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Rock Street, San Francisco

This
research was conducted through quantitative analysis and the examining of
secondary data found through thorough research. The main objective of this
paper is to cover the relationship between gender diversity and the financial
performance of the firm. But in preference to focusing
on age, functional heritage, academic historical past and the period of an individual as a top level managerial
post  most researchers
have executed, this look
at focuses the ratio of demographic range based totally on gender  and its implications on firm performance (Marimuthu
& Kolandaisamy, 2009) The population that has been selected for
this research is 54 (sample size)
companies listed on Bursa Malaysia. The lists of companies are shown at
Appendix 1.

Once the population was successfully selected, analysis is
done based on information and data gathered by looking at the financial reports
of the companies as they are made available for the public. This method of
deriving data from the company’s financial report itself is compatible based on
previous research that have been done by (Zubaidah, Nurmala & Jusoff, 2009;
Malimuthu, 2009; Hashim & Devi, 2010)  In addition to that, reliable and resourceful
sources such as the Wall Street Journal were also used to gain more information.
As both boardroom diversity and financial performance is a broad topic, this
paper will specifically cover the relationship between Gender Diversity in the
boardroom and the effect of it on the Return on Asset (ROA – Net Income divide
Total Asset) an accounting based performance measurement (Julizaerma &
Sori, 2012)  This measurement instrument
is  generally used as financial
performance evaluation  as studied  by Erhardt, Webel and Shrader, (2003), Adams
and Ferreira, (2009) and Catalyst, (2008) There are number of ways that the
financial performance of a company can be measured and this includes, market
share, market capitalization and the total assets of the company  (Murray, 1989) The most common of measurements
would be to relate financial data such as ROA & ROE as a way to indicate
how well the company is doing. The ratio of gender diversity in the board of
director have been used as the independent variables in this studies where the
number of female directors divided by total member of board of directors in the
organization. But for this research I will be using only one of the measurement
instruments which is Return of Asset as the dependent variables similarly to the
previous study that have been done by Julizaerma & Sori in the year of 2012.
The data that has been collected is considered to be secondary data. Secondary data analysis is defined as
answering a new research question by using preexisting data (Schutt, 2015).
This is very useful for researchers as the data can be conveniently found as
social studies or surveys done by resourceful and relevant organizations and
bodies. These data’s may have been collected by previous researches for
different reasons but can be applied to other research questions as well. Not only
can researchers save cost and time, but they ensure that the information
collected are reliable. Based on (Hox,Boeije 2005), for social research
questions, it is acceptable to use data collected from other researchers or
other parties. The research was done by looking at the Return on Asset for the
companies for the year 2013 & 2016 and finding the difference. By doing so,
we are allowed to look at the growth of the Return On Assets.

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