The Effects of Firms’ Board Gender Diversity on Their Labor Investment Efficiency

Document Type : Research Paper

Author

Assistant Professor, Department of Accounting, University of Sistan and Baluchestan, Zahedan, Iran.

Abstract

Introduction: This paper investigates the effect of board gender diversity on firm labor investment efficiency with the considering role of internal and external monitoring.
Methods: The methodology of this study is a quantitative and ex-post and labor investment efficiency was measured using the Pinnuck and Lillis model. The sample of this research is related to 122 companies on Tehran Stock Exchange from 2008 to 2020.
Results: The results of research regression analysis showed that there is a positive and significant relationship between board gender diversity and firms’ labor investment efficiency. Also, the evidence showed that the relationship between board gender diversity and over- or under-investment in labor is negative and significant. In addition, evidence shows that when firms have weak internal and external monitoring a stronger positive relationship between board gender diversity and labor investment efficiency exists.
Conclusion: Based on the evidence obtained from the research, it is suggested to the shareholders of companies that in the choice of board members, the presence of Women and their choice as members of the board should be given special attention. Also, the Tehran Stock Exchange and Securities Organization, the institutions in charge of employment in Iran and other relevant institutions are suggested to interact with each other to improve the efficiency of investment in companies to enact laws that the company Have a legal obligation to elect female board members.

Keywords

References

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History

  • Receive Date: 26 September 2021
  • Revise Date: 10 October 2022
  • Accept Date: 29 July 2023

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