Women directors, network and firm performance in Thailand

Abstract

This study focuses on the impact of female directors on firm performance in Thailand. The network between female directors and firm shareholders or board members are detected and tested against firm performance. The sample of this study is firms listed on Stock Exchange of Thailand (SET) during the year 2000- 2009. In a sample of Thai firms, I find that the trend of having female directors in boardroom is flat. The pattern of gender composition or percentage of board seats held by female in boardroom is constant overtime. From this study, I show that female directors have a significant impact on firm performance. In general, female directors in boardrooms have negative impact on firm performance. Nevertheless, female directors help improve performance in firms that are classified as busy firm which normally have significant negative impact on firm performance. This result suggests that gender-diverse board allocate more effort to monitoring. Moreover, female directors who have family network with high control majority shareholders have significant positive impact that help improve firm performance. Also, Female directors who have alumni network add value to firm. The results suggest that the network or connection can be viewed as the effective tool that, in some way, bring value and help firm to enhance firm performance.