Board of Director Diversity and Firm Financial Performance

10 Pages Posted: 23 Jun 2003

See all articles by Niclas L. Erhardt

Niclas L. Erhardt

Rutgers School of Management and Labor Relations - New Brunswick

James D. Werbel

Iowa State University - Department of Management and Marketing

Charles B. Shrader

Iowa State University - Department of Management

Abstract

This study examines the relationship between demographic diversity on boards of directors with firm financial performance. This relationship is examined using 1993 and 1998 financial performance data (return on asset and investment) and the percentage of women and minorities on boards of directors for 127 large US companies. Correlation and regression analyses indicate board diversity is positively associated with these financial indicators of firm performance. Implications for both strategic human resource management and future research are discussed.

Suggested Citation

Erhardt, Niclas L. and Werbel, James D. and Shrader, Charles B., Board of Director Diversity and Firm Financial Performance. Available at SSRN: https://ssrn.com/abstract=416337

Niclas L. Erhardt (Contact Author)

Rutgers School of Management and Labor Relations - New Brunswick ( email )

Piscataway, NJ 08854
United States

James D. Werbel

Iowa State University - Department of Management and Marketing ( email )

Ames, IA 50011
United States
515-294-2717 (Phone)

HOME PAGE: http://www.public.iastate.edu/~jwerbel/homepage.html

Charles B. Shrader

Iowa State University - Department of Management ( email )

2167 Union Drive
1200 Gerdin Building
Ames, IA 50011-2027
United States
515-294-3050 (Phone)

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