Abstract

This study investigates the relationship between board gender diversity and corporate risk-taking in Saudi Arabia, a context undergoing significant socio-economic transformation under Vision 2030. Using panel data from 148 non-financial firms listed on the Saudi Stock Exchange (2018–2023), we employ fixedeffects regression models to analyze how gender diversity-measured by the number, presence, and ratio of female directors-impacts risk-taking, proxied by the Altman Z-score. Results indicate that boards with higher gender diversity exhibit lower risk-taking behavior, with the total number of women (TW) and the presence of at least one woman (DW) showing statistically significant negative associations. In contrast, the gender ratio (RW) lacks significance, suggesting symbolic rather than substantive diversity impacts. The findings align with risk-aversion theories and highlight the moderating role of Saudi Arabia’s cultural and institutional context. This study contributes empirical insights to the global gender diversity discourse, offering policymakers and corporate leaders evidence to strengthen board inclusivity for sustainable risk management.

Keywords:Board gender diversity; Corporate performance; Risk-taking; Saudi Arabia