Board Gender Diversity and Corporate Risk-Taking Behaviour in Nigeria

This study examines the relationship between board gender diversity (BGD) and corporate risk-taking behaviour among listed firms on the Nigerian Exchange Group (NGX) over the period 2011 to 2025. Drawing on agency theory, resource dependence theory, and behavioural finance perspectives, the study hypothesises that boards with greater female representation are associated with lower levels of corporate risk-taking, proxied by the rolling standard deviation of return on assets (ROA). Using an unbalanced panel dataset of 148 listed firms, yielding 2,072 firm-year observations, the study employs pooled ordinary least squares (OLS), fixed effects, random effects, and system generalised method of moments (GMM) estimations to address endogeneity and unobserved heterogeneity concerns. Findings consistently demonstrate that board gender diversity exerts a significant negative influence on corporate risk-taking, even after controlling for firm size, profitability, leverage, auditor quality (Big 4 dummy), board independence, industry effects, and time effects. These results are robust to multiple model specifications and post-estimation diagnostic tests. The findings contribute to the nascent but growing literature on gender diversity and corporate governance in Sub-Saharan African emerging markets, offering important policy implications for the Securities and Exchange Commission of Nigeria, the Financial Reporting Council of Nigeria, and corporate boards seeking to optimise risk governance. The study recommends deliberate gender inclusion policies and regulatory incentives to accelerate female board representation as a corporate risk management mechanism in Nigeria.