BOARD GENDER DIVERSITY AND WORKING CAPITAL MANAGEMENT: EMPIRICAL EVIDENCE FROM FINANCIAL SECTOR OF INDIA

Abstract

Purpose- The aim of this study is analyse the impact of board gender diversity (BGD) on working capital management (WCM) decision. Further, this study also tested the impact of WCM on firm performance (FP).

Design/methodology/approach- The study uses panel data regression model with fixed effect estimations and generalized method of moments (GMM). This study use panel data analysis of six financial listed companies on NSE during the period of 2023 -2013 taken from the NSE website and financial reports.

Findings- The study found that female directors pursue CWCM strategies. Beside this our study also proves that female directors do not support AWCM and MWCM strategies. The results also showed that CWCM, AWCM and MWCM strategies have a significant influence on FP. Regarding control variables, BSZE has an insignificant influence on ROA. Moreover, FAGE has a negative and significant influence on ROA and FSZE has a negative and significant influence on ROA. Furthermore, BSZE and FAGE has a positive influence on AWCM, MWCM and CWCM while FSZE has a positive influence on MWCM.

Originality/value- While previous research has examined the effect of WCM of FP, this study is the first to include BGD and its impact on WCM strategy in Indian context