Do Women in Top Management Affect Firm Performance? A Panel Study of 2500 Danish Firms

37 Pages Posted: 11 Aug 2005

See all articles by Nina Smith

Nina Smith

Aarhus University - Department of Economics and Business Economics; IZA Institute of Labor Economics

Valdemar Smith

Aarhus University - School of Business and Social Sciences

Mette Verner

Aarhus University - Centre for Research in Social Integration and Marginalization (CIM)

Date Written: August 2005

Abstract

Corporate governance literature argues that board diversity is potentially positively related to firm performance. This study examines the relationship in the case of women in top executive jobs and on boards of directors. We use data for the 2500 largest Danish firms observed during the period 1993-­2001 and find that the proportion of women in top management jobs tends to have positive effects on firm performance, even after controlling for numerous characteristics of the firm and direction of causality. The results show that the positive effects of women in top management depend on the qualifications of female top managers.

Keywords: firm performance, female CEOs, board diversity, gender diversity

JEL Classification: G38, J16, M14

Suggested Citation

Smith, Nina and Smith, Valdemar and Verner, Mette, Do Women in Top Management Affect Firm Performance? A Panel Study of 2500 Danish Firms (August 2005). IZA Discussion Paper No. 1708, Available at SSRN: https://ssrn.com/abstract=780910 or http://dx.doi.org/10.2139/ssrn.780910

Nina Smith (Contact Author)

Aarhus University - Department of Economics and Business Economics ( email )

Universitetsparken
DK-8000 Aarhus C
Denmark
+45 8948 6413 (Phone)
+45 8615 5175 (Fax)

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

Valdemar Smith

Aarhus University - School of Business and Social Sciences ( email )

Nordre Ringgade 1
Aarhus C, DK-8000
Denmark

Mette Verner

Aarhus University - Centre for Research in Social Integration and Marginalization (CIM) ( email )

DK-8210 Aarhus V
Denmark
+45 8948 6416 (Phone)
+45 8615 5175 (Fax)

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