Gender Diversity and Stock Returns: Evidence from Nigerian Listed Deposit Money Banks

Aim: Gender diversity has gained significant and increased popularity, attention and interest worldwide. Nonetheless, empirical findings on its efficacy as a determinant of market value of banks in Nigeria are uncommon as well as inconclusive. This study examined the influences of three gender diversities (employee, top management & board), three other board mechanisms (board size, board independence & foreign diversity), and three institutional factors (bank size, age & earnings per share, EPS) on market price per share (MPS). Study Design and Methodology: Sourcing annual panel data of a sample of 12 out of an average population of 14 listed Deposit Money Banks (DMBs) from 2004 through 2023, the study employed Panel System Generalised Method of Moments (PSGMM) to examine empirical relationships between gender diversities, board mechanisms and institutional factors on one hand, and MPS on the other. Place and Duration of Study: This study examined the role of gender diversities, other board characteristics and firm specific factors of Deposit Money Banks (DMBs) listed on the Nigerian Stock Exchange between 2004 and 2023. Results: In congruence with the agency, stakeholder and resource dependence theories of corporate governance and the position of earlier scholars, the findings reveal significant positive influence of top management and board gender diversities on MPS. The results also lent credence to foreign diverse boards and scale efficiency. Conclusion: Consequently, the findings suggest policies, by the CBN in collaboration with the boards of the DMBs, that encourage gender friendly top management and foreign diverse boards as well as higher total assets base as these culminate in minimum costs associated with agency and superior market value of the banks in the sample. Thus, governance codes on gender quotas in Nigerian banks should be enacted by the CBN.