The Complexity of Interaction between Executive Board Gender Diversity and Financial Performance: A Panel Analysis Approach Based on Random Effects
Table 1
Summary of variables.
Variables description
Abbreviation of variables
Measurement
Return on equity
ROE
Net profit/equity
Return on assets
ROA
Net profit/total assets
Earnings per share
EPS
Net profit/average number of ordinary shares outstanding for the reported year
Solvability
SOL
Total assets/total liabilities
Financial performance index
FP_index
Composite indicator built by applying MPCA based on panel data
Disclosure index
D_index
, where xi = scores given according to the disclosure degree of the information on managers’ characteristics and n = number of characteristics
Blau index
BI
, where Pi is the percentage of women and men on the board and n is 2 describing the number of categories (women and men)
Women on board
RWD
The proportion of women on the executive board of directors
Board size
BS
Number of top executive managers on the management board
Corporate governance report
GOV_R
Publication of the governance report within the annual report of the analyzed companies
Audit report
Big4_R
Publication of the audit report prepared by Big4 within the annual report of the selected companies
Industry
Ind dummy
Industry dummy variables for each of the eight industries, having an industry as a benchmark to avoid dummy variable trap and year dummy variables for each year from 2011 to 2019.