Gender diversity and the stock price

Abstract

The current study evaluates how gender diversity impacts the stock price, whether on the audit committee, commissioners, or directors, using firm size as the moderating variable. A total of 240 secondary data samples were derived from 24 publicly listed banking institutions from 2012–2021. The multiple regression and moderated regression analysis used to process the sample research was considered the most suitable for this study. The statistical test in the first model showed that the existence of women executives on the board of directors impacts the stock price. This first model result is in line with the research by Báez, Báez-García, Flores-Muñoz, and Gutiérrez-Barroso (2018). The gender diversity in the composition of commissioners and audit committees showed that it had not impacted the stock prices. Furthermore, the directors and audit committees affected the stock price in the second model. This result is in line with the research by Qayyum et al. (2021) that demonstrated that the women officers on a company’s board could lower crash risk in stock price. Contrarily, the variable in this second model, the board of commissioners, did not impact the stock price. Thus, the second model noticed that firm size, as moderating variable, weakened the impact of the audit committee on the stock price. The current study contributes to the literature concerning the impact of gender diversity in company officers’ levels on the stock price. Future researchers can use other samples from other emerging markets countries. Further investigations are urged to broaden the context of the study to achieve more enriched findings.