Abstract
BACKGROUND: This study focuses on the health of top executives, particularly women, and its impact on the success of banks. It explores how women's leadership and board diversity influence a bank's financial performance. The research further examines the role of women in leadership in reducing job burnout, alleviating psychological anxiety, and improving mental health within the banking sector. METHODS: This research combined primary data collected via structured questionnaires with secondary data from sources including the World Development Indicator, International Monetary Fund, and national financial records from Pakistan. Focusing on 50 traditional commercial banks operational from 2009 to 2022, the study employed a census sampling method to gather data from all the listed banks. This comprehensive data collection, totaling 500 observations, supported an in-depth analysis using diverse regression and validity models, alongside sensitive diagnostic tests, to assess how mental health issues and burnout among female leaders impact bank performance. RESULTS: This study reveals that banks with female Chief Executive Officers (CEOs) generally outperform those led by males, showing a positive correlation between the age, education, and reputation of female CEOs and bank performance. Furthermore, the presence of women in influential roles and on boards enhances performance in developing country banks. A significant finding is the inverse relationship between CEO burnout and bank performance, indicating that higher burnout levels correlate with poorer performance. This underscores the importance of banking institutions implementing strategies to alleviate job burnout, reduce psychological anxiety, and foster a supportive work environment to improve employee mental health. CONCLUSION: The research highlights that banks with female CEOs generally outperform those with male leadership in developing countries. Key findings show a positive correlation between the age and educational background of female CEOs and bank performance. Additionally, women on boards and in influential roles significantly boost bank performance. The study also identifies a critical inverse relationship between CEO burnout and bank performance, where higher burnout levels correlate with decreased performance. This underscores the importance of prioritizing employee well-being and mental health strategies within banking institutions. Implementing such measures can not only improve organizational performance but also enhance the sector's resilience and sustainability.