Understanding the effects of gender equality on company's performance : a global mid‐cap companies' perspective

Tools

Dahiya, Rekha and Usmani, Asjad and Kumar, Arvind (2025) Understanding the effects of gender equality on company's performance : a global mid‐cap companies' perspective. Journal of Public Affairs, 25 (2). e70028. ISSN 1472-3891 (https://doi.org/10.1002/pa.70028)

[thumbnail of Dahiya-etal-JPA-2025-Understanding-the-effects-of-gender-equality-on-companys-performance] Text. Filename: Dahiya-etal-JPA-2025-Understanding-the-effects-of-gender-equality-on-companys-performance.pdf
Accepted Author Manuscript
Restricted to Repository staff only until 10 April 2027.
License: Strathprints license 1.0
Download (1MB) | Request a copy

Abstract

The present study is conceived with the objective of assessing gender equality measures in mid-cap corporations and analysing the influence on company's performance. Based on gender equality scores of top 50 companies from Equileap's 2022 gender equality list; financial performance data from annual reports; and corporate responsibility scores from Sustainalytics, this study reveals that mid-cap companies fared poorly on all gender equality metrics and does not completely embrace gender equality. Less than 50% of women directors are found on the boards of 70% of mid-cap corporations. Women represented only 42% of company board of directors' positions and 32% of the executive leadership positions. A mean pay gap of 13.54% is observed in 85% of the mid-cap companies. Gender equality accounted for 26% variation in the mid-cap firms' financial performance. Initiatives to promote gender equality though do not affect the responsible behaviour of the mid-cap firms. Novelty of the study lies in testing the gender equality claims of mid-cap companies labelled as ‘top gender equal’ organisations across different sectors and ascertaining the influence of board's gender equality on firm's financial performance and responsible behaviour. The study makes a unique contribution to gender equality literature by proving that financial indicators are not enough to motivate corporate to truly embrace gender equality. Neither aspect like flexible working, training and work–life balance can be projected as the only measures for solving the issue of gender inequality. Results also contribute to social justification theory's literature by highlighting the fact that the theory promotes the ‘social stability’ or ‘status quo’ more than advancing the ‘social change’ when applied in the context of gender equality.

ORCID iDs

Dahiya, Rekha, Usmani, Asjad and Kumar, Arvind ORCID logoORCID: https://orcid.org/0000-0002-9590-8438;
  • Item type:Article
    ID code:92748
    Dates:
    Date
    Event
    May 2025
    Published
    10 April 2025
    Published Online
    1 April 2025
    Accepted
    18 December 2023
    Submitted
    Notes:This is the peer reviewed version of the following article: Dahiya, R, Usmani, A & Kumar, A 2025, 'Understanding the effects of gender equality on company's performance: a global mid‐cap companies' perspective', Journal of Public Affairs, vol. 25, no. 2, e70028, which has been published in final form at https://doi.org/10.1002/pa.70028. This article may be used for non-commercial purposes in accordance with Wiley Terms and Conditions for Use of Self-Archived Versions. This article may not be enhanced, enriched or otherwise transformed into a derivative work, without express permission from Wiley or by statutory rights under applicable legislation. Copyright notices must not be removed, obscured or modified. The article must be linked to Wiley’s version of record on Wiley Online Library and any embedding, framing or otherwise making available the article or pages thereof by third parties from platforms, services and websites other than Wiley Online Library must be prohibited.
    Subjects:Social Sciences > Commerce > Business
    Department:Strathclyde Business School > Marketing
    Strathclyde Business School
    Depositing user: Pure Administrator
    Date deposited:06 May 2025 09:26
    Last modified:06 May 2025 09:26
    URI:https://strathprints.strath.ac.uk/id/eprint/92748
CORE (COnnecting REpositories)