Skip to main content
SpringerLink
Log in

The impact of female directorship on firm performance: a systematic literature review

  • Review Paper
  • Published:
Review of Managerial Science Aims and scope Submit manuscript

Abstract

This paper presents a systematic literature review on the impact of female directorship on firm performance. We follow Preferred Reporting Items for Systematic Reviews and Meta-Analyses (PRISMA) to carry out this study. The Scopus database has been used for the identification of all the relevant documents. Several filters and manual screens have been carried out to identify a final set of 984 journal articles. We conduct a content analysis of the top 100 most influential papers ranked based on their average citations per year. The analysis covers a wide range of aspects such as research methodology, the variables and proxies used for female directorship and firm performance, main empirical findings, the sample country, the number of countries included in the sample, the sample region and the sample industry. Most of the top 100 papers (88%) have reported a positive impact on firm performance from having female directors. This study also identifies research gaps and proposes directions for future research. Our findings may have policy implications and can help regulators in devising appropriate corporate governance mechanisms with respect to female directorship.

This is a preview of subscription content, log in via an institution to check access.

Access this article

Log in via an institution

Price excludes VAT (USA)
Tax calculation will be finalised during checkout.

Instant access to the full article PDF.

Institutional subscriptions

Fig. 1
Fig. 2
Fig. 3
Fig. 4
Fig. 5
Fig. 6
Fig. 7
Fig. 8
Fig. 9
Fig. 10
Fig. 11
Fig. 12
Fig. 13
Fig. 14

Similar content being viewed by others

Notes

  1. The following search query is performed at the end of August 2022:

    TITLE-ABS-KEY ( ( “gender diversity” OR “female on the board*” OR “women on the board*” OR “female representation” OR “women on board*” OR “female on board*” OR “female director*” OR “women director*” OR “women presence” OR “female presence” OR ( “board diversity” AND gender OR female OR women ) ) AND ( performance OR disclosure OR risk OR profitability OR efficiency OR “corporate social responsibility” OR transparency OR “audit quality” OR “firm value” OR governance OR reporting OR management ) ) AND ( LIMIT-TO ( SRCTYPE, “j” ) ) AND ( LIMIT-TO ( SUBJAREA, “BUSI” ) OR LIMIT-TO ( SUBJAREA, “ECON” ) ) AND ( LIMIT-TO ( LANGUAGE, “English”)).

  2. Insider is defined as a director, senior officer, entity, or individual that owns more than 10% of a publicly traded company’s voting shares.

  3. Tobin’s Q is calculated as the market value of a company divided by its assets’ replacement cost.

  4. Word cloud is a visual representation of text data and is typically used to depict the importance/ frequency of some keywords relative to others.

  5. Some papers use multiple indicators; therefore, the aggregate number exceeds 100.

  6. This is because some empirical papers have reported mixed results.

References

  • Adams RB, Ferreira D (2009) Women in the boardroom and their impact on governance and performance. J Financ Econ 94(2):291–309

    Article  Google Scholar 

  • Adeabah D, Gyeke-Dako A, Andoh C (2018) Board gender diversity, corporate governance and bank efficiency in Ghana: a two stage data envelope analysis (DEA) approach. Corp Gov Int J Bus Soc 19:299–320

    Google Scholar 

  • Ahern KR, Dittmar AK (2012) The changing of the boards: the impact on firm valuation of mandated female board representation. Q J Econ 127(1):137–197

    Article  Google Scholar 

  • Ahmad N, Aghdam RF, Butt I et al (2020) Citation-based systematic literature review of energy-growth nexus: an overview of the field and content analysis of the top 50 influential papers. Energy Econ 86:104642

    Article  Google Scholar 

  • Al-Yahyaee KH, Al‐Hadi AK, Hussain SM (2017) Market risk disclosures and board gender diversity in Gulf Cooperation Council (GCC) firms. Int Rev Finance 17:645–658

    Article  Google Scholar 

  • Asatullaeva Z, Aghdam RFZ, Ahmad N et al (2021) The impact of foreign aid on economic development: a systematic literature review and content analysis of the top 50 most influential papers. J Int Dev 33:717–751

    Article  Google Scholar 

  • Bear S, Rahman N, Post C (2010) The impact of board diversity and gender composition on corporate social responsibility and firm reputation. J Bus Ethics 97(2):207–221

    Article  Google Scholar 

  • Bennett J, Lubben F, Hogarth S et al (2005) Systematic reviews of research in science education: rigour or rigidity? Int J Sci Educ 27:387–406

    Article  Google Scholar 

  • Bradford SC (1934) Sources of information on specific subjects. Engineering 137:85–86

    Google Scholar 

  • Bujaki ML, McConomy BJ (2010) Gendered interactions in corporate annual report photographs. Gender in Management: An International Journal

  • Byron K, Post C (2016) Women on boards of directors and corporate social performance: a meta-analysis. Corp Governance: Int Rev 24:428–442

    Article  Google Scholar 

  • Cabrera-Fernández AI, Martínez-Jiménez R, Hernández-Ortiz MJ (2016) Women’s participation on boards of directors: a review of the literature. Int J Gend Entrepreneurship 8:69–89

    Article  Google Scholar 

  • Callon M, Courtial J-P, Turner WA, Bauin S (1983) From translations to problematic networks: an introduction to co-word analysis. Social Sci Inform 22(2):191–235

    Article  Google Scholar 

  • Campbell K, Mínguez-Vera A (2008) Gender diversity in the boardroom and firm financial performance. J Bus Ethics 83(3):435–451

    Article  Google Scholar 

  • Carter DA, Simkins BJ, Simpson WG (2003) Corporate governance, board diversity, and firm value. Financ Rev 38(1):33–53

    Article  Google Scholar 

  • Carter DA, D’Souza F, Simkins BJ, Simpson WG (2010) The gender and ethnic diversity of US boards and board committees and firm financial performance. Corp Governance: Int Rev 18(5):396–414

    Article  Google Scholar 

  • Chen G, Crossland C, Huang S (2016) Female board representation and corporate acquisition intensity. Strateg Manag J 37(2):303–313

    Article  Google Scholar 

  • Cucari N, de Falco E, S., Orlando B (2018) Diversity of board of directors and environmental social governance: evidence from italian listed companies. Corp Soc Responsib Environ Manag 25(3):250–266

    Article  Google Scholar 

  • Ding Y, Chowdhury GG, Foo S (2001) Bibliometric cartography of information retrieval research by using co-word analysis. Inf Process Manag 37(6):817–842

    Article  CAS  Google Scholar 

  • Eagly AH (2016) When passionate advocates meet research on diversity, does the honest broker stand a chance? J Soc Issues 72:199–222

    Article  Google Scholar 

  • Erhardt NL, Werbel JD, Shrader CB (2003) Board of director diversity and firm financial performance. Corp governance: Int Rev 11:102–111

    Article  Google Scholar 

  • Espinoza MA, Gallegos DP, Espinoza MD (2020) Gobierno Corporativo en las organizaciones: un mapeo sistemático. Revista ESPACIOS 41

  • Francoeur C, Labelle R, Sinclair-Desgagné B (2008) Gender diversity in corporate governance and top management. J Bus Ethics 81(1):83–95

    Article  Google Scholar 

  • Garfield E (1990) Current eamments. Curr contents 32:3–7

    Google Scholar 

  • Geetha N, Kothainayaki S (2019) Research output of Anna University: a bibliometric study based on Scopus Database. Asian J Inform Sci Technol (AJIST) 9

  • Green CP, Homroy S (2018) Female directors, board committees and firm performance. Eur Econ Rev 102:19–38

    Article  Google Scholar 

  • Halliday CS, Paustian-Underdahl SC, Fainshmidt S (2020) Women on boards of directors: a Meta-Analytic examination of the Roles of Organizational Leadership and National Context for gender Equality. J Bus Psychol : 1–19

  • Haslam SA, Ryan MK, Kulich C et al (2010) Investing with prejudice: the relationship between women’s presence on company boards and objective and subjective measures of company performance. Br J Manag 21:484–497

    Article  Google Scholar 

  • Hirsch JE (2005) An index to quantify an individual's scientific research output. Proceedings of the National academy of Sciences 102(46):16569–16572

  • Hoobler JM, Masterson CR, Nkomo SM et al (2018) The business case for women leaders: Meta-analysis, research critique, and path forward. J Manag 44:2473–2499

    Google Scholar 

  • Husted BW, de Sousa-Filho JM (2019) Board structure and environmental, social, and governance disclosure in Latin America. J Bus Res 102:220–227

    Article  Google Scholar 

  • Jeong S-H, Harrison DA (2017) Glass breaking, strategy making, and value creating: Meta-analytic outcomes of women as CEOs and TMT members. Acad Manag J 60:1219–1252

    Article  Google Scholar 

  • Joecks J, Pull K, Vetter K (2013) Gender diversity in the boardroom and firm performance: what exactly constitutes a “critical mass? J Bus Ethics 118(1):61–72

    Article  Google Scholar 

  • Kagzi M, Guha M (2018) Board demographic diversity: a review of literature. J Strategy Manag 11:33–51

    Article  Google Scholar 

  • Kang LS, Payal (2012) Women on corporate boards: a literature review. Indian J Corp Gov 5:33–49

    Article  Google Scholar 

  • Khlif H, Achek I (2017) Gender in accounting research: a review. Managerial Audit J 32:627–655

    Article  Google Scholar 

  • Kirsch A (2018) The gender composition of corporate boards: a review and research agenda. Leadersh Q 29:346–364

    Article  Google Scholar 

  • Köseoğlu MA, Parnell J (2020) The evolution of the intellectual structure of strategic management between 1980 and 2019. J Strategy Manag 13:503–534

    Article  Google Scholar 

  • Kowalczyk N, Truluck C (2013) Literature reviews and systematic reviews: what is the difference? Radiol Technol 85(2):219–222

  • Lagasio V, Cucari N (2019) Corporate governance and environmental social governance disclosure: a meta-analytical review. Corp Soc Responsib Environ Manag 26:701–711

    Article  Google Scholar 

  • Liao L, Luo L, Tang Q (2015) Gender diversity, board independence, environmental committee and greenhouse gas disclosure. Br Acc Rev 47(4):409–424

    Article  Google Scholar 

  • Lock I, Seele P (2015) Quantitative content analysis as a method for business ethics research. Bus Ethics: Eur Rev 24:S24–S40

  • Lukviarman N, Johan AP (2018) Meta-analysis of corporate governance in Asia. Invest Manage Financial Innovations 15:267

    Article  Google Scholar 

  • Man CK, Wong B (2013) Corporate governance and earnings management: a survey of literature. J Appl Bus Res 29:391–418

    Article  Google Scholar 

  • Menegaki AN, Ahmad N, Aghdam RF et al (2021) The convergence in various dimensions of energy-economy-environment linkages: a comprehensive citation-based systematic literature review. Energy Econ 104:105653

    Article  Google Scholar 

  • Nguyen THH, Ntim CG, Malagila JK (2020) Women on corporate boards and corporate financial and non-financial performance: a systematic literature review and future research agenda. Int Rev Financial Anal 71:101554

    Article  Google Scholar 

  • Nielsen S, Huse M (2010) The contribution of women on boards of directors: going beyond the surface. Corp governance: Int Rev 18:136–148

    Article  Google Scholar 

  • Óladóttir ÁD, Christiansen ÞH, Aðalsteinsson GD (2021) If Iceland Is a Gender Paradise, Where Are the Women CEOs of Listed Companies? In: Marques J (ed) Exploring Gender at Work. Palgrave Macmillan, Cham, pp 317–337

    Chapter  Google Scholar 

  • Owen AL, Temesvary J (2018) The performance effects of gender diversity on bank boards. J Banking Finance 90:50–63

    Article  Google Scholar 

  • Pathan S, Faff R (2013) Does board structure in banks really affect their performance? J Banking Finance 37(5):1573–1589

    Article  Google Scholar 

  • Post C, Byron K (2015) Women on boards and firm financial performance: a meta-analysis. Acad Manag J 58:1546–1571

    Article  Google Scholar 

  • Pucheta-Martínez MC, Bel-Oms I, Olcina-Sempere G (2018) The association between board gender diversity and financial reporting quality, corporate performance and corporate social responsibility disclosure. Academia Revista Latinoamericana de Administración 31:177–194

    Article  Google Scholar 

  • Rao K, Tilt C (2016) Board composition and corporate social responsibility: the role of diversity, gender, strategy and decision making. J Bus Ethics 138:327–347

    Article  Google Scholar 

  • Reddy S, Jadhav AM (2019) Gender diversity in boardrooms–A literature review. Cogent Econ Finance 7:1644703

    Article  Google Scholar 

  • Reguera-Alvarado N, De Fuentes P, Laffarga J (2017) Does board gender diversity influence financial performance? Evidence from Spain. J Bus Ethics 141(2):337–350

    Article  Google Scholar 

  • Rodríguez-Ariza L, Cuadrado‐Ballesteros B, Martínez‐Ferrero J, García‐Sánchez IM (2017) The role of female directors in promoting CSR practices: an international comparison between family and non‐family businesses. Bus Ethics: Eur Rev 26(2):162–174

    Article  Google Scholar 

  • Rose C (2007) Does female board representation influence firm performance? The danish evidence. Corp Governance: Int Rev 15(2):404–413

    Article  Google Scholar 

  • Sainaghi R, Köseoglu MA, d’Angella F et al (2020) Sharing economy: a co-citation analysis. Curr Issues Tourism 23:929–937

    Article  Google Scholar 

  • Seebeck A, Vetter J (2022) Not just a gender numbers game: how board gender diversity affects corporate risk disclosure. J Bus Ethics 177:395–420

    Article  Google Scholar 

  • Siciliano JI (1996) The relationship of board member diversity to organizational performance. J Bus Ethics 15:1313–1320

    Article  Google Scholar 

  • Sila V, Gonzalez A, Hagendorff J (2016) Women on board: does boardroom gender diversity affect firm risk? J Corp Finance 36:26–53

    Article  Google Scholar 

  • Srinidhi B, Gul FA, Tsui J (2011) Female directors and earnings quality. Contemp Acc Res 28:1610–1644

    Article  Google Scholar 

  • Terjesen S, Sealy R, Singh V (2009) Women directors on corporate boards: a review and research agenda. Corp governance: Int Rev 17:320–337

    Article  Google Scholar 

  • Terjesen S, Aguilera RV, Lorenz R (2015) Legislating a woman’s seat on the board: institutional factors driving gender quotas for boards of directors. J Bus Ethics 128:233–251

    Article  Google Scholar 

  • Torchia M, Calabrò A, Huse M (2011) Women directors on corporate boards: from tokenism to critical mass. J Bus Ethics 102(2):299–317

    Article  Google Scholar 

  • Wang J, Coffey BS (1992) Board composition and corporate philanthropy. J Bus Ethics 11:771–778

    Article  Google Scholar 

Download references

Author information

Authors and Affiliations

  1. Department of Economics and Finance, College of Economics and Political Science, Sultan Qaboos University, P.O.Box 20, Postal Code. 123, Al Khoud, Sultanate of Oman

    Syed Mujahid Hussain, Nisar Ahmad & Fatima Fazal

  2. Department of Regional and Economic Development, Agricultural University of Athens, Athens, Greece

    Angeliki N. Menegaki

Authors
  1. Syed Mujahid Hussain
    View author publications

    You can also search for this author in PubMed Google Scholar

  2. Nisar Ahmad
    View author publications

    You can also search for this author in PubMed Google Scholar

  3. Fatima Fazal
    View author publications

    You can also search for this author in PubMed Google Scholar

  4. Angeliki N. Menegaki
    View author publications

    You can also search for this author in PubMed Google Scholar

Corresponding author

Correspondence to Syed Mujahid Hussain.

Additional information

Publisher’s Note

Springer Nature remains neutral with regard to jurisdictional claims in published maps and institutional affiliations.

Rights and permissions

Springer Nature or its licensor (e.g. a society or other partner) holds exclusive rights to this article under a publishing agreement with the author(s) or other rightsholder(s); author self-archiving of the accepted manuscript version of this article is solely governed by the terms of such publishing agreement and applicable law.

Reprints and permissions

About this article

Check for updates. Verify currency and authenticity via CrossMark

Cite this article

Hussain, S.M., Ahmad, N., Fazal, F. et al. The impact of female directorship on firm performance: a systematic literature review. Rev Manag Sci 18, 913–939 (2024). https://doi.org/10.1007/s11846-023-00677-2

Download citation

  • Received:

  • Accepted:

  • Published:

  • Issue Date:

  • DOI: https://doi.org/10.1007/s11846-023-00677-2

Keywords

JEL Classification

Search

Navigation