Volume 5, Number 4

Level of Diversity of Firms Listed on the Zimbabwe Stock Exchange

  Authors

Zvinaiye Chimbadzwa¹, Lighton Dube¹ and Emmanuel Guveya², ¹Zimbabwe Open University, Zimbabwe, ²AEMA Development Consultants, Zimbabwe

  Abstract

The study employed the quantitative methodology to establish the level of workforce diversity of thirty-five (35) firms listed on the Zimbabwe Stock Exchange using panel data for the period 2009 – 2015. The level of workforce diversity was measured using the Blau index. Workforce diversity variables used were board gender, board education and board executives. In addition, the study included non-workforce diversity variables such as geographic location and rural location diversity. The results show that gender and executive diversity were moderately diversified with mean diversity indexes of 0.32 and 0.36 respectively; whilst education was diversified with a mean of 0.60. Board gender in rural firms was diversified whereas, moderately diversified in non-rural firms. Board executive was moderately diversified in both rural and non-rural firms. Board education was also diversified for both rural and non-rural firms. Based on the above results, the study recommends that firms increase education, executive and gender diversity in rural locations in order to increase and enhance firm performance.

  Keywords

Workforce diversity, Blau index.