Board Gender Diversity, Corporate Innovation, and Firm Value: International Evidence

80 Pages Posted: 5 Nov 2018 Last revised: 11 Apr 2019

See all articles by Dale W. Griffin

Dale W. Griffin

University of British Columbia (UBC) - Division of Marketing

Kai Li

University of British Columbia (UBC) - Sauder School of Business; China Academy of Financial Research (CAFR)

Ting Xu

University of Virginia - Darden School of Business

Date Written: April 9, 2019

Abstract

Using a novel database of firm patents and board characteristics across 45 countries, we examine both within- and cross-country determinants of board gender diversity and its relation to corporate innovation, and ultimately firm value. Corporate boards are more likely to include women in countries with a narrower gender gap, higher female labor market participation, and a less masculine culture. Firms with more gender diverse boards have more patents, more novel patents, higher innovative efficiency, lower risk-taking, and consequently higher firm value. Overall, the results are consistent with gender diverse boards creating firm value via simultaneously increasing innovation and decreasing risk-taking.

Keywords: board gender diversity; firm value; corporate innovation; patent novelty; innovative efficiency; risk-taking; regulations; national culture

JEL Classification: G18; G31; G32

Suggested Citation

Griffin, Dale W. and Li, Kai and Xu, Ting, Board Gender Diversity, Corporate Innovation, and Firm Value: International Evidence (April 9, 2019). Available at SSRN: https://ssrn.com/abstract=3266080 or http://dx.doi.org/10.2139/ssrn.3266080

Dale W. Griffin

University of British Columbia (UBC) - Division of Marketing ( email )

Canada

Kai Li (Contact Author)

University of British Columbia (UBC) - Sauder School of Business ( email )

2053 Main Mall
Vancouver, BC V6T 1Z2
Canada
604-822-8353 (Phone)
604-822-4695 (Fax)

HOME PAGE: http://finance.sauder.ubc.ca/~kaili

China Academy of Financial Research (CAFR)

1954 Huashan Road
Shanghai P.R.China, 200030
China

Ting Xu

University of Virginia - Darden School of Business ( email )

P.O. Box 6550
Charlottesville, VA 22906-6550
United States

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