Gender diversity inclusive board structure and firm performance: Evidence from West Africa

Abstract We analyze the relationship of board structure features with non‐financial firm's performance among West African listed companies. The data was collected though content analysis of annual reports and audited financial statement of 109 West African listed companies over 2002–2017 by utilized three financial performance proxies, namely return on assets, return on equity, and Tobin Q. We employed several model specification tests and regression methods including pooled OLS, fixed effects and GMM two stage models. The results indicate statistically positive relationship between board size and firm performance but only significant with Tobin's Q and positive significant effect of women directorship and women chief executive officer on firm performance. Independent director has statistically positive significant effect on firm financial performance. Paradoxically, women independent directors has negative significant impact on financial performance. Findings imply that corporations should have a board structure including women executives’ directors, woman CEO and men independent directors as a way to enhance firm's performance. This paper contributes to developing countries scant literature on determinants financial performance and corporate governance practices by provides evidence on why and how corporation should have independent directors and gender diversity inclusive board structure to enhance firm's performance ones in developing countries.