Navigating Crisis: Exploring the Impact of Gender Diversity on Firm Performance Across Contrasting Cultures in the Context of the COVID-19 Pandemic: A Comparative Study of India and Germany

Abstract

This thesis investigates the relationship between gender diversity on corporate boards and firm performance, focusing on listed companies in India and Germany from 2018 to 2023. The study explores the cultural context of these countries and the circumstantial impact of the COVID-19 pandemic on this relationship. By employing human capital theory, resource dependency theory, and agency theory, the research hypothesizes that higher female representation on boards positively correlates with firm performance, particularly in more inclusive environments like Germany. Additionally, the study examines the influence of gender diversity during crisis periods, using Tobin’s Q and Return on Assets (ROA) as proxies for firm performance. The study employs a fixed effects regression model and a difference-in-differences (DiD) approach to analyse these relationships, providing robust insights into the complexities of gender diversity's impact on firm performance. Contrary to much of the existing literature and the initial hypotheses, the findings suggest that higher female representation on boards is associated with a decrease in ROA for both Indian and German firms, challenging the business case for increasing board diversity. Furthermore, achieving a critical mass of female board members in German companies appears to negatively impact both Tobin’s Q and ROA.