Effect of Board Diversity and Corporate Governance Structure on Operating Performance: Evidence from the Nepalese Enterprises

This study examines the effect of board diversity and corporate governance structure on operating performance of Nepalese enterprises. The dependent variables are return on equity (ROE) and market price per share. The independent variables are CEO duality, outside directors, board diversity, board size, board meeting, audit committee, block shareholders, firm size and leverage. The study is based on 20 companies consisting of 10 banking and 10 insurance companies with 100 observations for the period of 2011–2012 to 2015–2016. We collected the data from banking and financial statistics and the Bank Supervision Report published by Nepal Rastra Bank, and the annual reports from the selected Nepalese enterprises. Multiple regression models are estimated to test the significance and importance of board diversity and corporate governance structure on operating performance of Nepalese enterprises.