Board Diversity and Firm Performance: Empirical Evidence from Hong Kong, South Korea, Malaysia and Singapore
41 Pages Posted: 7 Dec 2013
Date Written: December 5, 2013
This study shows that female directors have a significant impact on financial and non-financial measures of firm performance. In a sample of Asian firms from Hong Kong, South Korea, Malaysia and Singapore, we find that board gender diversity relates positively to return on equity as well as corporate governance performance and social performance but has an inconsequential effect on environmental performance. Nonetheless, the positive effects of gender diversity appear to be diminished in countries with higher female economic participation. This may be due to tokenism and suggests that forcing female director appointment or mandating gender quotas can reduce firm performance in countries with strong cultural resistance.
Keywords: Board of directors, Gender, Diversity, Asia
JEL Classification: G30, G34, G38, J16
Suggested Citation: Suggested Citation