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Diverse Boards, Stronger Results? Gender Diversity on Boards and Firm Performance in Turkey

Year 2025, Volume: 12 Issue: 2, 519 - 527, 13.08.2025

Belgin Bahar , Elgiz Yılmaz Altuntaş

https://doi.org/10.26650/JEPR1716025

Abstract

Board diversity has become a prominent topic of discussion within the realm of strategic management. This study specifically examines gender diversity as a key dimension of board heterogeneity. Notably, women remain under represented on corporate boards in general. In Turkey, the inclusion of women on corporate boards and efforts to enhance gender diversity are relatively recent developments. In 2012, for the first time in Turkey, the Capital Markets Board recommended that companies have at least one woman on their boards of directors. This study examines the effectiveness of Turkey’s first “soft law” quota concerning board gender diversity within the banking sector. Additionally, it investigates the relationship between gender diversity on corporate boards and firms’ financial performance (ROA). Using a large panel data of 12 banks from 2006 to 2018, we found a significant relationship between female representation on boards and ROA.

JEL Classification : J16 , G34 , M14

Keywords

Female board representation Financial performance Board diversity Corporate governance

References

  • Adams, R. B., & Ferreira, D. (2009). Women in the boardroom and their impact on governance and performance. Journal of Financial Economics, 94(2), 291-309. https://doi.org/10.1016/j.jfineco.2008.10.007 google scholar
  • Atılgan, Ö. (2017). Yönetim kurulu büyüklüğü, bağımsız üye oranı ve kadın üye oranı ile finansal performans ilişkisi. Dokuz Eylül Üniver^ sitesi İktisadi İdari Bilimler Fakültesi Dergisi, 32(2), 315-354. google scholar
  • Bear, S., Rahman, N., & Post, C. (2010). The impact of board diversity and gender composition on corporate social responsibility and firm reputation, Journal of Business Ethics, 97(2), 207–221. https://doi.org/10.1007/s10551-010-0505-2 google scholar
  • Beiner, S., Drobetz, W., Schmid, F., & Zimmermann, H. (2004). Is board size an independent corporate governance mechanism?. Kyk^ los, 57(3), 327-356. google scholar
  • Carter, D. A., D'Souza, F., Simkins, B. J., & Simpson, W. G. (2010). The gender and ethnic diversity of US boards and board committees and firm financial performance. Corporate governance: an international review, 18(5), 396-414. https://doi.org/10.1111/j.1467-8683. 2010.00809.x google scholar
  • Karayel, M & Doğan, M. (2014). Yönetim kurulunda cinsiyet çeşitliliği ve finansal performans ilişkisi: BİST 100 şirketlerinde bir araştırma. Süleyman Demirel Üniversitesi İktisadi ve İdari Bilimler Fakültesi Dergisi, 19(2), 75-88. google scholar
  • Liu, Y., Wei, Z., & Xie, F. (2014). Do women directors improve firm performance in google scholar
  • China?. Journal of Corporate Finance, 28, 169-184. https://doi.org/10.1016/j.jcorpfin.2013.11.016 google scholar
  • Lucas-Pérez, M. E., Mínguez-Vera, A., Baixauli-Soler, J. S., Martín-Ugedo, J. F., & Sánchez-Marín, G. (2015). Women on the board and managers’ pay: Evidence from Spain. Journal of Business Ethics, 129, 265-280. google scholar
  • Nair, N., & Vohra, N. (2015). Diversity and inclusion at the workplace: a review of research and perspectives. IIMA Working Paper Series No WP2015-03-34. google scholar
  • Reddy, S., & Jadhav, A. M. (2019). Gender diversity in boardrooms–A literature review. Cogent Economics & Finance, 7(1), 1644703. https:// doi.org/10.1080/23322039.2019.1644703 google scholar
  • Rose, C. (2007). Does female board representation influence firm performance? The Danish evidence. Corporate governance: An inter^ national review, 15(2), 404-413. google scholar
  • Sarhan, A. A., Ntim, C. G., & Al‐Najjar, B. (2019). Board diversity, corporate governance, corporate performance, and executive pay. Inter^ national Journal of Finance & Economics, 24(2), 761-786. https://doi.org/10.1002/ijfe.1690 google scholar
  • Taşkın, D., & Mandacı, P. E. (2017). Şirket Yönetim Kurulu’ndaki Kadın Üyelerin Firma Performansına Etkisi. Dokuz Eylül Üniversitesi İşletme Fakültesi Dergisi, 18(1), 29-45. google scholar
  • Terjesen, S., Aguilera, R. V., & Lorenz, R. (2015). Legislating a woman’s seat on the board: Institutional factors driving gender quotas for boards of directors, Journal of Business Ethics, 128(2), 233–251. google scholar

Year 2025, Volume: 12 Issue: 2, 519 - 527, 13.08.2025

Belgin Bahar , Elgiz Yılmaz Altuntaş

https://doi.org/10.26650/JEPR1716025

Abstract

References

  • Adams, R. B., & Ferreira, D. (2009). Women in the boardroom and their impact on governance and performance. Journal of Financial Economics, 94(2), 291-309. https://doi.org/10.1016/j.jfineco.2008.10.007 google scholar
  • Atılgan, Ö. (2017). Yönetim kurulu büyüklüğü, bağımsız üye oranı ve kadın üye oranı ile finansal performans ilişkisi. Dokuz Eylül Üniver^ sitesi İktisadi İdari Bilimler Fakültesi Dergisi, 32(2), 315-354. google scholar
  • Bear, S., Rahman, N., & Post, C. (2010). The impact of board diversity and gender composition on corporate social responsibility and firm reputation, Journal of Business Ethics, 97(2), 207–221. https://doi.org/10.1007/s10551-010-0505-2 google scholar
  • Beiner, S., Drobetz, W., Schmid, F., & Zimmermann, H. (2004). Is board size an independent corporate governance mechanism?. Kyk^ los, 57(3), 327-356. google scholar
  • Carter, D. A., D'Souza, F., Simkins, B. J., & Simpson, W. G. (2010). The gender and ethnic diversity of US boards and board committees and firm financial performance. Corporate governance: an international review, 18(5), 396-414. https://doi.org/10.1111/j.1467-8683. 2010.00809.x google scholar
  • Karayel, M & Doğan, M. (2014). Yönetim kurulunda cinsiyet çeşitliliği ve finansal performans ilişkisi: BİST 100 şirketlerinde bir araştırma. Süleyman Demirel Üniversitesi İktisadi ve İdari Bilimler Fakültesi Dergisi, 19(2), 75-88. google scholar
  • Liu, Y., Wei, Z., & Xie, F. (2014). Do women directors improve firm performance in google scholar
  • China?. Journal of Corporate Finance, 28, 169-184. https://doi.org/10.1016/j.jcorpfin.2013.11.016 google scholar
  • Lucas-Pérez, M. E., Mínguez-Vera, A., Baixauli-Soler, J. S., Martín-Ugedo, J. F., & Sánchez-Marín, G. (2015). Women on the board and managers’ pay: Evidence from Spain. Journal of Business Ethics, 129, 265-280. google scholar
  • Nair, N., & Vohra, N. (2015). Diversity and inclusion at the workplace: a review of research and perspectives. IIMA Working Paper Series No WP2015-03-34. google scholar
  • Reddy, S., & Jadhav, A. M. (2019). Gender diversity in boardrooms–A literature review. Cogent Economics & Finance, 7(1), 1644703. https:// doi.org/10.1080/23322039.2019.1644703 google scholar
  • Rose, C. (2007). Does female board representation influence firm performance? The Danish evidence. Corporate governance: An inter^ national review, 15(2), 404-413. google scholar
  • Sarhan, A. A., Ntim, C. G., & Al‐Najjar, B. (2019). Board diversity, corporate governance, corporate performance, and executive pay. Inter^ national Journal of Finance & Economics, 24(2), 761-786. https://doi.org/10.1002/ijfe.1690 google scholar
  • Taşkın, D., & Mandacı, P. E. (2017). Şirket Yönetim Kurulu’ndaki Kadın Üyelerin Firma Performansına Etkisi. Dokuz Eylül Üniversitesi İşletme Fakültesi Dergisi, 18(1), 29-45. google scholar
  • Terjesen, S., Aguilera, R. V., & Lorenz, R. (2015). Legislating a woman’s seat on the board: Institutional factors driving gender quotas for boards of directors, Journal of Business Ethics, 128(2), 233–251. google scholar
There are 15 citations in total.

Details

Primary Language English
Subjects Policy of Treasury, Microeconomics (Other)
Journal Section RESEARCH ARTICLE
Authors

Belgin Bahar 0000-0003-3347-3085

Elgiz Yılmaz Altuntaş 0000-0002-3486-1701

Publication Date August 13, 2025
Submission Date June 8, 2025
Acceptance Date July 22, 2025
Published in Issue Year 2025 Volume: 12 Issue: 2

Cite

APA Bahar, B., & Yılmaz Altuntaş, E. (2025). Diverse Boards, Stronger Results? Gender Diversity on Boards and Firm Performance in Turkey. İktisat Politikası Araştırmaları Dergisi, 12(2), 519-527. https://doi.org/10.26650/JEPR1716025
AMA Bahar B, Yılmaz Altuntaş E. Diverse Boards, Stronger Results? Gender Diversity on Boards and Firm Performance in Turkey. JEPR. August 2025;12(2):519-527. doi:10.26650/JEPR1716025
Chicago Bahar, Belgin, and Elgiz Yılmaz Altuntaş. “Diverse Boards, Stronger Results? Gender Diversity on Boards and Firm Performance in Turkey”. İktisat Politikası Araştırmaları Dergisi 12, no. 2 (August 2025): 519-27. https://doi.org/10.26650/JEPR1716025.
EndNote Bahar B, Yılmaz Altuntaş E (August 1, 2025) Diverse Boards, Stronger Results? Gender Diversity on Boards and Firm Performance in Turkey. İktisat Politikası Araştırmaları Dergisi 12 2 519–527.
IEEE B. Bahar and E. Yılmaz Altuntaş, “Diverse Boards, Stronger Results? Gender Diversity on Boards and Firm Performance in Turkey”, JEPR, vol. 12, no. 2, pp. 519–527, 2025, doi: 10.26650/JEPR1716025.
ISNAD Bahar, Belgin - Yılmaz Altuntaş, Elgiz. “Diverse Boards, Stronger Results? Gender Diversity on Boards and Firm Performance in Turkey”. İktisat Politikası Araştırmaları Dergisi 12/2 (August2025), 519-527. https://doi.org/10.26650/JEPR1716025.
JAMA Bahar B, Yılmaz Altuntaş E. Diverse Boards, Stronger Results? Gender Diversity on Boards and Firm Performance in Turkey. JEPR. 2025;12:519–527.
MLA Bahar, Belgin and Elgiz Yılmaz Altuntaş. “Diverse Boards, Stronger Results? Gender Diversity on Boards and Firm Performance in Turkey”. İktisat Politikası Araştırmaları Dergisi, vol. 12, no. 2, 2025, pp. 519-27, doi:10.26650/JEPR1716025.
Vancouver Bahar B, Yılmaz Altuntaş E. Diverse Boards, Stronger Results? Gender Diversity on Boards and Firm Performance in Turkey. JEPR. 2025;12(2):519-27.
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