The role of women on board of directors and firm performance: Evidence from Saudi Arabia financial market

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Abstract

The major purpose of this article is to investigate how women on boards of directors influence firm performance in Saudi Arabia firms. The major approach utilized to assess the influence of female board members and top management positions on business performance was multivariate regression analysis. The research employed an alternate proxy assessment for women on the boards of directors and in top management. Women on boards of directors and in top management had a modestly favourable link with company success, according to the data. The study employed alternative proxy metrics for women on the board of directors and in upper management. The study contributes to the corpus of information on the influence of women on business boards of directors and in top management. The study’s shortcomings include its small sample of publicly traded Saudi firms and its concentration on the problem of women on boards of directors and in top management in Saudi Arabia, as well as their impact on firm performance. Finally, this study is the first to examine the link between the success of a corporation and the presence of women in senior management positions and on corporate boards.

Keywords: Women on the Board, Saudi Financial Sector, Saudi Arabia

Authors’ individual contribution: Conceptualization — E.M.A.-M.; Methodology — E.M.A.-M.; Formal Analysis — E.M.A.-M.; Investigation — E.M.A.-M. and M.H.A.; Resources — E.M.A.-M.; Data Curation — E.M.A.-M.; Writing — Original Draft — E.M.A.-M.; Writing — Review & Editing — M.H.A.; Visualization — E.M.A.-M. and M.H.A.; Supervision — M.H.A.; Project Administration — M.H.A.

Declaration of conflicting interests: The Authors declare that there is no conflict of interest.

Acknowledgements: This work was funded by the Deanship of Scientific Research at Jouf University under grant No. DSR2021-SS-12.

JEL Classification: G34, L25, M14

Received: 26.03.2022
Accepted: 19.07.2022
Published online: 21.07.2022

How to cite this paper: Al-Matari, E. M., & Alosaimi, M. H. (2022). The role of women on board of directors and firm performance: Evidence from Saudi Arabia financial market. Corporate Governance and Organizational Behavior Review, 6(3), 44–55. https://doi.org/10.22495/cgobrv6i3p4