Female Directors and Firm Performance: Evidence from Saudi Arabia

Abstract

This study examines the relationship between female board representation and performance of Saudi nonfinancial listed firms. Using a sample of 350 firms over the period 2016 to 2019, the study finds that neither female board representation nor the attributes of the women in the sample (qualification, experience, and independence) are significantly related to firm performance. The current study also finds that the diligence of female directors does not modify the relationship between their board representation and the performance of Saudi nonfinancial listed firms. Considering the fact that no Saudi nonfinancial listed firm has more than two female members on its board, the result of this study suggests the importance of having a critical mass of female board directors in order to make a greater contribution to firm performance. Furthermore, current female board representation supports the notion of tokenism in Saudi businesses.

Keywords: female board representation, performance, Saudi nonfinancial listed firms.

DOI: 10.7176/RJFA/11-24-04

Publication date: December 31^st 2020