Board Gender-Balancing and Firm Value

63 Pages Posted: 14 Mar 2016 Last revised: 19 Mar 2019

See all articles by B. Espen Eckbo

B. Espen Eckbo

Tuck School of Business at Dartmouth; European Corporate Governance Institute (ECGI)

Knut Nygaard

Oslo Business School at Oslo and Akershus University College of Applied Sciences (HiOA)

Karin S. Thorburn

Norwegian School of Economics; Centre for Economic Policy Research (CEPR); European Corporate Governance Institute (ECGI)

Multiple version iconThere are 2 versions of this paper

Date Written: February 24, 2019

Abstract

Studies of Norway's pioneering gender balancing of corporate boards conclude that the gender quota law imposed large costs on shareholders of listed firms. We show that this conclusion does not survive simple econometric adjustments, whether applied to the prior data sets or our substantially expanded panel. With the improved econometrics, our estimates of abnormal stock returns and changes in Tobin's $Q$ fail to reject the hypothesis of a zero impact on firm value. We also document that boards' large-firm CEO experience did {\it not} decline, which is consistent with a deep pool of qualified female directors.

Keywords: Gender quota, director independence, valuation effect, long-run performance, corporate conversion, busy directors, director network power

JEL Classification: G38

Suggested Citation

Eckbo, B. Espen and Nygaard, Knut and Thorburn, Karin S., Board Gender-Balancing and Firm Value (February 24, 2019). European Corporate Governance Institute (ECGI) - Finance Working Paper No. 463/2016; Tuck School of Business Working Paper No. 2746786. Available at SSRN: https://ssrn.com/abstract=2746786 or http://dx.doi.org/10.2139/ssrn.2746786

B. Espen Eckbo (Contact Author)

Tuck School of Business at Dartmouth ( email )

Hanover, NH 03755
United States
603-646-3953 (Phone)
603-646-3805 (Fax)

HOME PAGE: http://www.tuck.dartmouth.edu/eckbo

European Corporate Governance Institute (ECGI)

c/o ECARES ULB CP 114
B-1050 Brussels
Belgium

Knut Nygaard

Oslo Business School at Oslo and Akershus University College of Applied Sciences (HiOA) ( email )

Pilestredet 35
Oslo, 0167
Norway

Karin S. Thorburn

Norwegian School of Economics ( email )

Helleveien 30
N-5045 Bergen
Norway
+4755959283 (Phone)

HOME PAGE: http://www.nhh.no/cv/thorburn

Centre for Economic Policy Research (CEPR)

London
United Kingdom

European Corporate Governance Institute (ECGI)

c/o ECARES ULB CP 114
B-1050 Brussels
Belgium

HOME PAGE: http://www.ecgi.org

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