Does board diversity affect firm performance in Kuwait?

Abstract

Purpose This paper examines the consequences of board diversity in Kuwait. The purpose of this study is to measure the impact of gender, age and national diversity on firm performance (FP). Design/methodology/approach This work uses data from 103 non-financial Kuwaiti listed companies in the period from 2010 to 2017. The data was collected from secondary sources such as annual reports and S&P Capital IQ. FP is measured by return on assets, return on equity and Tobin’s Q. The independent variables are gender diversity, age diversity and nationality diversity. Findings The findings show mixed results regarding gender, age, national diversity and FP. Originality/value Board diversity is a relatively underexplored area in the context of the Gulf Cooperation Council countries, including Kuwait. The originality and value of examining the impact of gender, age and nationality diversity on FP in Kuwait are multifaceted, highlighting unique cultural, economic and regulatory aspects.