Representation of Women on Corporate Boards of Directors and Firm Financial Performance
Diversity within Diversity Management
ISBN: 978-1-78973-172-9, eISBN: 978-1-78973-171-2
Publication date: 7 May 2019
Abstract
Purpose
This chapter aims to evaluate the relationship between the representation of women on corporate boards of directors and its impact on firm financial performance.
Design/Methodology/Approach
This study utilized both a systematic review and a meta-analysis, using a sample of 40 published studies, which gleaned financial indicator and observation data from 28 different countries.
Findings
As indicated in previous studies, while positive, there was no significant correlation found between the number of women serving on the boards of directors and firm financial performance.
Research Limitations/Implications
The heterogeneity between the various studies analyzed may present difficulties in making general conclusions. The chapter could also be subject to publication bias, as the selection criteria included may indicate a need for further peer review. Future meta-analyses should include data associated with other financial indicators.
Practical Implications
This study shows how composition ratios of men/women serving on corporate boards should be addressed in terms of proving for a greater diversity of leadership perspectives.
Originality/Value
Previous systematic reviews and meta-analyses have analyzed country environments as moderators for the relationship between the representation of women on corporate boards and firm financial performance. The present study evaluates possible differences between the impact of the number of women serving on the board of directors on a variety of financial indicators (ROA, ROE, and Tobin’s Q).
Keywords
Citation
Herrera-Cano, C. and Gonzalez-Perez, M.A. (2019), "Representation of Women on Corporate Boards of Directors and Firm Financial Performance", Diversity within Diversity Management (Advanced Series in Management, Vol. 22), Emerald Publishing Limited, Leeds, pp. 37-60. https://doi.org/10.1108/S1877-636120190000022003
Publisher
:Emerald Publishing Limited
Copyright © 2019 Emerald Publishing Limited