Impact of gender diversity in boards on firm value - a study on Kenyan and Egyptian listed companies

Abstract

The purpose of this paper is to determine ( 1) whether there is any relationship between gender diversification in boards of listed companies and the firm value and (2) if the relationship varies across industries. Data from two countries, Kenya and Egypt, is used over a pe1iod of five years, 2010-2014. The two countries are chosen because of their difference in culture that allows one country to have more women on the boards compared to the other. In this case Kenya has more female representation in boards compared to Egypt. Panel data techniques are used to establish the relationship between gender diversity in boards and firm value. In Kenya gender diversity in boards is found to have a negative impact on fi1m value. However, industry specific results vary as the relationship is found to be negative in the banking industry, positive in the construction industry and no relationship is found in the commercial services industry.