ABSTRACT Good corporate governance creates the properly structured board of directors capable of taking independent decisions for the welfare of the company. Women directors with varied backgrounds and experiences tend to look at problems and solutions from wider perspectives, thereby, diversity in boards has been widely considered as an important contributor to improved decision – making. Against this backdrop, the paper empirically investigates the association between participation of women on board with the financial performance of corporate, using a sample of 16 listed companies in India. The study reflects positive and significant impact of women directors on financial performance in context to Indian listed companies. The finding from this work could be scientific basis for Indian company to build and form the most proper board for themselves and contributes to the existing literature through the empirical evidence with more insight into the effect of corporate governance, particularly female directors on firm outcomes from a typical developing country, India. Thus, it is suggested that companies should think about the femininity on board and in senior management to improve financial viability and performance to achieve sustainable growth.
Keywords: Corporate Governance, Financial Performance, Gender Diversity, Listed Companies, The Companies Act, Women Director