Abstract:
This study examined whether the presence of women in top management positions
affects firms‘ performance. This study became necessary given that, whilst there is a
growing call for gender equity in top managerial positions, many companies are still
hesitant, as some trust that the presence of women in top management positions
might weaken their market value.
The main purpose of this research was to analyse the link between women in top
management positions and net profit, sales turnover and share price. Secondary
data on women in top management positions and companies‘ performance were
collected from integrated report archives of twenty-nine (29) companies listed in the
FTSE/JSE Responsible index for six years, 2010 to 2015. This study was
theoretically inclined on the Resource Based Theory and related current literature.
A quantitative research design was adopted. Regression statistics utilizing the Excel
Spreadsheet software was used for data analysis. Findings from the statistical
analysis disclosed the following: within the twenty-nine (29) companies examined,
firstly, existing positive relationship between women in top management and net
profit, although not significant. Secondly, there was a negative relationship between
women in top management and sales turnover. Thirdly, there was a positive
relationship between women in top management and share price, although not
significant.
The research implication and contribution are that companies that encourage women
to ascend management positions may not necessarily lose market value and net
profit as feared by some companies around the world. In addition, the study
recommends that women in top management should have a deputy that works
closely with them such that when they take family leave, these deputies will function
without company performance, such as sales, dropping its value. The findings
provide further research agenda on the linkage between women in top management
positions, net profit, sales turnover and share price using a larger sample of
companies across industries.
