Board Gender Diversity and Firm Valuation: Evidence from the Tunisian Stock Exchange

Motivated by the evolving landscape of corporate governance—the system for directing and controlling firms—and the growing importance of Equity, Diversity, and Inclusion (EDI), this study investigates their interplay with firm valuation. We examine the impact of board gender diversity and key financial variables on the market-to-book ratio of 38 Tunisian Stock Exchange companies (2019-2024). our questions are: What is the impact of the percentage of women on the board on the market-to-book ratio? And how do other financial factors influence this ratio? Using panel data analysis, our research reveals dividend policy and leverage positively influence market-to-book, while firm size has a negative impact. Interestingly, a higher percentage of women on the board is associated with a lower market-to-book ratio, contradicting expectations. These findings shed light on valuation drivers in an emerging market and underscore the complex role of board composition.