THE IMPACT OF FEMALE BOARD MEMBERS ON FIRM PERFORMANCE, THE CASE OF OMAN
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Abstract
The role of female board members in influencing firm performance has garnered significant attention in the field of corporate governance, driven by global discussions on gender diversity and its potential benefits. This study explores the nuanced impact of female board members on firm performance within the context of the Muscat Securities Market (MSM). Employing a quantitative research method, the study examines a sample of 80 non-financial companies listed on the MSM, excluding financial sector firms. Data collection involves a multi-source approach, utilizing DATASTREAM, annual reports, and corporate governance reports to gather comprehensive information. The methodology encompasses binary indicators for female board presence and control variables such as firm size, leverage, and sector dummies. Notably, Tobin's Q coefficient is significant and negative (-0.3787, t-statistic: -4.77), indicating potential market bias against female board members. Control variables show mixed effects. The study underscores the nuanced relationship between gender diversity and firm performance in the MSM, highlighting the influence of cultural factors on corporate governance practices. This research contributes to the ongoing debate on gender diversity in corporate governance and offers insights for policymakers and practitioners seeking to understand the implications of gender-balanced leadership teams.
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