IMPACT OF GENDER DIVERSITY AND CORPORATE GOVERNANCE ON FIRM’S INTELLECTUAL CAPITAL: A STUDY OF MANUFACTURING COMPANIES OF KSE-100 INDEX

Abstract

Focus ofthe Study: The study focuses on investigating the impact of gender diversity and corporate governance on the intellectual capital among the manufacturing firms listed ofKSE-100 Index. Data and Sample: The study uses data from 46 manufacturing companies listed on KSE-100 Index covering the time frame from 2015 to 2022. Methodology: The study adopts the Value-Added Intellectual Capital (VAIC) model to assess Intellectual Capital (IC). VAIC and employed random effect model for studying the influence of gender diversity and corporate governance on VAIC. Key Variables: Gender diversity is identified as a key variable, specifically examining the impact of the inclusion of females in the company board and/or as Chief Executive Officers (CEOs). Corporate governance (CG) factors like CEO duality, board independence and board size are also included in the investigation as suggested by the existing CG -IC literature. Findings: The findings indicate that gender diversity, CEO duality and board independence are significantly influencing firms’ IC. It implies that a healthy balance ofgender diversity may be beneficial for maintaining a reasonable level ofriskiness in the company. The study emphasizes the importance ofmaking decisions about the level ofrisk a company should take, suggesting that a balanced approach to diversity contributes to the success ofthe firm. Implications: The study suggests that gender diversity, especially in leadership roles, can impact risk management and decision-making processes within manufacturing companies. A call for a healthy balance of diversity is made, indicating that an optimal mix ofgenders in leadership positions can contribute to the success ofthe organization