David Bourget (Western Ontario)
David Chalmers (ANU, NYU)
Rafael De Clercq
Jack Alan Reynolds
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Journal of Business Ethics 83 (3):435 - 451 (2008)
The monitoring role performed by the board of directors is an important corporate governance control mechanism, especially in countries where external mechanisms are less well developed. The gender composition of the board can affect the quality of this monitoring role and thus the financial performance of the firm. This is part of the “business case” for female participation on boards, though arguments may also be framed in terms of ethical considerations. While the issue of board gender diversity has attracted growing research interest in recent years, most empirical results are based on U.S. data. This article adds to a growing number of non-U.S. studies by investigating the link between the gender diversity of the board and firm financial performance in Spain, a country which historically has had minimal female participation in the workforce, but which has now introduced legislation to improve equality of opportunities. We investigate the topic using panel data analysis and find that gender diversity – as measured by the percentage of women on the board and by the Blau and Shannon indices – has a positive effect on firm value and that the opposite causal relationship is not significant. Our study suggests that investors in Spain do not penalise firms which increase their female board membership and that greater gender diversity may generate economic gains.
|Keywords||board of directors corporate governance endogeneity firm value women|
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References found in this work BETA
Norbert Wiener (1961). Cybernetics. New York, M.I.T. Press.
Claude Shannon (1948). A Mathematical Theory of Communication. Bell System Technical Journal 27:379–423.
Citations of this work BETA
Mariateresa Torchia, Andrea Calabrò & Morten Huse (2011). Women Directors on Corporate Boards: From Tokenism to Critical Mass. [REVIEW] Journal of Business Ethics 102 (2):299-317.
Jasmin Joecks, Kerstin Pull & Karin Vetter (2013). Gender Diversity in the Boardroom and Firm Performance: What Exactly Constitutes a “Critical Mass?”. Journal of Business Ethics 118 (1):61-72.
Javier Garcia-Lacalle & Sheila Ellwood (2015). The Influence of Presence and Position of Women on the Boards of Directors: The Case of NHS Foundation Trusts. Journal of Business Ethics 130 (1):69-84.
Muhammad Ali, Yin Lu Ng & Carol T. Kulik (2013). Board Age and Gender Diversity: A Test of Competing Linear and Curvilinear Predictions. [REVIEW] Journal of Business Ethics 125 (3):1-16.
Gregorio Sánchez-Marín, Juan Martín-Ugedo, Juan Baixauli-Soler, Antonio Mínguez-Vera & Maria Lucas-Pérez (2015). Women on the Board and Managers’ Pay: Evidence From Spain. Journal of Business Ethics 129 (2):265-280.
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