The Critical Role of Women in Financial Governance: An Empirical Study of Regulatory Violations in the Banking Sector

Abstract

This study investigates the role of women in financial governance, focusing on how their participation affects regulatory violations in the banking sector. Using data from 24 listed banks in Taiwan from 2021 to 2023, logistic regression and chi-square tests were employed to analyze the impact of the proportions of female board members, executives, and employees on violation risks. Results show that a higher proportion of female board members significantly reduces the likelihood of violations—by 36.2% for every 1% increase. Female executives also show a protective effect, though more modest, while the proportion of female employees has a minimal or slightly adverse effect. The findings suggest that women’s involvement in senior governance strengthens oversight and compliance, contributing to sustainable financial governance. Policy recommendations include increasing female board representation, promoting their participation in key risk governance roles, and institutionalizing gender-balanced reforms.