Author(s): Prodip Chandra Bishwas, Mohammed Sawkat Hossain
Corporate governance plays a vital role in exploring firm performance, growth, solvency, stability, and managing risk exposure. As an essential corporate governance constituent, an effective board composition includes diverse abilities, cultures, and perspectives to confirm optimal long-term sustainability choices. In particular, women's involvement in board composition pushes toward greater gender diversity at the succession level. Existing finance literature provides scant empirical evidence about the effect of gender dynamics on corporate performance. Hence, the ongoing debate on whether firm performance is genuinely affected by gender dynamics has become a debatable issue in the relevant literature. So, based on the panel test bed from January 2013 to December 2020, the test results indicate that the presence of women on the board has a major negative impact on the company's financial performance. Consequently, by addressing a fundamental financial issue, the study provides evidence of the effect of female board composition on business performance. Therefore, this study not only significantly subsidizes the extant literature on board gender diversity challenges but also assists in a more profound comprehension of female directors' role in corporate governance and performance.