Addressing the Deficit: An Analysis of Boardroom Diversity Gaps and Progress toward Global Governance Standards in Bahrain

Abstract

this study aims to identify and describe the level of board diversity in Bahraini firms listed on Bahrain Bourse, also known as the Bahrain Stock Exchange (BSE), and estimate the disparity between the employed diversity in Bahrain compared to international standards. The research seeks to answer two key questions: (1) what is the description of board diversity in Bahraini firms listed on BSE? (2) What is the gap in board diversity levels between Bahraini firms listed on Bahrain Stock Exchange (BSE) and international practices? Hence, content analysis was employed to collect the required data from the annual reports of 114 publicly listed service firms between 2018 and 2022. Through data analysis, the study assessed the representation of diverse directors on the boards of Bahraini firms, focusing on gender diversity. The analysis revealed that Bahraini boards continue to be predominantly composed of male directors. Female directors accounted for only 5 percent of the total directors, with an average of 0.35 female directors per board. Based on the findings, the study recommends a review and revision of laws and regulations pertinent to the board of directors, including corporate law and the corporate governance code in Bahrain. These revisions are necessary to promote and ensure greater board diversification within Bahraini firms. The study goes beyond mere description and estimation by addressing the practical implications of the findings. By recommending a review and revision of laws and regulations related to the board of directors, including corporate law and the corporate governance code, the study offers actionable suggestions to promote greater board diversification in Bahrain.