The Impact of the 2012 NZX Listing Rule Change on Board Composition and Company Performance

36 Pages Posted: 14 May 2019 Last revised: 29 Sep 2020

See all articles by Glenn Boyle

Glenn Boyle

University of Canterbury - Economics and Finance; Sapere Research Group

Sanghyun Hong

University of Canterbury, Economics and Finance

Michael Foley

Independent

Date Written: July 7, 2020

Abstract

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 more than double what it had been in 2012. However, we find no relationship between this response and five measures of company performance.

Keywords: female directors, listing rules, firm performance

JEL Classification: G34, G38

Suggested Citation

Boyle, Glenn and Hong, Sanghyun and Foley, Michael, The Impact of the 2012 NZX Listing Rule Change on Board Composition and Company Performance (July 7, 2020). Available at SSRN: https://ssrn.com/abstract=3371269 or http://dx.doi.org/10.2139/ssrn.3371269

Glenn Boyle (Contact Author)

University of Canterbury - Economics and Finance ( email )

Private Bag 4800
Christchurch
New Zealand

Sapere Research Group ( email )

Level 9, Pencarrow House
1 Willeston St
Wellington, 6140
New Zealand

Sanghyun Hong

University of Canterbury, Economics and Finance ( email )

Private Bag 4800
Christchurch
New Zealand

Michael Foley

Independent

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