The Effect of Board Gender Composition on the Financial Performance of Listed Companies in Kenya

Abstract

This paper examined the effect of board gender composition on the financial performance of listed companies based on evidence from Kenya during a five year period (2007 - 2011). Board gender composition was calculated as the proportion of board seats that women occupy in these listed firms, while financial performance was measured by the return on assets (ROA). This study used secondary data collected from published annual reports and a cross sectional research design was used to provide a snap shot of the population at a single point in time. The data was analyzed using Statistical Package for the Social Sciences (SPSS) version 17. Regression analysis was used to determine the relationship between board gender composition and the performance of listed companies. The research finding indicate that there is a negative relationship between gender diversity and firm financial performance. The implication of these findings is that an increase in the number of board seats for women may affect the company's performance negatively.