Gender Diversity in Top Management and Its Impact on Firm’s Financial Performance in the Case of Ethiopian Financial Institution

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Addis Ababa University


The study has two objectives: first, to examine the impact of gender diversity in management on firm financial; second, To explore the perceptions of women and men managers of financial firms regarding the factors in the appointment of managerial position, and about women manager behaved differently compared to men in a similar position. Additional, the most essential finding for the current study - the presence of diversity in managerial position affect firm performance. Both quantitative and qualitative approaches were utilized. The sample was collect from Ethiopian in year 2005-2008. The quantitative data was taken from annual reports of the sample firms and it was analyzed using eviews version 6. Several managers were also interviewed to gain further insights and thematic analysis was utilized to analyze this qualitative data. Surprisingly, the results both quantitative analysis shows that gender diversity has positive influences on firm financial performance, which was measured by using ROA. Both women and men managers, believe that they may bring positive effect in organizational improvement, which may then enhance firm performance as a whole. This means that, gender diversity in context Ethiopian may not by itself achieve much for firm value although women managers may enhance the profitability of firms as a result of their collaborative work with management. Consequently, firms may need to carefully consider what „added value‟ is likely to result from the inclusion of women in the managerial position. Gender diversity in management and its impact on firm’s financial performance



Top Management and Its Impact