Impact of Board Gender Diversity, Audit Quality, and Ownership Concentration on Firm Performance: A Study of Family and Non-Family Firms in Pakistan

Abstract

This research investigates the effect of Board gender diversity, audit quality, and ownership concentration on firm performance. The firms are family and non-family. Using panel data from 125 non-financial firms listed on the PSX during a five-year period (2015-2019). This study uses many statistical analyses, including descriptive statistics, correlation, and choose fixed effect model on the bases Hausman test. This study measured firm performance using three performance parameters i.e Return on assets, Tobin’s Q and Return on equity. The study's findings suggest that board gender diversity improves both market-based performance (Tobin's Q) and accounting-based performance (ROA). The result suggests that increases in the board diversity will improve both accounting and market-based firm performance. Audit quality has been shown to have a favorable influence on market performance. It shows that improving audit quality will improve Performance of firms in the context of market-based. While ownership concentration and family-owned businesses have an insignificant effect on overall performance. These findings are helpful for businesses and investors, influencing decision-making processes and enhancing corporate governance structures to improve financial performance and sustainability.