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Board diversity and firm performance: an empirical investigation in the Brazilian market

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  • João Batista Fraga

    (Fundação Getulio Vargas)

  • Vinícius Augusto Brunassi Silva

    (Fundação Getulio Vargas)

Abstract

This article investigates the diversity of the boards of directors of Brazilian companies listed on the BM&FBovespa with respect to gender, age, educational attainment and independence, to ascertain whether there is a relationship between any of these diversity measures and firm performance. The study covers all companies without majority control, a type of corporate structure that first appeared in Brazil in 2005. The results indicate that greater diversity in the educational disciplines and the presence or absence of independent board members negatively affect performance, while diversity in years of schooling has a positive effect. The presence of women board members is small, but firms that have at least one female director outperform those that do not.

Suggested Citation

  • João Batista Fraga & Vinícius Augusto Brunassi Silva, 2012. "Board diversity and firm performance: an empirical investigation in the Brazilian market," Brazilian Business Review, Fucape Business School, vol. 9(Special I), pages 55-77, March.
    • Handle: RePEc:bbz:fcpbbr:v:9:y:2012:i:specialissue:p:55-77
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    References listed on IDEAS

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    Cited by:

    1. Nisiyama, Edelcio Koitiro & Nakamura, Wilson Toshiro, 2018. "Diversidade do conselho de Administração e a estrutura de capital," RAE - Revista de Administração de Empresas, FGV-EAESP Escola de Administração de Empresas de São Paulo (Brazil), vol. 58(6), November.
    2. Sammy Thuo Kangea & Tabitha Nasieku & Willy Muturi, 2022. "Effect of Board Diversity on Earnings quality of Non-Financial Firms Listed at the Nairobi Securities Exchange," Journal of Applied Finance & Banking, SCIENPRESS Ltd, vol. 12(3), pages 1-4.
    3. Hassan Bashir Ibrahim & Caren Ouma & Jeremiah Koshal, 2019. "Effect of gender diversity on the financial performance of insurance firms in Kenya," International Journal of Research in Business and Social Science (2147-4478), Center for the Strategic Studies in Business and Finance, vol. 8(5), pages 274-285, September.
    4. Savio de Luna Pinto & Aline Alves de Andrade & Roselaine Cristina Borges & Celso Machado Jr., 2016. "Board Profile and its Influence on the Stock Value of Oil Companies and Gas," International Business Research, Canadian Center of Science and Education, vol. 9(8), pages 37-45, August.

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