Board Gender Diversity and Bank Performance in Tunisia
Purpose: This study examines the impact of board gender diversity (BGD) on the performance of the banking sector in Tunisia. Given that gender bias tends to be more pronounced in Tunisia’s socio-cultural context compared to more developed environments, the research focuses on an understudied area: how gender diversity within boards contributes to corporate governance and business performance in Tunisian banks. The study also explores how aligning management with stakeholder interests through board diversity can enhance organizational outcomes. Design/Methodology/Approach: This research adopts a quantitative approach using longitudinal panel data. The study analyzes 207 bank-year observations from 2015 to 2023. To ensure robust analysis, the research employs ordinary least squares (OLS), fixed effects, and random effects models. These econometric methods are used to examine the relationship between board gender diversity (BGD) and Tobin’s Q, a market-based indicator of firm performance. Findings: The results show a positive relationship between board gender diversity and market-based performance indicators. The model demonstrates strong explanatory power with a coefficient of determination (R²) of 73.91%. The findings indicate that Tobin’s Q increases by approximately 41.6% for every unit increase in BGD, suggesting that greater gender diversity on boards is associated with improved bank performance. The outcomes also support the agency theory and resource dependence theory, highlighting the role of diverse boards in enhancing decision-making and governance effectiveness. Practical Implications: The findings suggest that increasing gender diversity on corporate boards can strengthen governance quality and improve financial performance in banks. Policymakers, regulators, and financial institutions in Tunisia may consider promoting gender-inclusive board structures as a strategy to enhance decision-making, stakeholder alignment, and overall organizational performance. Originality/Value: This study contributes to the limited literature on board gender diversity within the Tunisian banking sector, particularly in emerging economies with strong socio-cultural gender norms. By providing empirical evidence from recent longitudinal data (2015–2023) and employing multiple econometric models, the research offers robust insights into how gender-diverse boards contribute to bank performance and governance effectiveness.