trend of female's presence on boards improving environmental performance has been of concern to several researchers. Previous research shows the positive moral influence of gender diversity on the board of directors on the level of environmental disclosure (Awwad et al, 2023; Tapver et al, 2020; Wan Mohammad et al, 2023). Based on the arguments and findings above, this research proposes a hypothesis:H1 There is a positive relationship between the female presence on the board of directors and the level of environmental disclosure by the company.…”

“…The presence of women on boards of directors not only brings a unique perspective to decision-making but also influences how companies address environmental issues, such as climate change. Women tend to be more sensitive to social and environmental aspects, encourage transparency in reporting business environmental impacts, and reduce the risk of conflicts of interest (Awwad et al, 2023). They typically pay attention to long-term sustainability and focus on environmental issues rather than short-term profits, which in turn strengthens the company's commitment to responsible business practices.…”

Comprehensive Board of Commissioner Diversity and Corporate Social Responsibility Disclosure in Indonesia

“…For example, Katmon et al (2019) show a positive association between female boards and CSR disclosure. Awwad et al (2023) also document that female boards increased firm performance and corporate social responsibility using listed companies in the Palestine Stock Exchange from 2010 to 2020. Temiz and Acar (2023) use cross-country samples (43 countries) from 2010-2019 and report that firms with higher female board representatives experience higher CSR initiatives.…”