Impact of Female Presence in Top Management Positions on Sustainability Performance Gender Diversity In Top Management Team and Sustainability Performance

Abstract

This study investigates the impact of female representation on the board of directors and the upper management team on sustainability performance in the banking industry of South Asia. This study is an attempt, based on past literature, to frame gender diversity in terms of the way it affects financial, social, and environmental performance. The 172 banks in the study's sample, which covers the years from 2018 to 2022, are from 8 South Asian nations. For estimations, GMM and Probit analysis is used. The findings show that the number of female directors enhances both environmental and financial performance; whereas female managers place more importance on the social component and stakeholder engagement. This study suggests that banks should give attention to their efforts on hiring a suitable proportion of female directors and managers. This research also has beneficial implications that support gender equality among regulators and policymakers.