Does Gender Heterogeneity Matters: The Moderating Role of Women Directors' Independence in the Indian Corporate Sector

Abstract

This study aims to examine the moderating role of the independent status of women directors on the relationship between gender heterogeneity and firm value. The empirical analysis is performed on the panel data of BSE 100 companies for the period of 10 years from the year 2009 to 2018. Generalized Method of Moments is employed along with Fixed Effects Model while controlling for firm and board-specific variables to examine the relationship between gender heterogeneity and firm value. Moderation impact on this relationship is also analyzed empirically as well as graphically. Results show a negative impact of board gender heterogeneity on the value of a firm. Also, there is a negative moderation effect of women independent directors on the relationship between gender heterogeneity and firm value. Empirical findings of the present study contribute to the current discourse of gender heterogeneity and depict the Indian scenario of corporate boards in this context. This is the first study examining the moderating role of women independent directors on the relationship between board gender heterogeneity and the value of a firm in the Indian climate.