Introduction
Due to its multi-dimensionality and cross-disciplinary definitions, the subject of corporate
governance has remained a topic of intense scholarly discussion. Corporate governance is
described as the protection of shareholders' interests by economists and legal scholars (Tirole,
2001). According to Hill & Jones (2001), from a managerial standpoint, corporate governance
refers to the measures used to make sure that managers' decisions are in line with the interests
of its primary constituent shareholders. According to these definitions, corporate governance
often refers to the procedure that decides the organization's goals and priorities, as well as its
mission and audience. As a result, corporate governance's fundamental structure places
emphasis on both the allocation of power among its numerous stakeholders and the effectiveness
of the organisation as a whole (Johnson and Scholes, 1997). Despite these variances, there seems
to be a consensus among experts about the three fundamental elements of corporate governance
(Mazudmer, 2013).The philosophy of corporate governance, which serves as the foundation for
the purpose for which the corporation is controlled, is described as the first element. The second
element consists of the functions and connections between a company's management, board,
shareholders, and other stakeholders. Regulation and market processes specific to the firm's
domicile make up the third and final component.
The coexistence of men and women of diverse nationalities, ethnicities, faiths, and ages on the
board of directors, also known as board diversity, is a hotly debated topic in today's business
world. The inclusion of women on the board of directors is referred to as gender diversity in the
boardroom and is a crucial component of board diversity. In 2021, the proportion of women in
senior management roles globally grew to 31%, the highest number ever recorded(Catalyst,
2021). Ninety percent of companies worldwide have at least one woman in a senior management
role as of 2021(Catalyst, 2021). Also the percentage of women in the senior management are
28% Asia Pacific, 38% in Southeast Asia, 39% in Africa, 36% in Latin America, 34% in European
Union, 33% in North America (Catalyst, 2021). In a developing nation like Bangladesh, where
women are significantly behind their male counterparts in the competitive board directorship
market, their condition defies description.
Through a review of the literature, our goal is to ascertain the status of gender diversity in
corporate governance in Bangladesh. In order to determine whether gender diversity is a
significant factor in corporate governance in Bangladesh, we shall categorize the literature into 4
main indicators of corporate governance. The topics covered by these 4 categories include gender
diversity and corporate governance, gender diversity and CSR disclosures, gender diversity and
corporate performance, and gender diversity and other financial indicators. The first category will
reveal how many women are represented on the board. The second category will reveal whether
or not gender diversity has an impact on CSR activity. We can examine how gender diversity
affects performance in the third category. We will learn whether gender diversity affects other
financial indicators, such as risk, earnings management, credit/loan, in the fourth category.
References
Tirole, J. (2001). Corporate Governance. Econometrica, 69(1), 1-35.
Hill, C., and Jones, G. (2001). Corporate Governance Theory. Houghton Mifflin Co. 5th.
Johnson, G., and Scholes, K. (1997). Exploring corporate strategy. Journal of Banking and
Finance, 22, 371-403.
Mazudmer, M. M. M. (2013). Corporate governance practices in Japan: Post-crisis reforms,
successive changes and future trends. International Journal Of Business, Management And
Social Sciences, 4(1), 1-11.
Catalyst (2021), “Women in management(Quick take), March 01, 2022” at
https://www.catalyst.org/research/women-in-management/