Female Board Representation and Firm Market-based Performance: A Moderated Mediation Analysis in the Indian Context

India has mandated at least one woman to be on company boards, starting in October 2014. This study aims to investigate the impact of female board members on market-based firm performance, using data from a sample of S&P Bombay Stock Exchange (BSE) 500-listed firms from 2015 to 2022. By incorporating social theory and stakeholder theory, the study examines the circumstances under which female board members influence firm performance. Additionally, the study explores how their positive influence on sustainable practices affects market performance. The role of firm innovation intensity in moderating this connection is also explored. The study utilizes structural equation modeling (SEM) and PROCESS macro for quantitative empirical analysis. The results indicate that having female board representation is a strategic choice that significantly impacts a company’s performance in the market. The findings also reveal that when companies prioritize innovation, the presence of female board members has a positive influence. Overall, this research supports the “business case” argument, suggesting that female board representation through sustainability mechanisms can enhance market performance. The study’s outcomes provide valuable insights for investors, practitioners, and policymakers.