Board Gender Diversity, Corporate Innovation, and Firm Value: International Evidence
80 Pages Posted: 5 Nov 2018 Last revised: 11 Apr 2019
Date Written: April 9, 2019
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
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