Board gender diversity, human resources development and firm performance of deposit money banks in Nigeria

Abstract

This study examines the direct impact of women on the board on firm performance of Deposit Money Banks (DMBs) in Nigeria as well as the moderating role of human resources development on the relationship between gender diversity and firm performance. The study adopted a sample size of ten (10) banks from a total population of fifteen (15) listed DMBs on the Nigerian Exchange Group and relevant research information was extracted from the annual reports and accounts of the sampled banks for a period of ten years from 2013 to 2022. Generalized Least Square (GLS) regression and robust Ordinary Least Square (OLS) techniques were used to test the study’s hypotheses. The results showed that board gender diversity has significant impact on Tobins Q but not on ROA of listed DMBs. It was also found that board independence has a positive and significant impact on performance. The finding of the study also revealed that human capital development used as moderating variable improved the positive impact of gender diversity on firm performance. The study recommends that the management of listed DMBs in Nigeria should increase the number of women on their board in order to influence their performance. Also, the study recommends that the management of the DMBs should increase the level of their spending employees’ training and development in order to improve/increase their performance.