Gender diversity, corporate governance disclosure and financial performance: empirical evidence from South Africa

Purpose – The aim of the research is to examine the extent and the quality of gender diversity disclosure and its impact on the firm’s financial performance. In the international arena some organizations have enacted several frameworks and guidelines in order to provide an operational guidance for the disclosure of non-financial information, in particular on social and governance issues, such as the gender diversity. Giving the growing interest on these issues, the main research objectives are: 1) an overview on the gender diversity disclosure both in terms of mandatory and voluntary reporting; 2) a comparison of the gender diversity information disclosed in Annual Reports (2009) and in Integrated Reports (2013) of a sample of South African listed companies. Design/methodology/approach –. We developed a Gender Diversity Index (GDI) based on the items required by the principles and guidelines issued by the Global Reporting Initiative (GRI G3, 2006 and GRI G4, 2013). The items regarding gender diversity refers to employment, occupational health and safety, training and education, diversity and equal opportunity and equal remuneration for women and men. This disclosure index is used in some bivariate and multivariate statistical analyses, to investigate the following research question, i.e. whether and to what extent, GDI affects the firm growth and performance. Originality/value – This research may contribute to the existing literature in regard to three different fields: 1) the studies on the field of non-financial information disclosure, in particular on Social and Governance issues and their impact on the emerging financial markets (Cormier et al., 2011; De Klerk et al., 2012); 2) the studies on the field of corporate governance disclosure focused on compliance with the issues required by the Corporate Governance Codes (Nalikka, 2009; Colaco et al., 2011; Ntim et al., 2012; 3) the studies on the field of gender diversity focused on the role of women in the board of directors and senior managers and on their influence on firm’s financial performance. Practical implications –.The research could provide useful tips on how to disclose the non-financial information on gender diversity in corporate reporting and how these items can influence the financial performance. Limitations of the research carried out: 1) size of the sample and 2) analysis focused on only country, South Africa. In addition Integrated Reporting is at an early stage, in fact there is a lack of referral guidelines and the role of accountants in the preparation of this new report is difficult and crucial.