What Do We Know About Women on Boards?

13 Pages Posted: 24 Nov 2015

See all articles by W. Gary Simpson

W. Gary Simpson

Oklahoma State University - Stillwater - Department of Finance

David Carter

Oklahoma State University - Stillwater - Department of Finance

Frank P. D'Souza

Loyola University - Sellinger School of Business and Management

Date Written: November 19, 2015

Abstract

In this article, we examine the current state of the research on firm performance and the gender diversity of firms’ boards of directors. First, we present and analyze descriptive statistics for 13,000 board seats of the Standard and Poor’s (S&P) 1500 companies for the years 2003-2007. Next, we review the conceptual propositions of the business case for women on boards, i.e., the link between women directors and firm financial performance. Finally, we review selected empirical evidence on the link between women directors and firm financial performance. We find the evidence on the business case for women directors is mixed, but tends to support the view that the ability of women directors to influence profitability and shareholder value is contingent on the specific circumstances of each company.

Suggested Citation

Simpson, W. Gary and Carter, David A. and D'Souza, Frank P., What Do We Know About Women on Boards? (November 19, 2015). Journal of Applied Finance (Formerly Financial Practice and Education), Vol. 20, No. 2, 2010, Available at SSRN: https://ssrn.com/abstract=2693058

W. Gary Simpson (Contact Author)

Oklahoma State University - Stillwater - Department of Finance ( email )

Spears School of Business
Stillwater, OK 74078-4011
United States

David A. Carter

Oklahoma State University - Stillwater - Department of Finance ( email )

Spears School of Business
Stillwater, OK 74078-4011
United States
405-744-5104 (Phone)
405-744-5180 (Fax)

Frank P. D'Souza

Loyola University - Sellinger School of Business and Management ( email )

4501 North Charles Street
Baltimore, MD 21210-2699
United States

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