Academic journal article Kadin/Woman 2000

Do Women in Top Management Have an Impact on Banks' Profitability? the Case of North Cyprus/Ust Duzey Yonetimde Kadin Temsiliyetinin Sirket Finansal Performansma Etkisi: Kuzey Kibris Bankalari Uzerine Bir Calisma

Academic journal article Kadin/Woman 2000

Do Women in Top Management Have an Impact on Banks' Profitability? the Case of North Cyprus/Ust Duzey Yonetimde Kadin Temsiliyetinin Sirket Finansal Performansma Etkisi: Kuzey Kibris Bankalari Uzerine Bir Calisma

Article excerpt

Abstract

This study aims to investigate whether female participation in management is a valuable management tool for commercial banks in North Cyprus or not. The women in top management who are board members and branch managers are token into consideration. The article examines the commercial banks operating in North Cyprus between the years of 2003 and 2009. The analysis is made in regard to the number of females in top management and the financial performance ratios. The study can not detect any significant relationship between ROA (return on assets), the profitability measure, and the number of females on boards. However, there is a significance relationship between the board size and profitabifity and also between board size and the female member on boards. Although the number of female branch managers is comparatively higher, a negative significance is detected between profitabifity and the number of female branch managers. The results show that, there is no significant impact of women participation on boards and as branch managers on bank profitability in North Cyprus.

Keywords: gender, top management, commercial banks, bank performance, North Cyprus.

Oz

Bu calisma banka yonetim kurullarinda kadin uyelerin olmasi ile finansal performans arasinda bir iliski olup olmadigini analiz etmektedir. Bu dogrultuda 2003-2009 yillari arasinda KKTC ticari bankalari uzerine yapilan analiz sonucunda banka karliligi (aktifler uzerinde getiri) ve yonetim kurullarinda kadin sayisi arasinda herhangi bir bir iliski tesbit edilmemistir. Diger yandan, yonetim kurulu buyuklugu ve karlilik ve de kadin sayisi arasinda positif bir iliskiye rastlanilmistir. KKTC bankalarinda yonetim kurullarinda cok az sayida kadin uye olmasi cam tavan sendromunu ortaya koyarken sube mudurlerinin %40' nin kadin oldugu gorulmektedir. Analiz sonucu banka kadin sube muduru sayisi ve banka finansal performansi arasinda negatif bir iliski tesbit edilmistir. Sonuclara gore ust yonetimde ve banka sube muduru olarak kadinlarin banka karliliginda rolu oldugunu gorebilmekteyiz.

Anahtar Kelimeler: kadin, ust duzey yonetici, yonetim kurulu, banka karliligi, Kuzey Kibris.

Introduction

It is believed that having female managers influences board effectiveness as well as firm performance. However, it is widely argued that women face a glass ceiling when it comes to holding top positions in firms. Current reforms in the US and Europe require that there should be independence in corporate governance favoring not only greater diversity of opinions but also interest (Carter et al. 2003). Women also hold few board seats as well as few top management positions. In the US, women held 13.6% of Fortune 500 board seats in 2003 (Catalyst, 2003). The percentage of female directors in Australia, Canada, Japan and Europe is estimated to be 8.7%, 10.6%, 0.4% and 8%, respectively (EOWA, 2006). Furthermore, many firms have only one female director which is generally regarded as evidence of tokenism (EPWN, 2004).

This situation is likely to change because boards around the world are under increasing pressure to choose female directors. Many recent proposals for governance reform explicitly stress the importance of gender diversity in the boardroom. Moreover, the global crisis in the banking sector is opening up corporate boards to more female candidates in order to gain better corporate governance (Cabo et al. 2009).

The most extreme promotion of gender diversity occurs in Norway, where since 2006 all listed companies should have a 40% gender quota for female directors (Cabo et al. 2009). Although approximately 30% of managers in the UK corporate sector are female, women hold only 6% of non-executive director positions (Higgs, 2003). More diverse boards may also have better relations with customers, suppliers and employees (Adams and Ferreira, 2003). Nevertheless, it is not clear whether appointing more female directors will enhance board effectiveness or not. …

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