Women on Board: Does Boardroom Gender Diversity Affect Firm Risk?

65 Pages Posted: 16 Jan 2014 Last revised: 16 Jun 2019

See all articles by Vathunyoo Sila

Vathunyoo Sila

University of Edinburgh

Angelica Gonzalez

University of Edinburgh

Jens Hagendorff

University of Edinburgh - Business School

Date Written: 2016

Abstract

We investigate the relationship between boardroom gender diversity and firm risk. To identify a causal effect of gender on risk, we use a dynamic model that controls for reverse causality and for gender and risk being influenced by unobservable firm factors. We find no evidence that female boardroom representation influences equity risk. We also show that findings of a negative relationship between the two variables are spurious and driven by unobserved between-firm heterogeneous factors.

Keywords: board of directors, gender diversity, equity risk, endogeneity

JEL Classification: G10, G34

Suggested Citation

Sila, Vathunyoo and Gonzalez, Angelica and Hagendorff, Jens, Women on Board: Does Boardroom Gender Diversity Affect Firm Risk? (2016). Journal of Corporate Finance (2016), Available at SSRN: https://ssrn.com/abstract=2379025 or http://dx.doi.org/10.2139/ssrn.2379025

Vathunyoo Sila (Contact Author)

University of Edinburgh ( email )

29 Buccleuch Place
Edinburgh, Scotland EH8 9JS
United Kingdom
+447428747109 (Phone)

HOME PAGE: http://https://www.business-school.ed.ac.uk/staff/ben-sila

Angelica Gonzalez

University of Edinburgh ( email )

Old College
South Bridge
Edinburgh, Scotland EH8 9JY
United Kingdom

Jens Hagendorff

University of Edinburgh - Business School ( email )

University of Edinburgh
29 Buccleuch Place
Edinburgh, Scotland EH8 9JS
UNITED KINGDOM

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