The Moderating Role of Woman in the Board of Directors on the Impact of Disclosing Corporate Social Accountability on their Performance: Evidence from Palestine Stock Exchange رسالة ماجستير

Abstract

The purpose of the present study was to explore how the presence of women on the boards of directors (WOB) functions as a mediator/moderator between CSRD and FP; an important consideration given that over 40% of companies (48 companies) listed on the PEX have very limited social disclosures and have very few women on their boards. The sample of this study was purposive and included 13 Financial Services companies from these 48 companies that were appropriate for the purpose of the study due to access to data and relevance to the research objectives as identified from the research review of the literature. A quantitative methodology with panel data was used to assess CSRD using an index based on four dimensions (environment, employee, community, customer) and FP using the metrics of ROE, EPS, EVA, and Tobin's Q (a commonly used composite measure of FP). WOB were measured as a percentage of female board members compared to male board members. The analysis of this data used a FIXED EFFECTS regression model, which applies appropriate statistical techniques to ensure the validity and reliability of these findings for panel data. The study results suggest that the financial market appears to value transparency and the presence of women on boards of directors over time, as measured by Tobin's Q, while in the short term, companies experience negative impacts on their books in terms of ROE and EPS. The presence of Women on Boards (WOB) and the relationship between Corporate Social Responsibility Disclosure (CSRD) and Financial Performance (FP) is not stronger but rather a negative moderating impact on market value. The authors recommend that future studies focus their efforts on measuring substantive performance related to Corporate Social Responsibility (CSR) through actual social investment and environmental impact as opposed to the mere presence of disclosures regarding CSR. Additionally, the qualitative role of women in boardrooms should also be analyzed, including their roles on committee memberships and whether or not they are independent, to help ascertain their true impacts on the moderating effects. Finally, the authors recommend that future studies utilize advanced econometric techniques such as the Generalized Method of Moments (GMM) to address issues related to the possibility of endogeneity, thus providing a clearer basis for drawing conclusions regarding cause-and-effect relationships, while expanding the range of studies to cover industries beyond the MENA region and potentially expanding the range of studies beyond only developing economies