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

Posted: 26 Mar 2012  

Alireza Vafaei

La Trobe University

Paul R. Mather

La Trobe University

Kamran Ahmed

La Trobe University - School of Accounting

Date Written: March 26, 2012

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.

Suggested Citation

Vafaei, Alireza and Mather, Paul R. and Ahmed, Kamran, Board Gender Diversity and its Effect on Firm Financial Performance: A Panel Study of Top 500 ASX Listed Firms (March 26, 2012). 2012 Financial Markets & Corporate Governance Conference. Available at SSRN: https://ssrn.com/abstract=2029140 or http://dx.doi.org/10.2139/ssrn.2029140

Alireza Vafaei (Contact Author)

La Trobe University ( email )

Department of Accounting
La Trobe Business School
Victoria 3086, 3086
Australia
+61 - 3 - 9479 3746 (Phone)

HOME PAGE: http://www.latrobe.edu.au/business/about/staff/profile?uname=A2Vafaei

Paul R. Mather

La Trobe University ( email )

School of Accounting
Bundoora
Melbourne, Victoria 3086
Australia
+61-3-9479-5264 (Phone)

Kamran Ahmed

La Trobe University - School of Accounting ( email )

Melbourne
Victoria, 3086
Australia
61394791125 (Phone)
61394792356 (Fax)

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