Managerial ownership and firm growth in the South Asian region: A moderated-moderation analysis using board gender diversity and masculine culture

We examine the impact of managerial ownership on firm growth in the South Asian region, considering the moderated moderation effects of board gender diversity and masculine culture. For the empirical investigation, we use an unbalanced panel dataset comprising 20,566 firm-year observations from four South Asian countries, representing 1469 firms across 10 industries between 2011 and 2023. Our baseline findings reveal that managerial ownership significantly improves firm growth. Our results further exhibit that board gender diversity positively moderates the relationship between managerial ownership and firm growth. However, a masculine culture negatively moderates the effect of board gender diversity on the relationship between managerial ownership and firm growth. To tackle possible endogeneity concerns, we use a two-step system generalized method of moments (GMM) technique, and our empirical results are robust to endogeneity. On the theoretical front, our findings support agency theory, resource-based theory, and gender socialization theory. We demonstrate that a gender-diverse board provides a governance context characterized by robust monitoring, diverse expertise, and ethical sensitivity. Within this context, the positive effects of managerial ownership on firm growth are amplified. Finally, we also contribute to the growing body of research on finance and culture by highlighting the impact of culture in either discouraging or reinforcing gender stereotypes.