Transformations  in
Business & Economics

DO BOARD DIVERSITY AND HIGH PERFORMANCE GO HAND-IN-HAND IN THE BANKING SECTOR?
Liliana Ionescu Feleaga, Bogdan Stefan Ionescu, Mariana Bunea

ABSTRACT: The main objective of the present study is to investigate the board of directors’ diversity impact on banks’ financial performance. The analysis was made on the Romanian bank system, during 2019 - 2020. The board of directors’ diversity was measured through the presence of the woman in the board of directors’ structure, average age and the nationality of the board members and the profitability of the bank system was analysed by using the financial indicator ROA (return on assets). The research methodology used was mostly quantitative, with the authors performing a deductive statistical analysis by using a series of testing objectives and potential cause-effect links. The findings of the paper indicate that there is a direct correlation between the board of directors’ members average age and ROA, in 2019, and an indirect link with a low intensity between the members’ nationality and the bank's profitability, in 2020. Our results provide no evidence for the presence of women on boards of directors and the banks’ financial performance.

KEYWORDS:  board of directors, financial performance, diversity, banking sector.

JEL classification:  M40, G20, G30.