Equbusiness book VERSION 28SEPT2023 - Flipbook - Page 70
6. GENDER
DIVERSITY IN CORPORATE BOARDS
- AN
ANALYSIS ON INNOVATION AND FINANCIAL
PERFORMANCE
By Elif Yücel & Yasemin Ertan
6.1. INTRODUCTION
In recent years, it has been observed that women have become increasingly active in the workforce. It is known
that there has been a departure from the traditional male-dominated structure in the business world, and
women have been finding opportunities to work in various sectors and roles. However, especially as the
management level increases, the proportion of women decreases (Daily et al., 1999; Helfat et al., 2006; Hillman
et al., 2007; Desvaux et al., 2010; Dezsö and Ross, 2012). From a global perspective, we can see that in the United
States, women make up approximately 20% to 40% of board members, whereas in European Union countries,
this percentage typically falls between 30% and 50%. However, in countries such as Korea, Mexico, and Turkey,
the number of women members on boards is quite low (S&P, 2022). Also, according to research conducted by
Deloitte (2022), it was found that the representation of women in boards is 19.7%, but only 6.7% of them hold
the position of board chair, and 5% are CEOs. The gender distribution of CEOs in firm groups and well-known
indexes worldwide in 2023 is depicted in Figure 5. As can be seen from the graphic, the percentage of women is
very low.
Figure 5: Global leadership of women
Gender equality can be seen as the process of bringing the different characteristics and abilities of male and
woman board members to the firms. The benefits arising from the participation of women on corporate boards
are diverse. Initially, women on boards can influence corporate governance and, in turn, improve firm
performance. The absence or scarcity of women in the top management of companies is an indicator that the
firm lacks institutionalization. Adherence to corporate governance principles is also a factor that enhances a
firm's performance. Therefore, it is expected that a firm where women can have a say in management will be
more successful (Alabede 2016). Women have a significant impact on corporate governance due to their greater
dedication to attending meetings, and the presence of women directors tends to encourage greater participation
by male directors (Adams and Ferreira, 2009). Gender equality is also one of the sustainable development goals
