Gender-Inclusive Boards and Firms' Financial Performance: Evidence from UAE

Marie-Therese Claes
Vienna University of Economics and Business (WU), Vienna, Austria

Abstract

This study examines the relationship between board gender inclusion and firm financial performance in listed companies in the United Arab Emirates (UAE). The UAE represents a distinctive institutional and managerial context due to recent corporate governance reforms aimed at enhancing women’s participation in boardrooms. Using cross-sectional data from 2023, the analysis covers 141 UAE-listed firms across multiple sectors. Board composition data were obtained from corporate disclosures, while financial indicators were collected from publicly available financial reports and stock market records. The study employs correlation analysis to explore associations between women’s board representation and key financial fundamentals, including Total Assets, Common Equity, Net Sales/Revenues, Net Income, Return on Assets, Return on Equity, and revenue growth indicators. The findings reveal that firms with higher female representation on boards tend to exhibit significantly stronger financial fundamentals in terms of Total Assets, Common Equity, Net Sales/Revenues, and Return on Assets. These results suggest that gender-inclusive boards are associated with greater firm scale and more efficient asset utilization. However, no statistically significant relationships are observed with Net Income, Return on Equity, or revenue growth rates, indicating that the influence of women’s board participation may not be uniform across all performance dimensions. Further analysis highlights the importance of board independence. Independent female directors show significant positive associations with Total Assets and Net Sales/Revenues, implying that independence may enhance women’s strategic contribution to firm oversight and resource allocation. Overall, the study provides UAE-specific managerial insights into how gender inclusion at the board level aligns with core financial performance rather than short-term profitability or growth. The findings contribute to the growing management and governance literature by offering evidence from an emerging market context and by emphasizing the relevance of board composition for financial stability and organizational structure.

Presentation