Asian Basic and Applied Research Journal

Over the years, renewed interests have emerged on the effects of women representation in management and corporate boards. Beyond ethical and social considerations, female representation is perceived to lead to a wider pool of human capital which have significant implications for the competition and performance of firms. Some studies have documented that boards that are gender diverse have increased corporate oversight and boardroom involvement, hence improved corporate performance. The current study sought to critically review literature on gender diversity and corporate performance in the banking sector. Theoretical underpinnings from stakeholder theory and human capital theory were explored in view of gender diversity and corporate performance. The study was based on a literature review methodology where methods applied and findings provided by previous researches with respect to the subject matter were documented. The study concluded that board gender diversity contributes to corporate performance in the banking sector. As such, a more varied board especially in terms of gender composition brings about good understanding of the industry and in turn enhances creativity, innovativeness and improved decision-making process. The implication of this is that board gender diversity should be embraced by banking institutions so as to promote diversity as well as inclusivity which will in turn enhance corporate performance.