Journal of Business Ethics

, Volume 141, Issue 2, pp 337–350 | Cite as

Does Board Gender Diversity Influence Financial Performance? Evidence from Spain

  • Nuria Reguera-AlvaradoEmail author
  • Pilar de Fuentes
  • Joaquina Laffarga


In recent years, several countries have enacted guidelines and/or mandatory laws to increase the presence of women on the boards of companies. Through these regulatory interventions, the aim is to eradicate the social and labor grievances that women have traditionally experienced and which has relegated them to smaller-scale jobs. Nevertheless, and despite the advances achieved, the female representation in the boardroom remains far from the desired levels. In this context, it is now necessary to enhance the advantages of board gender diversity from both ethical and economic points of view. This article examines the relation between board gender diversity and economic results in Spain: the second country in the world to legally require gender quotas in boardrooms and historically characterized by a minimal female participation in the workforce. Based on a sample of 125 non-financial firms listed on the Madrid Stock Exchange from 2005 to 2009, our findings show that in the period analyzed the increase of the number of women on boards was over 98 %. This suggests that compulsory legislation offers an efficient framework to execute the recommendation of Spanish codes of good governance by means of the increase in the number of women in the boards of firms. Furthermore, we find that the increase in the number of women on the boards is positively related to higher economic results. Therefore, both results suggest that gender diversity in boardrooms should be incremented, mandatory laws being a key factor to do so.


Corporate governance Economic performance Gender diversity Regulatory intervention Code of good governance 

JEL classification

M48 M14 



The authors are grateful to Antonio J. Blanco-Oliver and Rafael del Pino-Mejías, Félix J. López Iturriaga, Thomas Clarke, and Sivakani Jayaprakash (Section Editor, Journal of Business Ethics), and three anonymous referees. All the remaining errors are our sole responsibility.


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Copyright information

© Springer Science+Business Media Dordrecht 2015

Authors and Affiliations

  • Nuria Reguera-Alvarado
    • 1
    Email author
  • Pilar de Fuentes
    • 1
  • Joaquina Laffarga
    • 1
  1. 1.Department of Accounting and Financial Economics, Faculty of Economics and Business StudiesUniversity of SevilleSevilleSpain

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