Diversity and the Performance of Selected Financial Institutions of Asia

  • Shafaque Fatima Department of Education and Learning Sciences, Iqra University, Gulshan Campus, Karachi, Pakistan
  • Saqib Sharif Department of Finance, Institute of Business Administration (IBA), Karachi, Pakistan


Linking with the business case for diversity, this study examines whether the top management team (TMT) and the board of directors (BODs) diversity has a positive impact on financial institution (FI) performance in select countries of Asia least researched domain. We use data from 119 financial institutions across Asia for the year 2015, initially 1,447 institutions; however, incomplete data was excluded from final analysis. We use three proxies for diversity, that is, nationality diversity, gender diversity, and age diversity of TMT and BODs. To investigate the impact of TMT and BODs diversity, cross-sectional ordinary least-squares estimation is applied, using Return on Average Assets (ROAA%) as a measure of performance.  We find that nationality diversity and age diversity is positively and significantly related to FIs performance. Our evidence indicates that executives and board members with diverse exposure and younger age improve FIs profitability. However, there is no significant relationship between gender and FIs performance.

How to Cite
FATIMA, Shafaque; SHARIF, Saqib. Diversity and the Performance of Selected Financial Institutions of Asia. Sukkur IBA Journal of Economics and Finance, [S.l.], v. 2, n. 1, p. 1-9, sep. 2018. ISSN 2616-7549. Available at: <http://journal.iba-suk.edu.pk:8089/SIBAJournals/index.php/SIJEF/article/view/198>. Date accessed: 20 june 2019. doi: https://doi.org/10.30537/sijef.v2i1.198.

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