Gender Diversity and Decision-Making in Firms: Quantile Regression Approach for Indian Companies

Abstract

This study investigates the influence of gender diversity on corporate decision-making in the context of Indian non-financial firms. It examines how the presence of women on boards affects capital structure decisions—measured through the debt-to-equity ratio—and sustainability decisions—measured through corporate social responsibility (CSR) expenditures. Using cross-sectional data from 648 companies listed on the National Stock Exchange of India (NSE), the study employs both Ordinary Least Squares (OLS) and quantile regression techniques. The results indicate that a low representation of women on boards exerts minimal influence on strategic decisions, suggesting tokenism. However, a higher representation is significantly associated with lower financial leverage in the third quartile and increased CSR spending in the first quartile. These findings lend empirical support to the critical mass theory, which posits that a certain threshold of minority representation is necessary for meaningful influence. The study contributes to the growing literature on gender diversity and its impact on corporate governance in several ways. Firstly, it offers empirical insights into how gender diversity shapes financial and sustainability-related decisions in Indian corporate governance. Secondly, it is one of the primary studies to evaluate the impact of women leadership on corporate decision making in the Indian context.