Relationship between Gender Diversity in Top Management Teams and Profitability of Pakistani Firms

Abstract

This research examines the relationship between gender diversity in top management teams on the profitability of Pakistani firms. Data is collected from the highest market capitalized manufacturing firms over the time period of five years from 2010-2014. Statistical analysis revealed that there is a two way relationship between gender diversity and firm profitability. Findings of this research suggest that females tend to work on the highly profitable firms and bring a tremendous increase in the profitability of that firm in return. Results also revealed that the high percentage of males in top management teams is negatively related to the firm profitability.

Keywords: gender diversity, top management, management teams, firm profitability, female top managers, male top managers