II assignment

Gender Diversity and Job Performance in the Banking Industry

DIS-9902A Assignment # 31

Elton NormanStudent Name

Dr. Riyad AbubakerProfessor

726 April May 2020

Table of Contents Introduction 3 Patterns of gender diversity 6 Senior management 7 Importance of diverse board 8 Theoretical background 8 Agency Theory 9 Resource Dependence Theory 12 Human Capital Theory 13 Gender Differences Theory 15 Group Effectiveness Theory 16 Tokenism and Critical Mass Theory 17 Inconsistencies in literature 19 Themes from the literature 21 Importance of Gender diversity in organization 21 Female directors and the performance of bank 24 Leadership Characteristics 24 Women in top leadership 26 Misconduct risk 29 Integration 29 Economic value 31 Better governance 32 Barriers for gender diversity 32 Gender norms 32 Female mentors 35 Network 36 Competitive Eenvironment 37 Cultural Transformation 38 Human Development from Adolescent 39 Summary 40 References 41

The topic of Oorganizational and gender diversity gender diversity in the banking industry banking industry has gained increasing importanceprominence in many countries. Although the number of qualified female graduates and the number of working women in the banking industry has increased increased in the past decades, but there are few women represented at in the top managerial positions (Campbell & Minguez-Vera, 2015). Some nations in the European Union decided to use political influence to trigger a change in this representation. For example, statutory gender quotas for boards of management were introduced in Italy, Norway, Germany, and Spain (Post & Byron, 2016). These governmental initiatives were guided by two sets of arguments: the business case for gender diversity and the moral case for gender diversity. Comment by S. Strother: the banking industry Comment by S. Strother: increased Why not use the grammar checker? Comment by S. Strother: Comment by S. Strother: no direct article for "past decades"

The increase in women in management roles and the workforce has transformed the conditions of women employment in contradictory and complex ways. While women are entering managerial and professional jobs in banks, there has been an increase in the number of women joining part-time and low-paid jobs, vertical and horizontal segregation is evident (Fan, Jiang, Zhang, & Zhou, 2019). The theoretical explanation of these trends of women's employment has focused on gender inequality to a detailed analysis of everyday relationships in the banking industry. There is a need to explore gender discrimination in white-collar professions, particularly in the banking industry. This concern helps to raise questions on the relevance of existing research in understanding the change women experience in work and employment. The goal of this chapter is to review the existing literature on women's employment in managerial positions, particularly in the banking industry, discuss the limitations of previous research, and highlight and discuss the gap in the literature in current and past studies. Comment by S. Strother: maybe add numbers, since your phrase "particularly the banking industry" is actually not part of the list but looks confusing to the reader

The moral arguments favoring gender diversity focuses on compliance with set regulatory requirements, fairness, and equal opportunities for everyone. This understanding of gender diversity is “the discrimination-and-fairness paradigm.” The core elements of the moral argument are gender-blindness and equality (Kundu & Mor, 2018). The supporters of equality argue that women represent half of mankind that women represent half of humankin, d, which translates to half of its capabilities and intelligence. Therefore, wWomen should be equally represented in management roles. The supporters of conformism are against the idea of gender-specific differences, and they tend to promote equality of the two sexes. Supporters of the business case for gender inclusion in management positions argue that diversity is not entirely about fairness, but it makes business sense and will be further explained in this chapter (Owen & Temesvary, 2019). Comment by S. Strother: focus Comment by S. Strother: you need a verb Comment by S. Strother: how does it make business sense? if you'll explain this below, maybe tell the reader you will explain this below

The economic point of the argument is that gender inclusion focuses more on the difference between men and women and the resulting advantages which resulting advantages includeing (a) A wider talent pool, (b) Different perspectives, (c) Enhanced collaboration, (d) Improved staff retention, (e) Improved recruitment and reputation and (f) Greater profitability. The line of reasoning for a business case is that an organization’s workforce should reflect the societal diversity of its clients to have access to every segment and gain legitimacy with the customers. The number of ladies in senior positions is indeed associated with the a reputational effect, which is pronounced for the banking banking industry, considering its close interaction with the final clients. . Comment by S. Strother: maybe give an example of “advantages” Comment by S. Strother: sometimes these lists have commas Comment by S. Strother: an Comment by S. Strother: If you say "the reputational effect" it seems you are referencing some literature? Maybe switch to "a reputational effect"

The research studies on gender diversity in the financial sector by Steffensmeiera, Schwartzb, & Rochea (2015); Fan et al. (2019) is a way ofhas helped to explore understanding how diversity unites the two earlier ways byhelps to promote ing equal opportunities and recognizing recognize values in cultural differences. A gap in the literature needs to be addressed on the merits benefits of institutionalizing a diverse workforce to improve business practices, improve processes and working strategies strategies. Although improving internal processes and strategies can impact firm job performance indirectly, the real benefits of gender inclusion in the banking industry should be measurable to achieve the commitment of leadership. The business case of diversity should be linked to the main objectives of the company. The business case is relevant for supporting the increase in female representation in senior management and on the banking board of directors (Luanglath, Ali, & Mohannak, 2019). The business case forA research study exploring how to improveing gender inclusion in top banking management roles should provide positive effects on bank performance and shareholder wealth.

The research question of this literature review is: Does recent research give evidence for the benefits of gender diversity in the banking industry? One literature review in particular deals with the effects of gender diversity in workplace (Shore, Cleveland & Sanchez, 2018).Several literature reviews deal with the effects of gender diversity in the workplace. The research shows that the relationship between performance and gender diversity is not direct but context-sensitive. This study involves an empirical investigation of the demographic issues of gender diversity and the effects on the job performance of a bank. The literature review includes empirical evidence and theoretical constructs to evaluate the effects of gender diversity of an organization. Comment by S. Strother: This is unacceptable. Your chapter 1 says you will study job performance. Now you state you will change to bank performance.

Research evidence by Ostry, Loungani and Berg (2019) shows that financial institutions embrace and promote culture and gender diversity through attraction, recruitment, and retention of workers from diverse interests, backgrounds, and cultures. A diverse team strengthens banks by bringing experience while allowing customers of different genders and races to feel accommodated while transacting with the banks. Businesses should help to better the lives of workers by giving providing career development opportunities through mentoring and training. Such career development opportunities will also help to prepare workers for better career opportunities and highly competitive salaries. Gender diversity is reflective of the bank values and defines customers, which the financial institution serves (Christiansen, Lin, Pereira, Topalova, & Turk, 2016)—providing opportunities for diverse communities to benefit employees, communities, and customers.

Theorists have tried tries to explain the factors that lead to the financial crisis in a bank, and there are different explanations for the shift of banking industries toward excessive venture in risky markets. One underexplored argument is that homogeneity of decision-making in financial institutions reinforces cognitive biases. Despite this, women are continually making progress toward assuming senior leadership ranks. In this chapter, it is argued that women are underrepresented in board positions and senior leadership in the banking industry. Moreover, the chapter contends that the increased gender-imbalance in the leadership ranks of banks may undermine risk management oversight (Bart & McQueen, 2017). Hillary Clinton was selected to serve as a candidate for the presidency of the United States in 2016. Women are currently getting positions as head of state and “CEO (Chief Executive Officers) at Fortune 500 companies” (Lorenzo & Reeves, 2018).

Studies by Bart and McQueen (2017); Christiansen, Lin, Pereira, Topalova and Turk (2016); Fan et al. (2019) posit that introducing gender diversity among the decision-making authorities such as senior executives lead to a superior outcome. Study by shows that lack of gender diversity cause over-heating of banking institutions and signal that gender diversity has exuberance that fuel business bubble.. Other studies suggest that a lack of gender diversity cause over-heating of banking institutions and signal that gender diversity has an exuberance that fuel business bubble. The explanations for the increasing trend of women in senior positions point to two possible phenomena: globalization and the new economy. The existing study on new economy shows that changes in nature of work contribute to women employment. Banks under the new economy experiment with new types of employment, changing its temporal, spatial, and contractual dimensions.The current study on the new economy shows that changes in the nature of work contribute to women's employment. Banks, under the new economy, experiment with new types of employment, changing its temporal, spatial, and contractual dimensions. Moreover, new technology has contributed to increased opportunities for women because they do not need physical strength. Comment by S. Strother: What study is this? Also "new economy" is a specific phrase in the literature. Please review this and decide if this is in fact what you are refering to.

Law gives the board of directors of a company the power to decision making. The Board of Directors (BOD) manages the internal affairs of business by monitoring the performance, assisting in decision making, and giving advice to the executive officers of the bank. SAlso, state courts give the BOD substantial deference in the execution of these duties. The law directs the owners of the bank to elect the board members and empower them to make decisions on behalf of the owners. For example, according to the "New York General Business Corporation Law," business should be managed under the supervision and control of BOD (Jia, 2017). This further means that the board monitor and ensure bank comply with both the federal and state laws. The board may elect to form board committees that have selected groups of members with expertise to help the designated committee. The board committee appointments, in most cases, are highly competitive. Comment by S. Strother: did you already spell out this acronym?

The board committee has the responsibility of risk management and oversight of the board in terms of accuracy of risk controls, internal controls, and risk management policies. The committee may develop some practices or form mandatory policies that direct how the executives address specific issues. Moreover, theThe BOD employs the service of experts to advise on technical matters, but this is subject to the board approval (Kundu & Mor, 2018). In some cases, the senior manager conducts internal audits, and in a different case, the manager hires external auditors to evaluate the financial records. The BOD consults with business partners to develop the process of selling shares and create interest in the public. Finally, theThe BOD appoints senior management officers such as “Chief Financial Officer (CFO)" and CEO. American law does not define the credentials for the executive or the directors (Kundu & Mor, 2018). The banks typically appoint directors who can attract investors. The board members look for managers with reputable track records, relevant professional licenses, and leadership skills. Some executive positions require a great understanding of technical issues.

Examining the structure of BOD creates the impression that the process of decision making is deeply imbued with expertise, and it depends on the existing culture. The bank management is one plagued with self-interests and greedy (Kılıç & Kuzey, 2017). To solve the weakness in the decision making, some researchers CITATION Ahe17 \l 1033 \m Chr161 (Ahern & Dittmar, 2017; Christiansen, Lin, Pereira, Topalova, & Turk, 2016) (Ahern & Dittmar, 2017; Christiansen et al. (2016) believe that businesses should focus on greater diversity to in the senior management. The question of the benefits of board diversity has increased in America and other nations (Fawcett, 2019). The common argument is that gender diversity in senior management enhances better governance and improves the overall financial performance. Many supporters CITATION Mat15 \l 1033 \m Chr161(Matsa & Miller, 2015; Christiansen, Lin, Pereira, Topalova, & Turk, 2016)(Matsa & Miller, 2015; Christiansen et al. (2016) of the positioning of women in senior management posit that the diversity improves leadership quality and maximize wealth among the shareholders. This section of the chapter explores the advantages of these elements in the business case for gender balance and job performance. Comment by S. Strother: in? Comment by S. Strother: what about job performance?

Some prevalent theories which can be used in this research are agency theory, human capital theory, the resource dependency theory, and gender differences theory. Kanter's critical mass theory gives an insight into the implication of categorization to study the effects of groupings of female managers on banks’ survival. According to Kılıç and Kuzey (2017), gender-diverse boards have improved bank linkage with the external environment. The board influences the bank by changing and improving interpersonal interaction.

Diversity improves the innovative and creative decision-making and leads business to better performance. The diversity brings the benefits of mixed skill sets. Banks lose the skills of minority gender, and this affects the ability to achieve a competitive advantage. The mix of the skills is referred to as intellectual capital theory (Owen & Temesvary, 2019). Gender-sensitive boards improve the flow of information from the managers and produce unique information in the decision-making process. This means that gender-inclusion is more likely to attract diverse talents from the human capital theory. The resource dependence theory supports the idea that the presence of women in senior roles improves the company's financial performance by using internal and external resources.

The underlying concept of agency theory is the conflict of interest between directors’ team and shareholders, where the managers are concerned about their interest (Bower & Paine, 2017). Strong governance is an essential tool in the organizational context to reduce the problems and challenges brought by an agency that arise because of the separation of management control and ownership of the bank. The agency theory is a consistent theoretical approach and shows the importance of gender inclusion in an organization. The agency theory argues that gender-balanced BOD enhances the functions of the management team. The diversity of BOD reduces cases of opportunistic actions of the management team by giving out the correct information. The control and monitoring of the functions of the board on the management team are essential in reducing principal-agent conflicts.

Oyotode-Adebile and& Raja (2019) support that gender-balanced BOD is effective in strategic decision making and setting the bank's policies. Rogish, Sandler and, & Shemluck (2019) also believe that banks with a high proportion of female CEOs present lower agency costs, more so in areas with less competitive markets. Based on this hypothesis, “the captured board," it is arguable that banks increase their market dominance as a result of cutting down the agency losses. The independence issues of gender diversity in the board reduce the agency costs by working diligently compared to directors that are closer to the management team. In the same light, gender diversity improves the independence of the board of directors because the female members come up with different experiences and perspectives that encourage them to question some practices and not conform to conventional ways of doing things (Oyotode-Adebile & Raja, 2019). This means that boards of directors who have high gender balance are more independent compared to boards that have lower female members. The female managers independent, and they have a different background of men network. Gender balances reduce the effects of the old-boys syndrome, hence the diversity creates better monitoring of the management team Comment by S. Strother: no ampersands

In addition to controlling and monitoring the function of the management team, a functional board is responsible for disseminating information and integrating to ensure that correct information is given to the relevant organization in a timely way. Studies by Ahern & Dittmar (2017); Kılıç & Kuzey (2017) show that there is a relationship between company report and a sound control system. A board that is controlled by the management has fraudulent reporting. Misleading and inadequate information to the bank shareholders give rise to conflicts and adverse effects on the performance. According to Oyotode-Adebile & Raja (2019); Rogish, Sandler, & Shemluck (2019); Jia (2017), gender-balanced management is useful in directing the information and improve the public disclosures on the business operations. Efficient boards are in a position to solve conflicting actions of the team of management and avert the agency conflicts by bringing down issues of information asymmetry; this increases the operation of the bank. Moreover, gender diversity in senior positions helps the company monitoring management activities more effectively (Sabatier, 2015). Unfortunately, in many cases, the women leaders are marginalized by the male leaders, and their effort is readily regarded in decision-making. Consequently, the board gender inclusion and balance may not improve the board functionality if the female directors are marginalized and subjected to tokenism.

Gender diversity in high-ranking positions has positive effects on the bank's economic position. However, genderGender diversity can be disadvantageous to financial performance if it results in over-monitoring (L.Owena & JuditTemesvary, 2018; Nguyen, Locke, & Reddy, 2015). The improvement of bank performance depends on the quality of the governance in control and monitoring the operations. In a well-governed bank, over-monitoring of workers and using excess control from the gender-balanced boards lead to a decrease in the business financial performance. Strong business control can cause failure in communication among the managers and the boards, and they can, in effect, lower the shareholder value (Sabatier, 2015). It is also argued that gender-diverse management may result in internal conflicts because of the differences during a meeting and varying opinions (Adams & Funk, 2015). According to a study by CITATION Hsu16 \l 1033 \m Gro18 (Hsu, Kuo, & Chang, 2016; Groening, 2018) Hsu, Kuo, & Chang, (2016); Groening, (2018), there is a negative link between gender-inclusion in high-ranking management and bank value, and this means more effort and time are used to resolve fights in the management team which has gender balance. Comment by S. Strother: ((((

Though some pieces of evidence show that gender inclusion in banks improves monitoring roles, the agency theory is not clear on the prediction of direction or explanation of the correlation between inclusion and improvement in financial performance. Although Hsu, Kuo and Chang (2016) agree that the principal-agent concept explains the monitoring responsibility and the freedom of board function, the agency theory is not valid in certain incidents. Using agency theory as a ground for studying the link between gender inclusion and bank financial position results in a conflicting conclusion Comment by S. Strother: why the parantheses???

Dominance use of the above agency theory has resulted in conflicting positions on the issue of inclusion concerning business performance. The resource dependence theory is more convincing in the business case for gender diversity. Pfeffer developed the theory, and he indicated that business general runs in an open system in which their survival or success is dependent on the resources and the external environment (Ahern & Dittmar, 2017). The supports of resource dependence theory further argue that the board of directors (BOD) gives an important link between business and its resources and the dependencies on the environment. According to Pfeffer, the BOD gives four important resources to any business. These resources include a channel of communication, legitimize the business, and establish a business network with other institutions. The directors are insiders, support specialists, business experts, and influential community role. The insiders can be defined as retired or current workers in a bank or any other business, while the business experts are the officers and executives of the company. The support specialist is the professionals in the banking industry, and the community influential are leaders in academia or government department (Luanglath, Ali, & Mohannak, 2018). As the directors give access to a different business resource for the bank, the gender-balanced boards tend to expand the profile of the BOD and create a link with important external and internal resources. Gender diversity management improves the relationship between the banks, their competitors, and customers.

The function of the management is to give the linkage between the external environment and the business to create economic benefits. This implies that the board should attain mixed skillset expertise, knowledge, and experience in different areas to create a competitive advantage for the bank. Considering the merits of gender diversity in senior management, several studies have evolved from the resource dependence theory, and it can be concluded that heterogeneous board improves the value of the business and it creates a competitive advantage within the management. According to CITATION All16 \l 1033 \m Bar172 (Allemand & Barbe, 2016; Bart & McQueen, 2017) Allemand & Barbe (2016); Bart & McQueen (2017), heterogeneity of management cause improved decision-making because of more great innovation and knowledge base. This improves the competitive advantage for the bank. It is also argued that cognitive conflicts in a gender-balanced group create innovative solutions. The high-quality decision-making processes influence the management and business positively, and these have positive effects on financial performance. The four main resources in gender-inclusive management include different perspectives, knowledge, skills, and experience. All these resources are beneficial to the banking industry. These unique and critical resources of female managers and directors can be different from their male counterparts more so in a diverse environment, and this difference is important in handing business uncertainty. The addition of business resources from female managers is an open opportunity for banks to enter new markets easily.

According to the theory by Rosenstock, Strecher and Becker (1988),Becker, enhanced productive and cognitive abilities of each employee's cumulative experience and education benefits the bank in terms of individual intellectual property. The BOD includes people who have a broad range of skills and experience. The productive and cognitive abilities of the directors allow them to interpret and seek information that influences the effectiveness of the board decision-making and influences the overall bank performance. In some studies, recent statistics in America and Europe show that ladies are smarter in college, and the employment rates of young females are on the rise. According to (Luanglath, Ali and, & Mohannak (, 2019), concerning gender diversity, the female senior managers in the big banks are more likely to have a master's degree with international experience. These data show that women have achieved much in the academic world, and they have the relevant skills as their male counterparts, and they can contribute to the workforce. Groening (2018) support the idea that educational achievement and cognitive diversity has a positive effect on bank performance. Female managers with high educational achievement provide a diverse perspective in bank discussions; they ask different questions and participate in workforce performance. Comment by S. Strother: year? Comment by S. Strother: Good job describing this study. Comment by S. Strother: supports

The active collaboration in the gender-balanced board gives various perspectives in dealing and understanding with complex banking environment and solving specific problems. This makes diverse management successful in decision-making. Despite academic qualifications, improvising the reasoning ability and levels of each person, the practical abilities of each manager differ based on values, experience, and skills. Proven experience and academic level of female members of the board is an extra-human capital; this is an asset to any bank. Different genders have different human capital. According to Delgado-Márquez, de Castro and Justo (2017), female members of the board who have little background in business management and the banking industry may not be an asset in high-level positions. Therefore, even though hHuman capital theory supports the idea that female CEO and board members add value to the bank and if the female lack appropriate experience and exposures, it limits the advancement of the board, and it may have an undesirable consequence of the bank performance (Delgado-Márquez, de Castro, & Justo, 2017). Another school of thought argues that the higher education qualification of female directors normally cause emotional conflicts in the decision-making process, and this again impact the operation of any business (Lorenzo & Reeves, 2018) negatively. Therefore, aAlthough gender-inclusion improves critical thinking, it may result in a less effective decision-making process and slow the process because of conflict of interest. The disagreement and conflicts cause annoyance and tension among senior management, and this ledleads to ineffective board processes. The costs of getting consensus and resolving management conflicts in any business are value destruction, and it outweighs the benefits.

This theory is based on the recognition that both males and females are different in their leadership and behavior. Some sStudies by Post and Byron (2016); Terjesen, Couto and Francisco, (2016) ascertain the headship role of men as argotic and ladies as communal characters. Men egosThe egos men have make them more self-confident, assertive, and aggressive, while female leader tends to be had common attributes such as democratic participation, speak tentatively, and less autocratic. Concerning gender diversity and inclusion in the banking sector, this theory implies that the employment of women in senior positions with different experiences results in different working principles. Intrinsic characters of female managers add value to the board; they give different working perspectives. Gender balanced board and management team is more effective in solving different natured problems. Research work by Nielsen and Madsen (2019); Fan et al. (2019) shows that a gender-balanced management team participates in deep conversation compared to a board of management, which is male-dominated. A research study by Luanglath, Ali, & and Mohannak (2019) shows that there is “no difference between females and males in terms of management” although in some situations they have skills and behave which are diametrically opposite. Comment by S. Strother: grammar Comment by S. Strother: You don't need these parantheses. This automatic citation system is hurting you.

In some research on risk-taking, it is generally agreed that females tend to shy away from risk ventures, unlike men. A study by Campbell & Minguez-Vera (2015) found that ladies are less risk-takers compared to males, and they are less likely to venture into risky experiences. Females make conservative choices in business and investment. Females who are involved in male disciplines such as engineering, economics, and finance are different from the general population. There is a higher confidence level of females who have in certain fields, indicating that females exposed to similar experience and education are confident like males. In this context, female managers in banking sectors can be adapt to the male-dominated world. This is demonstrated in research by Steffensmeiera, Schwartzb and Rochea (2015); Rogish, Sandler and Shemluck (2019)research, suggesting once female managers break through the glass ceiling in banking, they become more risk-taking compared to male managers. Gender difference is minimal at senior management, females with higher experience in banking have values and leadership styles which are similar to male colleagues, and this is one basis of rejecting the feminine stereotype

According to this theory, boards which have certain composition are more successful when compared to boards with different nature of the composition. Similarly, the composition of senior management affects bank effectiveness. Studies by Oyotode-Adebile and Raja (2019); Low, Roberts and Whiting (2015) in the gender diversity suggest that a board constituting of the male and female are more effective compared to a board made on one gender in terms of making adjustments and resolving problems. This means that the diversity in management in terms of human capital resources and personality improves decision-making, increase creativity, and network boundary. The positive effects of gender-inclusion on the management can be disadvantageous if the management takes longer to make decisions and comes to consensus. According to a study by Sabatier (2015), a gender-balanced board has a negative effect on a bank because of board conflict that needs more effort and time in getting to agree on the strategic decision. This slows actions and responsiveness required to respond to the business rivals in the banking industry.

Kanter introduced this theory, and it supports the critical mass theory. According to Kanter, the opportunity for advancement is based on important relative social groups, and these groups are based on race and gender (Wylie, 2018). Kanter further indicated that masculine principles dominate many business entities. This means that gender is an implication of token, and female in this context are dysfunctional in the corporation. In this case, a token in board gender diversity means a single female manager or board member who is considered a representative of the female category. The representation of females on top is a token, and to some degree, it is a solo. The contribution of these female managers is limited because she does not have full participation in decision-making. In some organizations, the female director is appointed as a way to submit to the set legislative requirement on gender balance. Comment by S. Strother: Comment by S. Strother: year? Comment by S. Strother: a toke?

Relating the above in senior management of banks, the tokenism dysfunction of a business affects is values, practices, and norms and shape the representation of junior workers in the job practice. A case of tokenism is the fall of Enron Company in 1998; it had only one female director sitting in a BOD consisting of seventeen male directors. When there is a gender imbalance, the influence of the token lady manager on the board is minimal (Matsa & Miller, 2015; Owen & Temesvary, 2019). The image distortion that is made in single-gender management is inconsistent with public perception. It is argued that females in banks dominate in lower ranks, which normally have fewer opportunities. Based on the behavioral effects of opportunities and power, males in lower ranks and limited opportunities tend to act like females in the same position and ranks. The general belief is that female is identified as communal and possess the qualities of the leader.

This theory is based on classical analysis of absolute numbers in management and is emphasizes the importance of this relative number. The critical theory argues that gender should have significant representation in order to make its contribution heard and make a difference in decision-making. According to the critical mass theory, there are four categories of the composition of females and males in management. These groupings include uniform group or homogeneous group where the members of senior management share some characteristics that are male or female-only; a skewed group where the board has minority representation; a titled group there the minority has a relatively high balance and a balanced group where the minority gender is made up of about 40% of the total representation. In this case, the skewed group is a problematic composition because the female directors are token to the management, and it is prone to stereotype by the dominated male gender. The minority female manager in a male-dominated board cannot effectively express their position and influence the process of decision making in the said group. When the number of minorities in this skewed composition of senior management increase in relative proportion towards the titled group or the balance group, then there is a presence of a distinct group.

The representation of female in a balanced or even a titled group bring their perspective, knowledge, value, and skills to contribute to the group discussion and generally improve the effectiveness of the board process and formulation. Despite this, there is a concern about what makes an effective number of gender representation on the said board to make a difference in decision making. Generally, theThe presence of one lady is a token, and when the number increase, it becomes a voice. The increase in number means that the board decision-making is gender-conscious, and the female managers are not seen as outsiders. Based on the critical mass theory, studies by Bart and McQueen (2017); Nguyen, Locke and Reddy (2015) show that the critical mass of female members of senior management is best achieved when there are more than five directors on the boards. Dezsö & and Ross ( 2015) indicates that about thirty percent of the minority group in management make a difference. Fan et al. , Jiang, Zhang, & Zhou (2019) and Kundu & and Mor (2018) suggest that there is a "significant and positive relationship between the number of female directors and the innovation of board performance when there are more than three directors.” This means that there is a positive effect on the increase in the mass of female managers in the company's financial performance. The lower the number of female managers, the insignificant the impact on bank performance.

The gender-balanced has an undesirable effect on bank “return on equity (ROE)” before the critical representation of the female gender is reached. Once the representation passes the critical number, any further increase is linked with improved bank performance. From this critical mass theory, the management should have a significant number of female representations that are referred to as the critical mass of the female to have an impact on financial performance. Without the critical mass of minority representation, the female manager's contribution is reduced to become a token in management. The male-dominant group will marginalize the inputs of less represented and diminish the influence of diversity on boards on institution performance.

There is a positive relationship between diversity and the financial performance of a bank. However, this claim has not received conclusive support in research studies. Previous studies have mixed evidence between female presence in senior bank management and business performance. There are four reasons for the conflicting research findings. First, the research data are drawn from different cultures and countries with a different jurisdiction, and this prevents consistency in research findings (Allemand & Barbe, 2016; Chandani & Mahmood, 2018; Kundu & Mor, 2018). Based on the legal provisions in various countries, a corporate governance system allows a board to act as a supervisor and controller or roles. The impact of gender diversity in the bank depends on board governance. In a well-structured board, over-monitoring of workers is counterproductive, and it hinders the decision-making process. These findings vary based on regulatory requirements, the economic climate, and the governance structure.

The pieces of research examining bank governance and management are plagued with endogeneity issues. The link between financial performance and gender diversity is endogenous (Hsu, Kuo, & Chang, 2016). It is impractical to control the reverse causality between the variables. A relevant external variable should correlate with problematic explanatory variables, and it should be uncorrelated to error terms of the dependent variable. The endogeneity problem typically leads to unreliable findings if the subject under study is not well addressed. Comment by S. Strother: this is a good point

Third, the pieces of research use different measurements of diversity and bank performance using different timeframes, and this results in conflicting findings. The terms to measure gender diversity include the number of female directors and the presence of females on BOD. Performance measures are “return on assets, market capitalization, and return on equity” (Adams & Ferreira, 2015). A focus on these short-terms of performance does not capture the effects of gender diversity (Nguyen, Locke, & Reddy, 2015; Hsu, Kuo, & Chang, 2016). There is a need to have a long-term analysis of the impact of gender balance on the board of directors. For instance, research using cross-sectional data, focusing on a specific time, suggests gender balance in management is better compared to the homogenous board. Studies using panel data shows there is no implication of the presence of more female on the performance of the board. Using different statistical methods in the analysis result in inconclusive findings. Some literature on gender diversity applies fixed effect estimation, while others use the ordinary least square method. Depending on the statistical method used, the result varies, and they are not consistent throughout each method.

Two main functions of senior management relate to bank business and general operations. The senior managers are influential players in the bank, and they decide the strategic directions. The managers fulfill their supervisor role to the banking team, which includes monitoring the use of company resources and assets and response to business threats. Previous literature from Low, Roberts and Whiting (2015) and Sabatier (2015) on the senior management and gender diversity provides pieces of evidence that increase in gender inclusion may result to better the monitoring function. This study builds on the same notion and research on the relationship between gender diversity and its effects on the bank’s financial performance.

From an optimistic view, inclusion on gender in management promises various capabilities, beliefs, and attitudes (Kundu & Mor, 2018; Chandani & Mahmood, 2018). Inclusion further provides differing approaches and perspectives to the problems an openness to exchange of ideas, which in many cases leads to an increase in creativity and team performance. From a moral perspective, it is arguable that diversity in the workplace should be exercised to reflect the diversity of the workforce. Securing equal opportunities, rights, and responsibilities for current and prospective workers regardless of age and gender should be the desired objective. This position is applied to all areas of human resource management, right from the recruitment process, the allocation of duties to workers, the process of workers promotion, and the composition of the team to the highest levels. However, while the moral perspective favoring gender inclusion is reasonable and accepted, another perspective gives a different picture.

When analyzing the effects of gender diversity, the social-psychological perspective fosters a pessimistic position. The social-psychological perspective is based on three theoretical approaches, and these are similarity-attraction, information processing, and self-and social categorization perspective. According to the information processing school of thought, a group benefit from diversity as each member of the said group gain access to the wide range of skills, information, and knowledge. The level of information tends to increase the overall group performance. According to the similarity-attraction perspective, which is a part of the interpersonal attraction theory, people are, in most cases, attracted to similarity and not diversity.

This position is emphasized by the social identity theory, which argues that people intuitively seek for grouping themselves into like groups. Criteria such as gender and age serve as determinants for the similarity and distinction of the social level. This position is supported by in-group bias; there is a tendency of people to favor people in the same group over out-group. These types of preferences are dominant in social interaction, allocation of resources, and assessment of people. This means that people will have more cohesion and robust social inclusion and integration in a homogenous setting; this is a weighty argument against gender diversity.

The economic perspective provides different arguments that are against and for gender diversity. Proponents of gender diversity suggest a positive and direct impact on firm job value and general bank performance. According to Delgado-Márquez, de Castro and Justo (2017), there is a link between managing gender diversity and the improvement of competitive bank advantage. It is argued that gender diversity management leads to a competitive advantage in resource acquisition, marketing success, organizational flexibility, innovativeness, and problem-solving.

The authors argue that the fair share of women in the banking industry and more so in the managerial positions increases in the labor market because of demographic changes. As companies are in increased competition for excellent workers from these underrepresented groups, the bank's reputation regarding its operating efforts to manage diversity gains insignificance. Persons from different gender hold different beliefs, perspectives, and attitudes. They are also different in terms of their cognitive functioning. Gender diversity should have a desirable effect on the team's overall creativity and innovation, as well as decision making and problem-solving CITATION Fan19 \l 1033 (Fan, Jiang, Zhang, & Zhou, 2019) (Fan et al. (2019). This idea is supported by, who arguments that argue that a heterogeneous group is more successful compared to a homogenous groups in solving business problems. The system flexibility is improved by managing the gender diversity for two main reasons: the firms' policies and processes are dissolved, and the bank is open to change. Second, flexible cognitive structures are assigned to women. Comment by S. Strother: check grammar Comment by S. Strother: you don't need a direct article for the noun "gender diversity"

A business is the clients and the customers it serves. This means that gender diversity is important for the success of the business. Some banks have realized that gender inclusion improves the creativity in the middle and lower managerial levels and strengthens the external relationship with consumers and customers. Various ideas and viewpoints should be advantageous for the upper class of management. The reason why inclusion should a top business priority and concern is that; alterative business ideas and initiative promise clear returns and concrete results in the short-term. Banks should, therefore, create a sound business case for gender diversity to get support from the top. The inclusion results to lower turnover cost, avoidance of lawsuits on sexual discrimination, improvement in retaining and attracting excellent workers in the diverse background, and creating greater creativity. Despite this, the diversity initiative should be handled like any other business process to achieve leadership commitment. Comment by S. Strother: this is a non-sequitor

Banks that operate under the principle of corporate governance tend to be more powerful and profitable for their shareholders. The selection of the board of directors (BOD) is an important part as these people are centrally involved in decision making and policy formulation. Further research suggests that a higher ratio of female in board increase profitability and productivity, thus there is positive performance effects of management gender diversity. The induction of women directors is mandatory in some countries like Spain and Norway, they have made it a law to have at 40% women directors. This is proof that women are different from men in personality, educational background, experience, and it is prudent to consider these traits in decision making.

ThereThere is evidence that a greater number of women have high development evaluation and program, and this increase earning values of an organization. According to the resource dependency theory, women have diversified networks through which they understand and capture certain customers and markets compared to their male counterparts. The induction of women onboard brings improved performance on banks in control and monitoring functions.

The main research question is if there is a benefit in employing more women in banks and create diverse gender institution. This means it is essential to understand the leadership traits between women and men. According to, women are more accommodative compared to men, and this influence group performance and goal attainment. Women form coalitions in competitive activities, unlike men who exploit coalitions for personal benefits. It is also argued that women have nurturing behaviors, and they pursue a collaborative leadership style compared to men who are more controlling and exercise power. Women managers are considered to be accommodative and passive, while men are seen to be active, authoritarian, and aggressive (Lorenzo & Reeves, 2018; Post & Byron, 2016). There is a dilemma for female managers who are high achievers, yet they fear being considered less feminine as men more often hold their position. When women are the minority in the workplace, they are more visible, and this increased pressure on women's leadership responsibilities as they always under observation.

It is challenging to determine traits of specific gender compared to what traits are influenced by cultural and social pressures that girls are to behave in a certain way. Some research work shows that women and men act based on the social expectations that are set on them. One biological factor, according to Adams and Funk (2015), is that women tend to be prone to depression and anxiety compared to men. On leadership style, it is argued that there is no difference between female and men style of leadership. Women tend to have a relationship-oriented approach compared to men who demonstrated task orientation. Men are motivated to master their roles, they are dominant and forceful, and they tend to be inclined to use initiating structure leadership (Delgado-Márquez, de Castro, & Justo, 2017; Groening, 2018). Women are focused on people, and this makes them understand and kind, this is an inclination to consider leadership. Women are democratic and participative, and they are less autocratic compared to men. Female leaders use a transformation leadership approach where workers are rewarded for their achievement while men focus on a mistake by subordinates.

Female managers made the dominated area such as business and finance adapt towards male-dominated leadership traits compared to what is typically seen as a female leadership approach. This adaption, however, takes more energy from female as they are not in the position to act normally, and this put them under pressure and stress. A character that is highlighted as a definite advantage for women is that they tend to be better at working as a minority in the banking industry. Women have been the minority in many cases than men, and this makes them adjust quickly and become more understanding of workplace diversity. The women's and men's competitiveness as managers have reduced. Men are becoming less competitive as leaders, while female managers remain at the same level over the period. It is argued that leadership training has changed over time, and it has promoted collaboration, which leads to joint leadership type between the genders. Moreover, governments and societies are working towards the equal working environment through legislation and the introduction of school programs that encourage women to venture into male-dominated fields such as finance and economics.

The first Women’s Rights Convention in America was held in 1848. The Declaration of Sentiments called for women’s suffrage and opportunity for women to take part in profitable employments (Lorenzo & Reeves, 2018). It took seventy years of protest and campaigns until the American Senate passed the 19th amendment, giving women the right to participate in democratic processes. This means much can be done to create opportunities for women to participate in American bank services. Achieving gender diversity makes sense, and it is the right thing to do. Many clients view gender diversity in senior management as a requirement and consider the diversity policies of the bank that serve them before engagement. Lack of diversity could, therefore, lead to loss of business opportunities. New requirements at the government level also prompt banks to disclose diversity initiatives. The expectation in the state of California is that principal offices should have at least one female member of the board.

While financial institutions within America are seemingly doing well in inclusion and gender diversity, there is room for improvement. Canada has 34.5%, Sweden has 45%, and France has 35% of women sitting on boards of directors in banking institutions (Deloitte, 2017). Bank of America, Bank of the West, the CIT Group, and HSBC have female leaders occupying senior positions. Comprehensive gender diversity is slowly being realized; women are breaking the glass ceiling and carving a path for young females through persistence and hard work.

According to Deloitte Company, in 2019, the proportion of women in a leadership position with banks in 2019 was 22%, and it is projected that this number will grow to about 30% by 2030 (Rogish, Sandler, & Shemluck, 2019). This is still below parity. At the organizational level, for each addition woman in the bank, the number of women in senior positions rose three times. The challenge of success is that women in a senior position within banks have not kept pace with the new workers, and the gap is widening. This means that there should be a strategy for improving leadership outcomes for women, and the strategy should be inclusive and multifaceted. Some of the factors that contribute to this increase include intentional recruitment, mentoring, sponsorship, and healthy peer networks. The banking industry is making a step towards achieving gender diversity. More women currently enjoy a longer, senior-level career and satisfying positions in financial institutions.

Comment by S. Strother: You must create your own figures, not copy and paste

Women are not involved in management and leadership issues because they lack the necessary experience for these positions. Though there are few women in top ranks in banks and they are better educated compared to male colleagues, yet they get lower pay. Gender diversity has been linked to an increase in business profitability. Diversity and other social involvement are critical measures of success when considering business performance. Despite this, achieving a balance in gender employment and promotion remain a challenge for many banks (Fawcett, 2019). The number of men and women is almost equal in the American labor market; however, the number of women dwindles in senior positions. Women make up 5.4% of CEOs at 500 big companies in the United States. Unfortunately, while some banks have instituted diversity and inclusion in response to gender discrimination and diversity issues, traditional programs have hindered the share of women in leadership.

Many factors influence the decision-making process of any organization. The state law mostly governs the practices and policies that the senior management and the board use to make the decision. In the United States, roughly 106 states have adopted laws that balance the authority assigned with the right accountability (Steffensmeiera, Schwartzb, & Rochea, 2015). The Enron Company in 2001 came on the spotlight as a business with gender exclusion. Before this company collapsed, financial analysts state that the company manipulated its financial disclosures, relied on hypothetical revenues, and concealed debts in its accounting practices. The revelation of Enron management misconduct led to the company file for bankruptcy protection.

The executives of this company engaged in extensive fraudulent deals to inflate the business earing and increase the stock price. The business used accounting practices to conceal extensive losses through partnership. For any business developing internal control, mitigate the risk that the management will try to manipulate. Women typically were not involved in the conspiracy groups. When women are involved in fraudulent deals, they usually have minor roles and make less profit compared to their male counterparts. Two pathways define female involvement, and these are utility and relational (Steffensmeiera, Schwartzb, & Rochea, 2015). The paralleling gendered labor market grouping process that shapes and limits women's entry is senior management, the sex discrimination in bank criminality is pervasive, and this suggests a shift in gender socialization and women likely to be involved in white-collar crimes.

Banks have an essential position in society. They have a recognizable brand that employs many people around the world, and they act as the interface for the people through their investment operations and retail deals. This reach gives banks the power to change the perception of the people and lead by example. For example, Barclays' Bbank is known for supporting the LGBT group, and this demonstrates the rest the gay person expects from the bank and probably the full society (Terjesen, Couto, & Francisco, 2016). Through banking products and services, such as the access to banking for people who are partially sighted or the blind, banks make a difference for workers and the general public. Workers need to see the issue of integration for the business to benefit. Achieving change in a leader requires bottom-top support. Comment by S. Strother: capitalize proper nouns

The Human Resource department brings a lot of gender diversity and inclusion. The support ofSupporting women and in management roles is essential if the workers are expected to benefit. It is argued that ideas from women are less likely to win the support they need because a majority do not value these ideas, and they do not see the need for them. A contrasting employee perception at senior management drives the tension. When the management is conscious of benefiting from a change of focus on gender diversity, they are most likely to promote the inclusion (Chandani & Mahmood, 2018; Oyotode-Adebile & Raja, 2019). The most significant pressure is on the management and the CEO, for whom gender diversity is a significant concern. For instance, Lloyds Banking Group stressed the importance of gender diversity and how it is expected and the action to be taken. This bank commits to increasinge the number of women who hold senior management roles. The type of bank, the composition of the workers, and its customers influence the focus of gender diversity. Comment by S. Strother: which one? Why "the" hr dept?

The goal of management should be to enhanceimprove the understanding of different cultures and how gender diversity can improve performance. The fact that the banking industry should adapt their gender diversity policies to account for the internal change is essential. This provides the flexibility to create the environment reflecting workers' experience. Other banks concentrate on a different form of diversity over others in a certain period. A good example is Barclay’s Bank, which supports and sponsors LGBT events (Fawcett, 2019). The inclusion and commitment to have gender diversity means that banks aim to integrate society by designing new services that consider the needs of the audience. Aligning diversity needs with the business imperatives means the initiative receive more significant support from a business that it would be the case. Comment by S. Strother: USE THE same spelling, the proper spelling

Data and research finding leads to growing evidence that strong economic case for gender inclusion. Banks workers need to be as diverse at the customers they serve, across their footprint, to provide services and products that the clients want. A U.S. firm, Catalysts, a company in the United States, researched the effects of employing female on board in the Fortune 500 companies. The findings of this study suggest that heterogeneous boardroom create a productive corporate culture, lower risk, and improve results (Adams & Funk, 2015; Bart & McQueen, 2017; Kılıç & Kuzey, 2017). A study by McKinsey Company in 2015 shows that there is a significant relationship between financial performance and the extent of gender diversity in the leadership team. While this evidence support correlation, and not a causal link, the research finding indicate that banks with diverse leadership team are more successful. The research supports a growing body of evidence that a diverse bank is better able to win top talent, gain increasing returns, and improve the workers' satisfaction. In the UK, every 10% jump at senior management level increases EBIT of 3.5%, the same increase in board management leads to a 4.9% increase of EBIT. The notable change starts to take effect when the female members in senior management reach 22%; this is the tipping point. Comment by S. Strother: supports

Even when empirical studies do not establish that board diversity influences the management directly in terms of shareholder value, some researchers argue that gender inclusion enhanced the governance, and this leads to better decision-making outcomes and processes. One explanation for the concept of better governance is that women and men lead business entities differently. Some researchers argue that women lead organizations is a more collaborative way, and this is associated with board activity and reduce conflict. An increase in representation of the number of women in the managerial roles increases the likelihood of benefits of engagement and reduce conflict (L.Owena & JuditTemesvary, 2018; Chandani & Mahmood, 2018). A homogenous group has excessive conformity that undercuts the ability to assess other group members. The crowd theory yields valuable guidance for ways of improving the board outcomes. Using the framework centered on decentralization, diversity, and independence, increasing the number of women in senior management introduces a game-changing proficiencies and perspective. Women enhanceimprove board independence because they tend to be inquisitive, and they can identify various potential options. These studies, however, help to promote essential questions on ways and means of structuring the board and senior management to increase the effectiveness of decision-making. Comment by S. Strother: how are women (plural) in the manager?

Women are traditionally excluded from senior management and active workforce, and they remain underrepresented in decision-making forums. They experience the glass ceiling effect, and this tradition remains in an unfavorable situation. According to the Pew Research Center, women leadership power is limited, although women form 40% of the workforce in over 80 countries. The number of female senior managers and the rate of increase in their number remain scarce (Jia, 2017). Women have increased their ground on board in recent years. The number of women directors on boards in big firms in the EU countries has increased from 19% to 23% from 2014 to 2016 (Ahern & Dittmar, 2017). These meager numbers of females in senior management show there is a long way to achieve equal career opportunities for women. Even when they are in high ranked positions, women face challenges such as discrimination. In effect, they experience issues of visibility. In some organizations, gender exclusion results in the categorization of workers in a way that stereotypes influence decision-making. In general, wWomen in general are considered less suitable for managerial positions when compared to male workers, who seem to represent technical competencies such as self-confidence and assertiveness. The fact that their demands are essential to getting high ranked managerial jobs contributes to the problem; even more so when the female gender is associated with soft competencies such as communication, teamwork, and emotional support.

According to social identity theory, group members protect their self-esteem in order to achieve positive social identity (Bart & McQueen, 2017). This causes discrimination, indirectly and directly, competing and separating the out-group by giving considerable treatment to the in-group, and this again leads to in-group bias. According to the social identity theory, inequality exists between groups, even when the industry agents are not prejudicial. This form of discrimination results in a vicious circle over time, as on exit, the average person from the sidelined group are discouraged from participating in the industry or improving their skills as their perceived return on investment is less compared to the non-discriminated group (Sabatier, 2015). AMoreover, according to the occupational segregation model, representative of some groups has unequal access to job opportunities. This implies that some occupations and positions are separated; some are for men, and others are left for women. The segregation occurs on different grounds. The self-selection phenomenon posits that selection of women in low-level positions instead of dedicating themselves to higher managerial positions. This creates the glass escalator effect, through which ladies should step aside as men surpass them to top of the organization.

The lack of female directors is attributed to the reduced number of women in senior positions. Management of banks is interesting because it has the traditional position viewed as male space requiring a specific skill set (Dezsö & Ross, 2015). Simultaneously, women who are likely to get a power risk backlash effect, such as economic and social punishment for defying existing stereotype, and risk of hiring and prejudice discrimination. Employed women who have stereotypical male behaviors face setbacks because they do not fit in female set stereotypes, more so in senior positions. One reason for this phenomenon is that women who have hard skills consistent with successful directors or managers are perceived negatively by co-workers for behaving against the conventional feminine way (Lorenzo & Reeves, 2018). These women are considered more competent, but they are also less likely to be promoted.

Women need to comply with the masculine character if they are to break the glass ceiling, act as the masculine manager, and exceed male cultural norms. Organizational practices, cultures, and structures provide the context within women to decide which positions and process to use to get to senior management (Deloitte, 2017). The female family role traditionally hinders the commitment of women and their reduced lack of involvement in the bank network, and this limits their access to senior jobs.

It is theorized that women are distracted because of parenting, claiming that they have more responsibility with children, and they cannot travel and change their schedules with short notice or drop out of work altogether to stay at home and consequently fall behind in their careers. (Owen & Temesvary, 2019). This is not a relevant excuse in the current banking setting because the possibility of video meetings has eased communication and significantly reduced the need to travel. Every parent juggles with time management. Commonly, women tend to focus on the need of others, and they accept more family responsibilities. Long maternity leaves the result to less pay and slow advancement in career compared to men. While it is generally believed that banks are gender-neutral, employees are expected to correspond and display more masculine characters and qualities. Research by Owen and Temesvary (2019); Nguyen, Locke and Reddy (2015) shows that men's styles are better rewarded compared to women's characteristics ways. Men get more promotions and sponsorship compared to women at similar conditions. Comment by S. Strother: Yes, but part of this research emphasizes women drop out of work altogether to stay at home and consequently fall behind in their careers.

It is assumed that women are skillful compared to men in communication and team building, however, they are worse in business skills. Based on this assumption, women are matched to a different job, which requires the different traits, in line with the dominant views. Research by CITATION Cha18 \l 1033 \m LOw18 (Chandani & Mahmood, 2018; L.Owena & JuditTemesvary, 2018) Chandani and Mahmood (2018); L.Owena and JuditTemesvary (2018) shows that managers are associated with male characters. This situation explains why the disproportionate number of men hold the highest paying jobs, and they have the best opportunity for advancement. Managers and workers of the banking industry tend toward a homosocial society in an organization, and they draw and hire co-workers who have similar positions and views to themselves. Summing this section, women are victims of both the social and personal consequences of the disadvantageous situation inside and outside the organization because of several biased and cultural decision-making practices. The stereotypes work against their competences and make them lose managerial positions.

Few women can gain access to career mentors who will help them gain the visibility needed to transform into senior positions. Female workers need to seek resources for developing their career. According to Low, Roberts and Whiting (2015), mentoring relationships are critical for minority groups because they face challenges in their career development. Women face different challenges than men. The mentors are important to the development of the career of men in the banking industry because the females encounter more obstacles such as lack of networks, gender inequality, and competition from male-dominated managerial hierarchies. The mentoring is beneficial to both protégé and mentor because it informed the parties about their values, roles, identities, and challenges. Mentoring helps women achieve career success. Women need mentors to coach them and pull them up the ranks to create opportunities, job satisfaction, higher salaries, and promotion. The traditional structure of mentorship hinders women's career development. The models of mentorship are masculine.

Traditional mentorship is framed to depend on hierarchical relationships and power-depended to maintain the status quo. The traditional model is supported in positional leadership that leaves no room for females to come up the ranks. For example, in banks, there is a lack of support to expand opportunities and resources for females (Low, Roberts, & Whiting, 2015; Garcia-Solarte, Garcia-Perez de Lema, & Madrid-Guijarro, 2018). Formal mentoring may be instituted by banks, but forced mentoring are less effective in the sense of the resources invested in the mentoring relationship. The relationship is less sympathetic, and the assigned mentors are reluctant to engage in career development because of fear that their place will be taken. Female protégés achieve a lot from being coached by a person with a higher identity, having gone through career blocks that females face.

This is another unpleasant truth why there are few women at the senior leadership boards and positions. Women generally lack the network and sponsors because there are few female role models in higher positions. Informal networks shape career paths, and they increase the speed and likelihood of promotion, but the lack of mentors and role models reduce the speed (Adams & Ferreira, 2015; Oyotode-Adebile & Raja, 2019). Even in cases where women have networks, they use their networks differently compared to men. Women networks have different functionality. Women in higher ranks in banks also signal that being female at such levels is a huge responsibility, and it creates commitment and a lack of time to mentor others. Therefore, young females could miss being executive leaders because of limited senior positions and lack of role models.

According to Adams and Funk (2015), women self-select not to work in a competitive position. When given the change, men choose a more competitive environment compared to women. Risk and performance do not contribute to this selecting process, but gender differences and confidence for performing in a competitive industry. The possible explanation for this difference is that men are generally overconfident and interest in venturing in a risky environment (Adams & Funk, 2015; Lorenzo & Reeves, 2018; Sabatier, 2015). In effect, if fewer women are willing to compete in the banking industry, such as promotion and selection to top functions, fewer women will win. Women find it unattractive to bear responsibilities that interfere with family life. Norway passed a law which requires all organizations to have 40% of its directors to be women. This implementation led to a drop in stock prices (Post & Byron, 2016). The decrease was, however, attributed to the promotion of less experienced people. The implementation of the law in which demands gender ratio has a negative effect if an incompetent person is brought on board. Research shows that gender diversification in the board has a positive effect if it is not forced and when competence is considered. Comment by S. Strother: s Comment by S. Strother: s Comment by S. Strother: lots of grammar errors in this paragraph

The banking industry is evolving with changes in technology, new strategies, and better talent. In order for the banks to remain competitive, they must stay diverse. The changes and improvements in technology provide insight into the modern workplace for women because it reduced the issues of gender exclusion in the job place. Many banks embrace the male-dominated culture expressed in hierarchical, sex-segregated, and gendered power structures (Lorenzo & Reeves, 2018). In many organizations, the values of female workers are less significant compared to male values. Some bank policies lead to entrenchment to the gender imbalance in the labor force, which promotes segregation between genders. According to cultural transformation, there is a need to have systematic changes that also change cultural patterns based on future expectations (Christiansen et al. (2016). The cultural transformation theory explains why gender inequality is a profound workplace. These manifestations are punishment for traditional organizational cultures, maternity leave, and lacks of skills between genders (Mercanti, 2015). Comment by S. Strother: no article

Banks should attract the best workers in order to remain competitive (Christiansen et al. (2016). Those in a leadership role may not mirror the diversity that is represented by people with ambition and knowledge to occupy senior positions. Lack of earning places strain on the gendered system and negatively affects the professional development for females. Structural barriers affect the promotion of gender inclusion. These barriers can be grouped into external and internal barriers. The internal barriers are related to trait and personality variables; these are barriers related to stereotyping roles which society places on both females and males in the workplace. The jobs assigned to women in banks are linked with their perceived personality traits, behavioral pattern, and motivational needs. The external barriers are related to structural and situation variables. The internal and external barriers are an obstacle to female professional growth.

The heart of banking and financial institutions is male-dominated. The original cause of gender inequality between males and females is the claim that biological difference defines social roles. The only difference between these genders is assigned in biology. The reproductive capacity assigned at birth leads to the gender assigned roles and identity. Female image is developed right from childhood as they are expected to be subordinate to males through the gender stereotype (Hinds, 2015; Matsa & Miller, 2015). Although society assigns gender roles to children, gender is subject to biology and not society. A society determined the gender responsibilities; the women are made to be subject. Society supports these gender roles as children move from infancy to childhood. The family-work imbalance and the subsequent division of labor hinder professional growth. The aspect also contributes to the barrier of female advancement in the profession that females are workers, mother, and wife, whereby family responsibilities led females to leave the profession to care for children (Linda-Eling, Marshall. Rallis, & Moscardi, 2015; Ahern & Dittmar, 2017). The female is more uncommitted than men to job demands due tobecause of the parenting role that cause delays in career advancement and opportunities. .

According to Post and Byron (2016); Nguyen, Locke and Reddy (2015), females with children have less opportunity for occupation and education advancement and development. The gender socialization that stresses the prominence of women in the home is counter to professional development. The factor underlying the gender gaps in productivity between these genders, and they affect the quality of occupational choice, education, and commitment to the labor market. Because of family responsibilities, females have less time in the labor market, and this leads to depreciation of their earning and skills affecting gender diversity in senior positions in banks. Education also contributes to gender exclusion in the job market. Educated mother has smaller families, and this gives them time to advance in their career. The lower gender equity in education improves female and male human capital.

The theoretical framework gives insight into the effects of gender diversity on bank performance. There is no single theory that supports and explains the relationship between these variables (Groening, 2018). Some theories support the relevancy of gender balance in management board and senior positions, and their implication of the bank returns in different ways. The literature review also gives conflicting findings from empirical studies. The differences in research findings arise from many factors, such as sample population from different banks, jurisdiction, and regulatory requirements. There is a different spectrum of model specifications and different time frames (Post & Byron, 2016). Prior empirical studies and the theoretical framework does not demonstrate consensus on the relationship between gender diversity and bank performance in a competitive market.

The link between gender diversity performance remains unclear (Post & Byron, 2016). The relationship between these variables largely depends on the relationship between directors, the bank governance structure, and the director's traits. The board gender balance is also affected by the scope of complexity of the bank. The empirical research on the relationship between gender diversity and performance also face the endogeneity issue. There is consensus that the characteristics of the board on gender diversity are affected by the scope of complexity of the respective bank. It is a choice that business makes to determine the structure of the board and its composition that suits the nature and needs of the business model. Therefore, thisThis study posits that there are inconsistent findings of the existing literature because of insufficient attempts to address the endogeneity.

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