The Impact of the 2012 NZX Listing Rule Change on Board Composition and Company Performance
34 Pages Posted: 14 May 2019 Last revised: 1 Aug 2019
Date Written: July 31, 2019
We examine the impact of the December 2012 NZX listing rule change that introduced compulsory disclosure about gender diversity on NZ boards. Although criticised for its timidity, the rate of growth in female-held directorships increased significantly after the introduction of the new rule, resulting in, by 2016, average female board representation being approximately double what it had been in 2012. However, we find no relationship between this response and company performance. Across six measures of operating and financial performance, firms that responded most strongly to the listing rule change fared, on average, no better or worse than those that stuck closer to the status quo.
Keywords: female directors, listing rules, firm performance
JEL Classification: G34, G38
Suggested Citation: Suggested Citation