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

See all articles by Glenn Boyle

Glenn Boyle

University of Canterbury - Economics and Finance; Sapere Research Group

Michael Foley

Independent

Sanghyun Hong

University of Canterbury, Economics and Finance

Date Written: July 31, 2019

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 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

Boyle, Glenn and Foley, Michael and Hong, Sanghyun, The Impact of the 2012 NZX Listing Rule Change on Board Composition and Company Performance (July 31, 2019). 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

Michael Foley

Independent

No Address Available

Sanghyun Hong

University of Canterbury, Economics and Finance ( email )

Private Bag 4800
Christchurch
New Zealand

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