The Moderating Effect of Gender Diversity on the Relationship Between Corporate Governance and Company Performance: Findings from the Tunisian Stock Exchange

Abstract

Purpose: This research aims to argue that the inconclusive evidence of the relationship between corporate governance and performance may be due to the moderating effect of gender diversity on the board.   Design/methodology/approach: The study is based on a sample of 16 companies listed on the Tunisian Stock Exchange (BVMT) over the period 2009-2021. A moderating regression analysis inspired this research.   Findings: Specifically, corporate governance appears to have a positive effect on firm performance only in countries with above-average board diversity. The effect of corporate governance on performance decreases as board diversity decreases. The results are robust to different measures of board gender diversity and firm performance, changes in estimation methods, changes in sample structure, and tokenism.   Originality/value: This article extends the existing literature by examining the moderating effect of gender diversity on boards of directors on the relationship between corporate governance and firm performance.