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Women in Top Management and Firm Performance

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Author Info
Smith, Nina () (Department of Economics, Aarhus School of Business)
Smith, Valdemar () (Department of Economics, Aarhus School of Business)
Verner, Mette () (Department of Economics, Aarhus School of Business)

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Abstract

The purpose of this study is to present new evidence on the relationship between gender diversity in management and firm performance. According to corporate governance literature, board diversity is expected to affect firm performance. Using a large data set with more than 10000 time-observations for all Danish firms with more than 50 employees over the period 1994-2003, the analysis suggests that the proportion of women in top management jobs has from none to positive influence on firm performance. However, the results show that the strength of the effects of women in top management depends on how top CEOs are defined and on the method of estimation of the model. Next, the results point towards a positive influence on firm performance of the staff representation in the supervisory board of the firm but more women representing the shareholders in the supervisory board of the firm seems to be unimportant.

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File URL: http://research.asb.dk/fbspretrieve/3874/wp_08-12
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Publisher Info
Paper provided by University of Aarhus, Aarhus School of Business, Department of Economics in its series Working Papers with number 08-12.

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Length: 28 pages
Date of creation: 01 Jan 2008
Date of revision:
Handle: RePEc:hhs:aareco:2008_012

Contact details of provider:
Postal: The Aarhus School of Business, Prismet, Silkeborgvej 2, DK 8000 Aarhus C, Denmark
Phone: +45 89 486396
Fax: +45 8615 5175
Web page: http://www.asb.dk/departments/nat.aspx
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Related research
Keywords: Firm performance; Female CEOs; Gender diversity in management;

Find related papers by JEL classification:
G38 - Financial Economics - - Corporate Finance and Governance - - - Government Policy and Regulation
J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination
M14 - Business Administration and Business Economics; Marketing; Accounting - - Business Administration - - - Corporate Culture; Social Responsibility

Cited by:
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  1. Ana Rute Cardoso & Rudolf Winter-Ebmer, 2007. "Mentoring and Segregation: Female-Led Firms and Gender Wage Policies," IZA Discussion Papers 3210, Institute for the Study of Labor (IZA). [Downloadable!]
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