Exploring the Impact of Women Directors’ Education on Corporate Financial Performance: Evidence from Indian Firms

Abstract

This research aims to understand the relation of female directors’ education qualifications with the financial performance of Indian corporations. Using an exploratory approach, the study is analyzed based on data from 452 firms in BSE 500 index between 2014 and 2023, while the financial performance of these firms is measured by Return on Assets (ROA) and Tobin’s Q. Our results indicate that there is a positive and significant association between the educational levels of women directors and corporate financial performance, which supports the proposition that the more educated directors are, the more qualified they would be taking decisions and apply strategic insights. Finally, the research shows that women executives who are educated provide intellectual capital and help create an efficient, innovative board, strengthening board governance. Additionally, the study supports the potential of merit-based selection policies as a means to support board diversity and thwart tokenism. This brings hope for diversity as educational qualifications in an appointment should be taken earnestly in both gender and corporate governance discourse. In addition to financial outcomes, the research argues for the inclusion of leadership with diverse educational backgrounds that enhance the organization’s perspectives and inject requirements for enhanced governance mechanisms.