Impact of Board Gender Diversity on Firm Performance with Mediating Effect of Corporate Social Responsibility: A Case of Covid-19

Abstract

This study has focused mainly on investigating the relationship between board gender diversity, corporate social responsibility, and financial performance in non-financial firms of Pakistan. This study has considered board gender diversity as independent variable. Financial performance (represented by return on assets) is considered as dependent variable. Corporate social responsibility is used as a mediator. Size, growth, self-finance ratio, and tangibility are used as control variables. This study has finalized non-financial sector of Pakistan to testify the relationship between variables mentioned above. Annual financial statements of Pakistani non-financial firms are used for data collection regarding study variables from the period of 2019 – 2021 (10 quarters). A sample size of 50 non-financial firms (500 observations) is finalized to represent the entire non-financial sector of Pakistan. Collected data is then analyzed through statistical instruments such as correlation, regression, and mediation by using Strata software. Based on the findings of correlation and regression analysis, it is concluded that board gender diversity and corporate social responsibility impacts financial performance in non-financial firms of Pakistan. In addition, findings have proved that board gender diversity significantly impacts corporate social responsibility in non-financial firms of Pakistan. Finally, mediation analysis has proved the mediating effect of corporate social responsibility in relationship between board gender diversity and financial performance in non-financial firms of Pakistan.