Abstract

Purpose: This paper examines the effect of Board gender diversity on financial performance in the Egyptian banking industry. It investigates whether female directors on bank boards affect financial performance in terms of the CAMELS (capital adequacy, asset quality, management quality, earnings efficiency, liquidity risk, and sensitivity to market risk) framework.

Methods and tools: This study uses a sample of 12 banks listed on the Egyptian Exchange covering the period from 2012 to 2022, employing panel data analysis and the Generalized Method of Moments (GMM) technique to examine the relationship between board gender diversity and bank performance. Control variables are bank size, non-executive directors’ ratio, CEO and chairman roles duality, board ownership, number of board meetings, and auditing committee meetings.

Results: Findings indicate that female participation has no significant effects on each of the asset quality and earnings indicators, while capital adequacy, management efficiency, and sensitivity to risk have been affected positively. Besides, female participation seems to have a significant negative effect on liquidity.

Theoretical and empirical contribution: This study significantly contributes to the discussion on gender diversity in corporate governance, particularly in the banking sector of emerging markets. It establishes a foundation that can be used by academics, industry practitioners, and policymakers to advance inclusive and effective governance structures.

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