Abstract:
Mixed findings exist in the field of research into the presence of women in management positions, and on the boards of companies, and the relationship between gender equity and financial performance. Gender equality is such a contentious issue globally, that a specific UN sustainable development goal (Goal 5) is aimed at addressing this. This study focused primarily on the representation of female directors on the boards of the Top 40 companies listed on the JSE. In recent years, the JSE has implemented gender policy disclosure requirements aimed at highlighting the problem of inequality in the boardroom. Though there has been minimal progress over the years, by 2019 only 27% of directors serving on the boards of the Top 40 JSE-listed companies are female.
Through the quantitative analysis performed, the study examined the difference between boards where 20% or more female directors are present and boards with less than 20% female directors, and their relation to financial performance which is defined by the dependent variables of annual share-price growth, annual revenue growth and return on equity. It was concluded that there is no difference in annual share-price growth and return on equity where boards have 20% or more female directors. However, a statistically significant difference is noted on annual revenue growth where 20% or more female directors are present on the board of the JSE Top 40 companies between 2015 and 2019. Furthermore the introduction of the gender disclosure policy requirement by the JSE could have influenced the growth in female directors after 2017.
