Equbusiness book VERSION 28SEPT2023 - Flipbook - Page 79
6.7. CONCLUSION
In recent years, there has been a noticeable increase in women's participation in the workforce. However, this
trend reverses as we move up the management hierarchy, with fewer women in leadership positions.
Interestingly, homogenous communities can sometimes hinder innovation. That's why diverse groups are
valuable, as they bring a broader range of opinions and unique perspectives. In today's competitive environment,
it is anticipated that innovative businesses will enjoy greater success.
So, the primary aim of this study is to assess the gender diversity within the boards of companies in the BIST
Manufacturing sector and evaluate its current influence on the immediate financial performance of these firms.
For this purpose, initially, boards in terms of gender have been analyzed. When the gender distribution of the
boards of firms operating in the BIST Manufacturing sector in 2022 is examined, it has been determined that
30.2% of these firms have no women members on their boards, and approximately 34% of them have only one
female board member. Another objective of the study is to examine the innovation intensity of firms operating in
the BIST manufacturing sector. 54.17% of the firms have innovation intensity less than 0.0001. This situation is
because the expenses incurred for research and development activities in these firms are zero or very low. When
we examine the relationship between the presence of women on boards, independent women members on
boards, innovation intensity and immediate financial performance. A statistically positive correlation exists
between WOB and IWOB of firms operating in the BIST manufacturing sector at a 1% significance level.
Furthermore, a positive correlation exists between IWOB and RD at a 5% significance level, indicating that as the
proportion of women in independent board positions increases, innovation intensity also rises. As a result of the
regression analysis, it has been determined that the percentage of women on boards does not affect the firm's
financial performance. However, there is a relationship between Leverage and ROA. Additionally, according to the
analysis, the percentage of women among the independent members of the board of directors has no effect on
the firm's immediate financial performance. Actually, an increase in innovation is expected to improve financial
performance as well. However, both the number of women on boards and innovation expenses remain quite
inadequate in Turkey. In addition, the absence of the relationship between the number of women on board and
immediate financial performance actually emphasizes gender equality. If women are not negatively affecting
financial performance, there is no fundamental basis for such a low representation of women in board positions.
Unfortunately, today, although women are still a minority in most boards, some of the women members are also
family members and are only symbolically present in the boards of directors to comply with corporate
governance principles, sustainable development goals and other legal regulations. Therefore, despite the many
managerial benefits that women bring, and the majority of studies in the literature, including this study, showing
that women board members have no significant impact on a firm's financial performance, gender equality should
no longer be limited to regulatory frameworks.
6.8. LIMITATIONS
This study was conducted using the data of the firms operating in the BIST manufacturing sector for 2022.
Developing the study to cover a broader period would be helpful. Another limitation of the study is related to
innovation. In the future, developing the study to include patents would be useful, which is another indicator of
firms' innovation activities. This study has focused on financial performance and innovation, overlooking factors
such as market dynamics, industry competition, and other external influences that could impact gender diversity
in corporate boards. In addition, in the future, it would be useful to develop the study to cover different sectors
and sub-sectors to obtain more detailed information.
