01 Pages : 1-12
http://dx.doi.org/10.31703/gmsr.2025(X-IV).01 10.31703/gmsr.2025(X-IV).01 Published : Dec 2025Role of Gender Diversity in Explaining Financial Distress: A Dynamic Panel Data Approach
The purpose of the paper is to examine how board gender diversity can be used to explain financial distress over the span of 9 years, from 2013 to 2021, using a sample of 58 non-financial companies listed publicly on the Pakistani equity market. The study employs the dynamic generalized method of moment estimator, using the Altman Z-score model as a proxy for financial distress, where a higher Z-score indicates lower distress. Findings reveal that gender diversity on boards improves board performance and protects firms from financial instability and bankruptcy. Female directors, both independent and insider, play a crucial role in reducing financial distress, and their effect strengthens with greater board independence. This research is the first study to analyze the association between gender diversity in boards and the probability of facing financial distress from the perspective of the emerging economy (Pakistan).
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Financial Distress, Gender Diversity, Board characteristics
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(1) Fahim Ullah Khan
M.Phil Scholar, Department of Business Studies, Pakistan Institute of Development Economics, Islamabad, Pakistan.
(2) Luqman Khan
Ph.D Scholar, Department of Management Sciences, Islamia College Peshawar, K, Pakistan.
Cite this article
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APA : Khan, F. U., & Khan, L. (2025). Role of Gender Diversity in Explaining Financial Distress: A Dynamic Panel Data Approach. Global Management Sciences Review, X(IV), 1-12. https://doi.org/10.31703/gmsr.2025(X-IV).01
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CHICAGO : Khan, Fahim Ullah, and Luqman Khan. 2025. "Role of Gender Diversity in Explaining Financial Distress: A Dynamic Panel Data Approach." Global Management Sciences Review, X (IV): 1-12 doi: 10.31703/gmsr.2025(X-IV).01
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HARVARD : KHAN, F. U. & KHAN, L. 2025. Role of Gender Diversity in Explaining Financial Distress: A Dynamic Panel Data Approach. Global Management Sciences Review, X, 1-12.
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MHRA : Khan, Fahim Ullah, and Luqman Khan. 2025. "Role of Gender Diversity in Explaining Financial Distress: A Dynamic Panel Data Approach." Global Management Sciences Review, X: 1-12
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MLA : Khan, Fahim Ullah, and Luqman Khan. "Role of Gender Diversity in Explaining Financial Distress: A Dynamic Panel Data Approach." Global Management Sciences Review, X.IV (2025): 1-12 Print.
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OXFORD : Khan, Fahim Ullah and Khan, Luqman (2025), "Role of Gender Diversity in Explaining Financial Distress: A Dynamic Panel Data Approach", Global Management Sciences Review, X (IV), 1-12
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TURABIAN : Khan, Fahim Ullah, and Luqman Khan. "Role of Gender Diversity in Explaining Financial Distress: A Dynamic Panel Data Approach." Global Management Sciences Review X, no. IV (2025): 1-12. https://doi.org/10.31703/gmsr.2025(X-IV).01