Does Boardroom Gender Diversity Affect Shareholder Wealth?

International Journal of Finance and Economics, Forthcoming

Posted: 23 Jun 2021

See all articles by Ioannis Tampakoudis

Ioannis Tampakoudis

University of Macedonia - Department of Business Administration

Andreas Andrikopoulos

University of the Aegean - Department of Business Administration

Michail Nerantzidis

Hellenic Open University

Nikolaos Kiosses

University of Macedonia

Date Written: November 20, 2020

Abstract

We explore the effect of the presence of female directors in boards of directors on the economic impact of bank mergers and acquisitions (M&As). Using a unique, hand-collected dataset on 1,130 M&As announced by U.S. banks between 2003 and 2018, we find a significant negative relationship between female board membership and shareholder wealth after the banking crisis. Our results are robust to alternative model specifications that control for different proxies for gender diversity, heteroskedasticity, endogeneity and firm-specific variables. Our findings suggest that board gender diversity should be promoted with caution, and policy makers should acknowledge its limitations as a corporate governance mechanism.

Keywords: Gender Diversity, Mergers and Acquisitions, Banks, Abnormal Returns

JEL Classification: G21, G34

Suggested Citation

Tampakoudis, Ioannis and Andrikopoulos, Andreas and Nerantzidis, Michail and Kiosses, Nikolaos, Does Boardroom Gender Diversity Affect Shareholder Wealth? (November 20, 2020). International Journal of Finance and Economics, Forthcoming, Available at SSRN: https://ssrn.com/abstract=3866945

Ioannis Tampakoudis

University of Macedonia - Department of Business Administration ( email )

Thessaloniki
Greece

Andreas Andrikopoulos (Contact Author)

University of the Aegean - Department of Business Administration ( email )

8 Michalon Str
Chios, GR 82 100
Greece

Michail Nerantzidis

Hellenic Open University ( email )

Parodos Aristotelous 18
Patra, 26335
Greece

Nikolaos Kiosses

University of Macedonia ( email )

156 Egnatia St.
P.O. 1591
Thessaloniki, 54006
Greece

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