Female Directors and Firm Performance: Evidence from UK Listed Firms

Pananda  Pasaribu

Pananda Pasaribu Kwik Kian Gie School of Business

Keywords: Female Directors, Firm Performance

Abstract

The impact of female directors on firm performance has lacked consistency in the previously conducted empirical studies, which may be due to the endogeneity problem, or certain characteristics (i.e. governance, industry, competition). This study examines the relationship between female directors and firm performance by addressing those problems. This study analyses all non-financial UK listed firms during the period 2004-2012 and employs several econometric models. The regression results indicate that there is little evidence that female directors have a positive and strong relationship with firm performance. But, further analysis reports that the UK’s small listed firms experience a positive significant effect, because small firms do not suffer from the problem of over-monitoring and they have more flexibility in composing their boards of directors.

Author Biography

Pananda Pasaribu, Kwik Kian Gie School of Business

A Lecturer at Kwik Kian Gie School of Business, Jakarta, Indonesia. He earned his Ph.D. degree (2015) in Finance from Leeds University Business School (LUBS), UK; he earned his Master’s Degree (2011) in Financial Forecasting and Investment from The University of Glasgow, Scotland, UK; and his Master’s Degree (2009) in Corporate Finance from University of Indonesia, Jakarta, Indonesia. He earned his bachelor’s degree (2007) in Agribusiness, from Bogor Agricultural University, Faculty of Agriculture, Department of Social Economics of Agriculture, Bogor, Indonesia. He has published several publications in Jurnal Keuangan dan Perbankan, Estimasi Probabilitas Default Perusahaan dan Hubungannya dengan Rasio Keuangan, and Jurnal Ekonomi, Pengaruh Variabel Makro Ekonomi terhadap IHSG.

Author’s contact details: Department of Management, Kwik Kian Gie School of Business, Jl Yos Sudarso Kav. 87th Sunter – Jakarta 14350; Phone: +62 (21) 6530 -7062; e-mail: pananda@kwikkiangie.ac.id.

References

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