DO BOARD DIVERSITY AND HIGH PERFORMANCE GO HAND-IN-HAND IN THE BANKING SECTOR?

The main objective of the present study is to investigate the board of directors' diversity impact on banks' financial performance. The analysis was made on the Romanian bank system, during 2019 - 2020. The board of directors' diversity was measured through the presence of the woman i...

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Bibliographic Details
Published in:TRANSFORMATIONS IN BUSINESS & ECONOMICS 2023-01, Vol.22 (1), p.205
Main Authors: Feleaga, Liliana Ionescu, Ionescu, Bogdan Stefan, Bunea, Mariana
Format: Article
Language:English
Subjects:
Averages
Banking
Banking industry
Boards of directors
Chairman of the board
Citizenship
Financial performance
Profitability
Research methodology
Return on assets
Statistical analysis
Women
Workplace diversity
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Summary:The main objective of the present study is to investigate the board of directors' diversity impact on banks' financial performance. The analysis was made on the Romanian bank system, during 2019 - 2020. The board of directors' diversity was measured through the presence of the woman in the board of directors' structure, average age and the nationality of the board members and the profitability of the bank system was analysed by using the financial indicator ROA (return on assets). The research methodology used was mostly quantitative, with the authors performing a deductive statistical analysis by using a series of testing objectives and potential cause-effect links. The findings of the paper indicate that there is a direct correlation between the board of directors' members average age and ROA, in 2019, and an indirect link with a low intensity between the members' nationality and the bank's profitability, in 2020. Our results provide no evidence for the presence of women on boards of directors and the banks' financial performance.
ISSN:1648-4460
2538-872X