The IUP Journal of Corporate Governance
The Impact of Appointment of Women Directors on the Financial Performance of Mining and Minerals Sector Companies in India: A Study

Article Details
Pub. Date : Jan, 2019
Product Name : The IUP Journal of Corporate Governance
Product Type : Article
Product Code : IJCG31901
Author Name : Kamal Kishore
Availability : YES
Subject/Domain : Management
Download Format : PDF Format
No. of Pages : 09



Women constitute half of the potential talent throughout the world and therefore it is important that they should lead on the economic and social fronts. Many countries across the world have realized that sustainable development of the country is possible only if they make optimum utilization of this talent pool as well. Section 149 of the Companies Act, 2013 and Clause 49 of SEBI guidelines mandated all listed companies in India to appoint at least one woman director from April 1, 2015 in a bid to bring in gender diversity on the boards in India. The percentage of women attending colleges, postgraduating and obtaining doctorate degrees has increased in the last decade in India. However, still the Indian corporate boards find it tough to find and appoint qualified women directors. The old boys’ club is still predominant in the Indian boardrooms and still resisting accepting women at leadership positions in the corporate world. Gender diversity in the boardroom is not only about fair treatment but also about tapping the potential talent which is essential for the sustainable development of the organization and the world at large. Several research studies across the world have found a positive impact of gender diversity at the board level on the financial performance of the company. In this regard, this study was conducted with 14 NSE- listed companies of mining and minerals sector of India. The study found that women were either not represented at board level or underrepresented before the quota system was introduced under the Companies Act, 2013. The study further examined the financial performance of companies before and after the mandatory requirement of appointment of at least one woman director on board, over the period of four consecutive financial years from 2013 to 2017, which revealed that the presence of women directors on boards did not significantly impact the financial performance of companies.


Gender inequality is prevalent worldwide, depriving women of their basic rights and equal opportunities. Even the United Nations Sustainable Development Program’s fifth goal is to achieve gender equality and empower all women and girls. When it comes to the corporate world, women are still underrepresented in managerial positions. As per the report by Catalyst, women held only 24% of senior roles across the world in 2018. In India, things are not different as women held only 20% of senior roles as of 2018 (Knowledge: Women in Management, 2018). Gender diversity on the boards has become an important topic of discussion across the companies all over the world due to general awareness of women empowerment and mandatory requirements pronounced by individual countries across the world.