Journal of Business Ethics

, Volume 122, Issue 4, pp 709–723 | Cite as

Does Board Gender Diversity Have a Financial Impact? Evidence Using Stock Portfolio Performance

Article

Abstract

There is growing regulatory pressure on firms worldwide to address the under-representation of women in senior positions. Regulators have taken a variety of approaches to the issue. We investigate a jurisdiction that has issued recommendations and disclosure requirements, rather than implementing quotas. Much of the rhetoric surrounding gender diversity centres on whether diversity has a financial impact. In this paper we take an aggregate (market-level) approach and compare the performance of portfolios of firms with gender diverse boards to those without. We also investigate whether having multiple women on the board is linked to performance, and if there is a within-industry effect. Overall, we do not find evidence of an association between diversity and performance. We find some weak evidence of a negative correlation between having multiple women on the board and performance, but that in some industries diversity is positively correlated with performance.

Keywords

Gender diversity Corporate governance Financial performance 

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Copyright information

© Springer Science+Business Media Dordrecht 2013

Authors and Affiliations

  1. 1.QUT Business SchoolQueensland University of TechnologyBrisbaneAustralia
  2. 2.Research School of Finance, Actuarial Studies and Applied StatisticsAustralian National UniversityCanberraAustralia

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