The Complexity of Interaction between Executive Board Gender Diversity and Financial Performance: A Panel Analysis Approach Based on Random Effects

This study examined the influence of executive board directors’ gender diversity on financial performance listed companies Bucharest Stock Exchange, for period 2011 to 2019. The analysis composition and different characteristics directors proved be effective tools corporate governance in countries with an emerging capital market. Therefore, a disclosure index was used moderate interaction between performance, based theoretical framework provided by upper echelon theory. contributes enrichment literature both using composite indicator built applying multiway PCA method panel data express designing ten EGLS models involving five indicators two proxies diversity. results showed that there is positive impact proportion women measured through index, ROA, ROE, SOL. A statistically significant found only SOL, case Blau index. Also, random-effects model perform analysis, higher size can associated better EPS. Practical implications are executives’ composition, complexity relationship board, reshaping practices.