Gender Diversity and banks financial performance; evidence from USA banks

Abstract

Many studies have showed mixed results when investing the effect of gender diversity and the financial performance of the firms. Some studies showed positive, negative and no significant association between the proportion of females and the performance. This study tested the impact of gender diversity on US banks performance. The sample of this study was collected from the period 2014 to 2009 with 1,054 observations. We used Ols regression to test the impact of the independent variables which they were the women ratio and firm size, age and board size as control variables, return on assets (ROA) was used to measure of the performance as dependent variable. The findings of this study indicated that gender diversity has a negative impact on the bank’s financial performance. Thus, the percentage of female directors negatively influence the banks performance by resulting a decrease on the return of assets (ROA).