Does board gender diversity, gender gap index, and corruption ranking impact performance? An analysis of emerging countries
DOI:
https://doi.org/10.18568/internext.v21i1.858Keywords:
Board of Directors’ Gender Diversity, Corruption Ranking, Gender Gap IndexAbstract
Objective: This study aims to investigate how the relationship between gender equality and the level of perceived corruption in emerging countries is associated with firms’ market performance. Furthermore, it examines whether female participation on corporate Boards of Directors (BoDs) can influence these relationships of interest. Method: In the period from 2016 to 2021, 19 emerging countries and 14,964 companies were analyzed. The data were collected from the Bloomberg database, as well as from the websites of the World Economic Forum and Transparency International. The methodology used was multilevel regression, with Tobin’s Q being the dependent variable and the Gender Gap Index (GGI) and Corruption Perceptions Index (CPI) as the main explanatory variables. Results: The results suggest that, in emerging countries with greater gender equality and, simultaneously, with a greater representation of women on the BoDs, a superior performance is observed. In addition, countries with lower corruption indices demonstrate a higher performance. It was also noticed that less corrupt countries and with a greater presence of women in high-ranking positions provide better performance. Relevance / Originality: This study pioneers the use of sophisticated multilevel methodology to reveal that isolated gender quota policies are insufficient in emerging countries, requiring a convergence between effective female representation and sound institutional environments (low corruption and high equality) to catalyze corporate value. The research offers unprecedented theoretical contribution by empirically validating the nonlinear effect of female participation (inverted U-curve), demonstrating that mere numerical inclusion without actual decision-making power can reverse performance gains, providing decisive practical insights for public and corporate policymakers on how to structure diversity programs that effectively convert representation into measurable economic impact. Theoretical / Methodological Contributions: This study contributes to the understanding of how cultural, social, and economic aspects can influence organizations.
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Copyright (c) 2025 Fernanda Ernesto Machado Félix de Castro, Fernanda Maciel Peixoto, Thayla Machado Guimarães Iglesias, MarMarcelo Fodra
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