Gender Diversity in Corporate Boards: Evidence from Quota-Implied Discontinuities

43 Pages Posted: 29 Jun 2020

See all articles by Olga Kuzmina

Olga Kuzmina

New Economic School (NES); London School of Economics & Political Science (LSE) - Department of Finance; Centre for Economic Policy Research (CEPR)

Valentina Melentyeva

ZEW – Leibniz Centre for European Economic Research; University of Mannheim

Date Written: June 2020

Abstract

We use data across European corporate boards to investigate the effects of quota-induced female representation, under minimal possible identification assumptions. We find that having more women in board causally increases Tobin's Q, despite some negative effects on operating performance and more likely employment downsizings. We interpret this evidence as firms scaling down inefficient operations. Our results highlight that gender quotas are not necessarily a costly way of promoting equality.

Keywords: Gender diversity, Gender quota, Performance, women in boards

JEL Classification: D22, G32, J16

Suggested Citation

Kuzmina, Olga and Melentyeva, Valentina, Gender Diversity in Corporate Boards: Evidence from Quota-Implied Discontinuities (June 2020). CEPR Discussion Paper No. DP14942, Available at SSRN: https://ssrn.com/abstract=3638047

Olga Kuzmina (Contact Author)

New Economic School (NES) ( email )

45 Skolkovskoe shosse
Moscow, Moscow 121353
Russia

HOME PAGE: http://pages.nes.ru/okuzmina/

London School of Economics & Political Science (LSE) - Department of Finance ( email )

United Kingdom

Centre for Economic Policy Research (CEPR) ( email )

London
United Kingdom

Valentina Melentyeva

ZEW – Leibniz Centre for European Economic Research ( email )

P.O. Box 10 34 43
L 7,1
D-68034 Mannheim, 68034
Germany

University of Mannheim ( email )

Universitaetsbibliothek Mannheim
Zeitschriftenabteilung
Mannheim, 68131
Germany

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