Impact of Board Gender Diversity on Firm Value: International Evidence

Journal of Economics and Development, Vol.19, No.1, April 2017, pp. 65-76

12 Pages Posted: 9 Oct 2017

See all articles by Thi Thuy Anh Vo

Thi Thuy Anh Vo

University of Economics - University of Da Nang

Phan Nha Khanh Bui

Da Nang University of Economics

Date Written: April 7, 2017

Abstract

This paper focuses on the impact of board gender diversity on firm performance. Using a sample of 880 listed firms in 10 developed countries covering a nine year period, we find that gender diversity has a negative effect on firm market performance. The result is consistent when different robustness checks are employed. A negative correlation can be explained by the fact that the presence of women on boards increases monitoring function. When the investors’ rights are well protected by the legal system, this extra monitoring may be costly for firms. This finding suggests that a quota for the exact anticipation of female directors on boards should be carefully considered.

Keywords: Corporate governance; board gender diversity; firm performance; homogeneous effect

JEL Classification: J30

Suggested Citation

Vo, Thi Thuy Anh and Bui, Phan Nha Khanh, Impact of Board Gender Diversity on Firm Value: International Evidence (April 7, 2017). Journal of Economics and Development, Vol.19, No.1, April 2017, pp. 65-76, Available at SSRN: https://ssrn.com/abstract=3049432

Thi Thuy Anh Vo (Contact Author)

University of Economics - University of Da Nang ( email )

71 Ngu Hanh Son
Ngu Hanh Son
Danang City, Danang City 0511
Vietnam

Phan Nha Khanh Bui

Da Nang University of Economics ( email )

71 Ngũ Hành Sơn, Mỹ An, Ngũ Hành Sơn, Đà Nẵng
Vietnam

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