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Does Female Leadership Boost Firm Profitability? (in Finnish with an English abstract/summary)

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Author Info
Annu Kotiranta
Anne Kovalainen
Petri Rouvinen

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Abstract

Less than a tenth of Finnish firms’ CEOs and chairmen of the board are women; less than a fourth of Finnish firms’ board members are women. An empirical regression analysis of a large firm-level data set suggests that a company led by a women CEO is on average about ten per cent more profitable than a corresponding company led by a man, even after taking into account a number other factors (such as firm size and industry) possibly affecting profitability. The share of woman board members also has a similar impact. The effect of the chairman’s gender is statistically insignificant. These findings are partial correlations; due to data limitations neither causality nor underlying factors are studied

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File URL: http://www.etla.fi/files/1883_Dp1110.pdf
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Publisher Info
Paper provided by The Research Institute of the Finnish Economy in its series Discussion Papers with number 1110.

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Length: 23 pages
Date of creation: 29 Nov 2007
Date of revision:
Handle: RePEc:rif:dpaper:1110

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Related research
Keywords: gender; equality; discrimination; firm; profitability; corporate governance;

Find related papers by JEL classification:
J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination
J71 - Labor and Demographic Economics - - Labor Discrimination - - - Hiring and Firing
L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
M14 - Business Administration and Business Economics; Marketing; Accounting - - Business Administration - - - Corporate Culture; Social Responsibility
M51 - Business Administration and Business Economics; Marketing; Accounting - - Personnel Economics - - - Firm Employment Decisions; Promotions

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This page was last updated on 2010-1-5.

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