Unraveling Board Gender Dynamics and Firm PerformanceInsights from The Indian IT Sector

  • Authors

    • Sukhjinder Kaur Assistant Professor, Department of Commerce, Guru Nanak Dev University College, Sujanpur, Punjab, India
    • Dr. Lakhwinder Singh Kang Professor, University School of Financial Studies, Guru Nanak Dev University, Amritsar, Punjab, India
    https://doi.org/10.14419/d3g01h63

    Received date: November 12, 2025

    Accepted date: December 1, 2025

    Published date: December 19, 2025

  • Board Gender Diversity; Women Independent Directors; Women Holding Multiple Directorships; Market Capitalisation; Information and ‎Technology Sec-tor in India; Dynamic System GMM

  • Abstract

    This research work attempts to investigate how gender diversity affects operational outcomes within India's Information Technology (IT) sector. ‎The study specifically focuses on the roles of women independent directors and women holding multiple directorships, as outlined by the ‎Companies Act of 2013. This study also accounts for governance and firm-specific attributes to evaluate the influence of gender-diverse boards, ‎women independent directors, and women occupying several board positions on the market value of Indian IT companies listed on the BSE ‎Information and Technology Index. The analysis spans a period of ten years from 1st April 2013 to 31st March 2023, using the Generalised ‎Method of Moments (GMM) as the dynamic panel data estimation technique, which combines level and difference equations to address ‎endogeneity issues. The findings indicate a substantial positive link between the diversity of gender on boards and business performance, ‎underscoring the value of diverse perspectives in enhancing governance and strategic outcomes. Conversely, the presence of independent ‎women directors is inversely related to business performance, suggesting potential tokenism and cultural constraints that may limit their ‎influence. In contrast, women holding multiple directorships positively contribute to firm performance by enhancing board effectiveness and ‎strategic input. This study is limited to the IT sector, and the unique socio-cultural and regulatory environment in India may constrain the cross-contextual applicability of the findings across divergent industry verticals or geographic domains. Nevertheless, this research serves as a ‎valuable contribution to the limited studies available on gender diversity in corporate governance within the Indian IT sector and is among the ‎first to delve into the distinct roles of women independent directors and multiple directorship holders in a highly competitive and dynamic ‎industry‎.

  • References

    1. Adams, R. B., & Ferreira, D. (2009). Women in the boardroom and their impact on governance and performance. Journal of Financial Economics, 94(2), 291-309. https://doi.org/10.1016/j.jfineco.2008.10.007.
    2. Ahern, K. R., & Dittmar, A. K. (2012). The changing of the boards: The impact on firm valuation of mandated female board representation. The quarterly journal of economics, 127(1), 137-197. https://doi.org/10.1093/qje/qjr049.
    3. Ahn, S., Jiraporn, P., & Kim, Y. S. (2010). Multiple directorships and acquirer returns. Journal of Banking & Finance, 34(9), 2011-2026. https://doi.org/10.1016/j.jbankfin.2010.01.009.
    4. Ain, Q. U., Yuan, X., Javaid, H. M., Usman, M., & Haris, M. (2021). Female directors and agency costs: evidence from Chinese listed firms. Inter-national Journal of Emerging Markets, 16(8), 1604-1633. https://doi.org/10.1016/j.jbankfin.2010.01.009.
    5. Ararat, M., & Yurtoglu, B. B. (2021). Female directors, board committees, and firm performance: Time-series evidence from Turkey. Emerging Markets Review, 48, 100768. https://doi.org/10.1016/j.ememar.2020.100768.
    6. Arellano, M., & Bond, S. (1991). Some tests of specification for panel data: Monte Carlo evidence and an application to employment equations. The review of economic studies, 58(2), 277-297. https://doi.org/10.2307/2297968.
    7. Arora, A. (2022). Gender diversity in boardroom and its impact on firm performance. journal of Management and Governance (2022) 26:735–755. https://doi.org/10.1007/s10997-021-09573-x.
    8. Arora, A., & Sharma, C. (2016). Corporate governance and firm performance in developing countries: evidence from India. Corporate governance, 16(2), 420-436. https://doi.org/10.1108/CG-01-2016-0018.
    9. Arvanitis, S. E., Varouchas, E. G., & Agiomirgianakis, G. M. (2022). Does board gender diversity really improve firm performance? Evidence from Greek listed firms. Journal of Risk and Financial Management, 15(7), 306. https://doi.org/10.3390/jrfm15070306.
    10. Azeez, A. A. (2015). Corporate governance and firm performance: evidence from Sri Lanka. Journal of Finance and Bank Management, 3(1), 180-189. https://doi.org/10.15640/jfbm.v3n1a16.
    11. Balasubramanian, B. N., & Anand, R. (2013). Ownership trends in corporate India 2001-2011: Evidence and implications. IIM Bangalore Research Paper, (419). https://doi.org/10.2139/ssrn.2303684.
    12. Becker, G. S. (1994). Human capital revisited. In Human capital: A theoretical and empirical analysis with special reference to education, third edi-tion (pp. 15-28). The University of Chicago Press. http://www.nber.org/chapters/c11229. https://doi.org/10.7208/chicago/9780226041223.001.0001.
    13. Bennouri, M., Chtioui, T., Nagati, H., & Nekhili, M. (2018). Female board directorship and firm performance: What really matters? Journal of Banking & Finance, 88, 267-291. https://doi.org/10.1016/j.jbankfin.2017.12.010.
    14. Bhardwaj, S., Morgan, D., & Elms, N. (2024). Why women on corporate boards are more than just tokens: an Indian perspective. Gender in Man-agement: An International Journal, 39(6), 745-760. https://doi.org/10.1108/GM-12-2022-0384.
    15. Biswas, S., Sarkar, J., & Selarka, E. (2025). Women director interlocks and firm performance: Evidence from India. Pacific-Basin Finance Journal, 90, 102616. https://doi.org/10.1016/j.pacfin.2024.102616.
    16. Blundell, R., & Bond, S. (1998). Initial conditions and moment restrictions in dynamic panel data models. Journal of econometrics, 87(1), 115-143. https://doi.org/10.1016/S0304-4076(98)00009-8.
    17. Bøhren, Ø., & Staubo, S. (2014). Does mandatory gender balance work? Changing organizational form to avoid board upheaval. Journal of corpo-rate finance, 28, 152-168. https://doi.org/10.1016/j.jcorpfin.2013.12.005.
    18. Brahma, S., Nwafor, C., & Boateng, A. (2021). Board gender diversity and firm performance: The UK evidence. International Journal of Finance & Economics, 26(4), 5704-5719. https://doi.org/10.1002/ijfe.2089.
    19. Cambrea, D. R., Tenuta, P., & Vastola, V. (2020). Female directors and corporate cash holdings: monitoring vs executive roles. Management Deci-sion, 58(2), 295-312. https://doi.org/10.1108/MD-11-2018-1289.
    20. Campbell, K., & Mínguez-Vera, A. (2008). Gender diversity in the boardroom and firm financial performance. Journal of business ethics, 83, 435-451. https://doi.org/10.1007/s10551-007-9630-y.
    21. Cashman, G. D., Gillan, S. L., & Jun, C. (2012). Going overboard? On busy directors and firm value. Journal of banking & finance, 36(12), 3248-3259. https://doi.org/10.1016/j.jbankfin.2012.07.003.
    22. Chauhan, Y., & Dey, D. K. (2017). Do female directors really add value in Indian firms? Journal of Multinational Financial Management, 42, 24-36. https://doi.org/10.1016/j.mulfin.2017.10.005.
    23. Cheng, J. Y. J., & Groysberg, B. (2020). Gender diversity at the board level can mean innovation success. MIT Sloan Management Review, 61(2), 1-8.
    24. Connelly, B. L., & Van Slyke, E. J. (2012). The power and peril of board interlocks. Business Horizons, 55(5), 403-408. https://doi.org/10.1016/j.bushor.2012.03.006.
    25. Dezsö, C. L., & Ross, D. G. (2012). Does female representation in top management improve firm performance? A panel data investigation. Strate-gic management journal, 33(9), 1072-1089. https://doi.org/10.1002/smj.1955.
    26. Duppati, G., Rao, N. V., Matlani, N., Scrimgeour, F., & Patnaik, D. (2020). Gender diversity and firm performance: evidence from India and Sin-gapore. Applied Economics, 52(14), 1553-1565. https://doi.org/10.1080/00036846.2019.1676872.
    27. Dwivedi, N., & Jain, A. K. (2005). Corporate governance and performance of Indian firms: The effect of board size and ownership. Employee re-sponsibilities and rights journal, 17, 161-172. https://doi.org/10.1007/s10672-005-6939-5.
    28. Falato, A., Kadyrzhanova, D., & Lel, U. (2014). Distracted directors: Does board busyness hurt shareholder value? Journal of Financial Econom-ics, 113(3), 404-426. https://doi.org/10.1016/j.jfineco.2014.05.005.
    29. Farrell, K. A., & Hersch, P. L. (2005). Additions to corporate boards: The effect of gender. Journal of Corporate finance, 11(1-2), 85-106. https://doi.org/10.1016/j.jcorpfin.2003.12.001.
    30. Ferris, S. P., Jagannathan, M., & Pritchard, A. C. (2003). Too busy to mind the business? Monitoring by directors with multiple board appoint-ments. The Journal of finance, 58(3), 1087-1111. https://doi.org/10.1111/1540-6261.00559.
    31. Fich, E. M., & Shivdasani, A. (2006). Are busy boards effective monitors? The Journal of finance, 61(2), 689-724. https://doi.org/10.1111/j.1540-6261.2006.00852.x.
    32. Field, L., Lowry, M., & Mkrtchyan, A. (2013). Are busy boards detrimental? Journal of financial economics, 109(1), 63-82. https://doi.org/10.1016/j.jfineco.2013.02.004.
    33. Francoeur, C., Labelle, R., & Sinclair-Desgagné, B. (2008). Gender diversity in corporate governance and top management. Journal of business eth-ics, 81, 83-95. https://doi.org/10.1007/s10551-007-9482-5.
    34. Gul, F. A., Srinidhi, B., & Ng, A. C. (2011). Does board gender diversity improve the informativeness of stock prices? Journal of accounting and Economics, 51(3), 314-338. https://doi.org/10.1016/j.jacceco.2011.01.005.
    35. Hair, Joe F., Christian M. Ringle, and Marko Sarstedt. "PLS-SEM: Indeed, a silver bullet." Journal of Marketing theory and Practice 19, no. 2 (2011): 139-152. https://doi.org/10.2753/MTP1069-6679190202.
    36. Hassan, Z. (2018). Impact of gender diversity on Indian firm's financial performance. Dankwano, RN, & Hassan, (2018), 319-341.
    37. Huse, M., & Grethe Solberg, A. (2006). Gender‐related boardroom dynamics: How Scandinavian women make and can make contributions on cor-porate boards. Women in management review, 21(2), 113-130. https://doi.org/10.1108/09649420610650693.
    38. Huse, M., & Seierstad, C. (2013). Getting women on to corporate boards: Consequences of the Norwegian gender balance law. The European Fi-nancial Review, 12, 37-39.
    39. Hwang, J., & Sun, Y. (2018). Should we go one step further? An accurate comparison of one-step and two-step procedures in a generalized method of moments framework. Journal of econometrics, 207(2), 381-405. https://doi.org/10.1016/j.jeconom.2018.07.006.
    40. Ismail, K. N. I. K., & Manaf, K. B. A. (2016). Market reactions to the appointment of women to the boards of Malaysian firms. Journal of Multina-tional Financial Management, 36, 75-88. https://doi.org/10.1016/j.mulfin.2016.04.004.
    41. Isola, W. A., Adeleye, B. N., & Olohunlana, A. O. (2020). Boardroom female participation, intellectual capital efficiency and firm performance in developing countries: Evidence from Nigeria. Journal of Economics, Finance and Administrative Science, 25(50), 413-424. https://doi.org/10.1108/JEFAS-03-2019-0034.
    42. Issa, A., & Fang, H. X. (2019). The impact of board gender diversity on corporate social responsibility in the Arab Gulf states. Gender in Manage-ment: An International Journal, 34(7), 577-605. https://doi.org/10.1108/GM-07-2018-0087.
    43. Jackling, B., & Johl, S. (2009). Board structure and firm performance: Evidence from India's top companies. Corporate governance: an internation-al review, 17(4), 492-509. https://doi.org/10.1111/j.1467-8683.2009.00760.x.
    44. Jiraporn, P., Singh, M., & Lee, C. I. (2009). Ineffective corporate governance: Director busyness and board committee memberships. Journal of Banking & Finance, 33(5), 819-828. https://doi.org/10.1016/j.jbankfin.2008.09.020.
    45. Kagzi, M., & Guha, M. (2018). Does board demographic diversity influence firm performance? Evidence from Indian-knowledge intensive firms. Benchmarking: An International Journal, 25(3), 1028-1058. https://doi.org/10.1108/BIJ-07-2017-0203.
    46. Kakabadse, N. K., Figueira, C., Nicolopoulou, K., Hong Yang, J., Kakabadse, A. P., & Özbilgin, M. F. (2015). Gender diversity and board perfor-mance: Women's experiences and perspectives. Human Resource Management, 54(2), 265-281. https://doi.org/10.1002/hrm.21694.
    47. Kalsie, A., & Shrivastav, S. M. (2016). Analysis of board size and firm performance: evidence from NSE companies using panel data approach. In-dian Journal of Corporate Governance, 9(2), 148-172. https://doi.org/10.1177/0974686216666456.
    48. Kamran, M., Djajadikerta, H. G., Mat Roni, S., Xiang, E., & Butt, P. (2023). Board gender diversity and corporate social responsibility in an inter-national setting. Journal of Accounting in Emerging Economies, 13(2), 240-275. https://doi.org/10.1108/JAEE-05-2021-0140.
    49. Kanter, R. M. (1977). Some effects of proportions on group life: Skewed sex ratios and responses to token women. American journal of Sociology, 82(5), 965-990. https://doi.org/10.1086/226425.
    50. Kataria, W., & Deep, V. (2020). Effectiveness of corporate governance on market capitalisation of top Indian publically listed firms. International Journal of Environment, Workplace and Employment, 6(1-2), 66-76. https://doi.org/10.1504/IJEWE.2020.113092.
    51. Khandelwal, P., & Sehgal, A. (2018). Exploring work-family interface for Indian women entrepreneurs. Gender in Management: An International Journal, 33(3), 203-216. https://doi.org/10.1108/GM-04-2016-0075.
    52. Kılıç, M., & Kuzey, C. (2016). The effect of board gender diversity on firm performance: evidence from Turkey. Gender in management: An inter-national journal, 31(7), 434-455. https://doi.org/10.1108/GM-10-2015-0088.
    53. Kulkarni, A. B., Khatwani, R., & Mishra, M. (2023). A study on barriers to women’s leadership in India through ISM. Gender in Management: An International Journal, 38(5), 669-686. https://doi.org/10.1108/GM-07-2022-0250.
    54. Lara, J. M. G., Osma, B. G., Mora, A., & Scapin, M. (2017). The monitoring role of female directors over accounting quality. Journal of Corporate Finance, 45, 651-668. https://doi.org/10.1016/j.jcorpfin.2017.05.016.
    55. Laskar, N., Sahu, J. P., & Choudhury, K. S. (2023). Impact of gender diversity on firm performance: empirical evidence from India. Managerial Finance, (ahead-of-print). https://doi.org/10.1108/MF-02-2023-0126.
    56. Li, H., & Chen, P. (2018). Board gender diversity and firm performance: The moderating role of firm size. Business Ethics: A European Review, 27(4), 294-308. https://doi.org/10.1111/beer.12188.
    57. Liu, Y., Wei, Z., & Xie, F. (2014). Do women directors improve firm performance in China? Journal of corporate finance, 28, 169-184. https://doi.org/10.1016/j.jcorpfin.2013.11.016.
    58. Maji, S. G., & Saha, R. (2021). Gender diversity and financial performance in an emerging economy: empirical evidence from India. Management Research Review, 44(12), 1660-1683. https://doi.org/10.1108/MRR-08-2020-0525.
    59. McGuinness, P. B. (2019). Beyond the board realm: women in senior management and their impact on IPO capital funding. British Journal of Man-agement, 30(2), 389-414. https://doi.org/10.1111/1467-8551.12303.
    60. Mohsni, S., Otchere, I., & Shahriar, S. (2021). Board gender diversity, firm performance and risk-taking in developing countries: The moderating effect of culture. Journal of International Financial Markets, Institutions and Money, 73, 101360. https://doi.org/10.1016/j.intfin.2021.101360.
    61. Nadeem, M. (2020). Does board gender diversity influence voluntary disclosure of intellectual capital in initial public offering prospectuses? Evi-dence from China. Corporate Governance: An International Review, 28(2), 100-118. https://doi.org/10.1111/corg.12304.
    62. Nashier, T., & Gupta, A. (2023). Ownership concentration and firm performance in India. Global Business Review, 24(2), 353-370. https://doi.org/10.1177/0972150919894395.
    63. Nerdrum, S. (2024). Board work in a constantly transforming world: requirements on board members now and in the future.
    64. https://urn.fi/URN:NBN:fi:amk-2024061623477.
    65. Orazalin, N., & Baydauletov, M. (2020). Corporate social responsibility strategy and corporate environmental and social performance: The moderat-ing role of board gender diversity. Corporate Social Responsibility and Environmental Management, 27(4), 1664-1676. https://doi.org/10.1002/csr.1915.
    66. Pfeffer, J. (1987). A resource dependence perspective on intercorporate relations. Intercorporate relations: The structural analysis of business, 1(1), 25-55. https://doi.org/10.1017/CBO9780511570841.002.
    67. Post, C., & Byron, K. (2015). Women on boards and firm financial performance: A meta-analysis. Academy of management Journal, 58(5), 1546-1571. https://doi.org/10.5465/amj.2013.0319.
    68. Pucheta-Martínez, M. C., Bel-Oms, I., & Olcina-Sempere, G. (2018). Female institutional directors on boards and firm value. Journal of business ethics, 152(2), 343-363. https://doi.org/10.1007/s10551-016-3265-9.
    69. Radhakrishnan, S. (2009). Professional women, good families: Respectable femininity and the cultural politics of a “new” India. Qualitative Sociol-ogy, 32, 195-212. https://doi.org/10.1007/s11133-009-9125-5.
    70. Rhode, D. L., & Packel, A. K. (2014). Diversity on corporate boards: How much difference does difference make. Del. J. Corp. L., 39, 377.
    71. Rose, C. (2007). Does female board representation influence firm performance? The Danish evidence. Corporate governance: An international re-view, 15(2), 404-413. https://doi.org/10.1111/j.1467-8683.2007.00570.x.
    72. Saeed, A., Mukarram, S. S., & Belghitar, Y. (2021). Read between the lines: Board gender diversity, family ownership, and risk‐taking in Indian high‐tech firms. International Journal of Finance & Economics, 26(1), 185-207. https://doi.org/10.1002/ijfe.1784.
    73. Saha, R. (2023). The impact of board-level female directors on firm performance: evidence from India. Equality, Diversity and Inclusion: An Inter-national Journal, 42(8), 945-967. https://doi.org/10.1108/EDI-07-2022-0172.
    74. Sanan, N. K. (2016). Board gender diversity, financial and social performance of Indian firms. Vision, 20(4), 361-367. https://doi.org/10.1177/0972262916673006.
    75. Sargan, J. D. (1958). The estimation of economic relationships using instrumental variables. Econometrica: Journal of the econometric society, 393-415. https://doi.org/10.2307/1907619.
    76. Sarkar, J., & Sarkar, S. (2009). Multiple board appointments and firm performance in emerging economies: Evidence from India. Pacific-Basin Fi-nance Journal, 17(2), 271-293. https://doi.org/10.1016/j.pacfin.2008.02.002.
    77. Sarkar, J., & Selarka, E. (2021). Women on board and performance of family firms: Evidence from India. Emerging Markets Review, 46, 100770. https://doi.org/10.1016/j.ememar.2020.100770.
    78. Serino, L., Spignese, A., & Campanella, F. (2024). Gender Diversity on BoDs and Multi-Stakeholder Value Creation: Empirical Evidence from the European Banking System. International Journal of Financial Management, 14(2), 39.
    79. Singh, J., Singhania, S., & Aggrawal, D. (2022). Does board gender diversity impact financial performance? Evidence from the Indian IT sector. Society and Business Review, 18(1), 51-70. https://doi.org/10.1108/SBR-09-2021-0164.
    80. Smriti, N., & Das, N. (2022). Do female directors drive intellectual capital performance? Evidence from Indian listed firms. Journal of Intellectual Capital, 23(5), 1052-1080. https://doi.org/10.1108/JIC-06-2020-0198.
    81. Soare, T. M., Detilleux, C., & Deschacht, N. (2022). The impact of the gender composition of company boards on firm performance. International Journal of Productivity and Performance Management, 71(5), 1611-1624. https://doi.org/10.1108/IJPPM-02-2020-0073.
    82. Srivastava, V., Das, N., & Pattanayak, J. K. (2018). Women on boards in India: a need or tokenism? Management Decision, 56(8), 1769-1786. https://doi.org/10.1108/MD-07-2017-0690.
    83. Statista (2023), “IT industry in India - statistics & facts”. [online] Available at: https://www.statista.com/topics/2256/it-industry-in-india/#topicOverview (Accessed 11 Apr. 2024).
    84. Terjesen, S., Couto, E. B., & Francisco, P. M. (2016). Does the presence of independent and female directors impact firm performance? A multi-country study of board diversity. Journal of Management & Governance, 20, 447-483. https://doi.org/10.1007/s10997-014-9307-8.
    85. The Hindu (2022), “Deloitte Global Women in the Boardroom report seventh addition “ available at: https://www.thehindu.com/education/careers/boardroom-diversity-in-indiaincreasing-at-a-snails-pace/article38401398.ece(accessed 12 April 2024).
    86. Usman, M., Zhang, J., Wang, F., Sun, J., & Makki, M. A. M. (2018). Gender diversity in compensation committees and CEO pay: evidence from China. Management Decision, 56(5), 1065-1087. https://doi.org/10.1108/MD-09-2017-0815.
    87. World Economic Forum. (2022) Global Gender Gap Report 2022 : Insight Report July 2022: https://www3.weforum.org/docs/WEF_GGGR_2022.pdf(accessed 10 April 2024).
    88. Xie, F., Guo, Y., Daniel, S. J., & Liu, Y. (2024). The dynamic relation between board gender diversity and firm performance: the moderating role of shareholder activism. Review of Quantitative Finance and Accounting, 62(1), 225-246. https://doi.org/10.1007/s11156-023-01201-z.

  • Downloads

  • How to Cite

    Kaur , S. ., & Kang , D. L. S. . (2025). Unraveling Board Gender Dynamics and Firm PerformanceInsights from The Indian IT Sector. International Journal of Accounting and Economics Studies, 12(8), 628-637. https://doi.org/10.14419/d3g01h63