Document Type : Research Paper


Assistant Professor, Department of Accounting, Hakim Toos Higher Education institute, Mashhad. Iran



This paper investigates the impact of board gender diversity on a firm’s investment inefficiency. We document that firms with gender-diverse boards have significantly less investment inefficiency than firms without gender-diverse board and the fraction of female directors on the board is significantly negative correlated with investment inefficiency.

According to the analysis of past information, this research is a quasi-experimental type of research. Also, due to the fact that the results obtained from the research solve a specific problem or issue, in terms of practical purpose and in terms of method, it is of the type of correlation analysis with regression approach. Due to the fact that this research uses past information to test hypotheses, it is a type of post-event research. In terms of theory, the research is of the affirmative research type and in terms of reasoning, it is of the inductive type. On the other hand, this research is a type of quasi-experimental research in the field of financial and accounting research. In terms of the hypothesis testing model, the current research is considered one of the correlational researches (type of correlational research). The research data is also a type of composite data. The relationship between the independent and dependent variables of the research is investigated using the multivariate linear regression model.In order to that, the research hypothesis was based on a statistical sample consisting of 108 companies during the years 2017 to2021 and tested using multivariate regression models.

The analysis of the research sample shows that there is a significant negative relationship between the gender diversity of the board of directors and investment inefficiency. The results also showed that board independence moderates the relationship between board gender diversity and investment inefficiency. But the CEO's tenure does not moderate the relationship between the gender diversity of the board and investment inefficiency.

Research results show that gender diversity of the board of directors helps monitoring, especially when corporate governance is weak. Some researchers have found that women are more risk-taking and conservative in making investment decisions. Female directors are more likely to join supervisory committees, and boards with higher proportions of female directors use more equity-based compensation for their directors. In summary, the results show that the gender diversity of the supervisory board increases and reduces investment inefficiency. The presence of a female manager at the head of the organization as a managing director or as a member of the company's board of directors can have positive effects on improving the performance with more supervision from the female manager according to their personality characteristics and also improving the quality of providing financial reports, increasing the company's efficiency and increase productivity. Men and women, exposed to different moral development, tend to develop different values, which leads to different attitudes and behaviors. For example, men attribute value to money, progress, and power, while women are more concerned with social relationships and are interested in performing assigned tasks more effectively and are more likely to obey rules. In addition, compared to boards where all directors are men, women can present different views in the board of directors and make more informed decisions, leading to increased transparency at the level of the board of directors.


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