Board Gender Diversity and its Effect on Firm Financial Performance: A Panel Study of Top 500 ASX Listed Firms

Abstract:     
The corporate governance literature reports mixed evidence on the relationship between board diversity and firm performance. The purpose of this study is to examine the association between board gender diversity and firm financial performance, and to investigate if a business case can be established for the appointment of women on corporate boards. Data for the top 500 Australian Securities Exchange (ASX) listed firms for the period 2005 through 2010 are used. Various panel data models of firm performance and control factors that are traditionally found to affect firm performance are estimated. Results indicate that after controlling for likely relevant factors, the proportion of women on boards of directors tends to have a positive effect on firm performance.

working papers series