Financial Markets and Portfolio Management

, Volume 30, Issue 2, pp 113–136 | Cite as

Does female management influence firm performance? Evidence from Luxembourg banks

  • Regina M. Reinert
  • Florian Weigert
  • Christoph H. WinnefeldEmail author


In this study, we examine the relationship between the proportion of women in top management positions at banks and these institutions’ financial performance. Using prudential data from supervisory reporting for all credit institutions in the Grand Duchy of Luxembourg from 1999 to 2013, we find a positive association between female management and firm performance. The economic effect is substantial: a 10 % increase in women in top management positions improves the bank’s future return on equity by more than 3 % p.a. Moreover, we show that this positive relationship is (i) almost twice as large during the global financial crisis than in stable market conditions and (ii) non-linear, with banks having 20–40 % female management being the most successful.


Management diversity Female management Bank performance 

JEL Classification

G21 J16 L25 M14 



The authors thank Claude Reiser, Conseiller de Direction 1\(^{\grave{e}re}\) Classe, for valuable research assistance and the anonymous referee for detailed comments and suggestions that were very helpful in improving the paper.


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Copyright information

© Swiss Society for Financial Market Research 2016

Authors and Affiliations

  • Regina M. Reinert
    • 1
  • Florian Weigert
    • 2
  • Christoph H. Winnefeld
    • 3
    Email author
  1. 1.School of ManagementUniversity of St.Gallen and Hogrefe ConsultingBernSwitzerland
  2. 2.School of FinanceUniversity of St. GallenSt. GallenSwitzerland
  3. 3.Commission de Surveillance Du Secteur Financier and Trier University of Applied SciencesLuxembourgLuxembourg

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