IDEAS home Printed from https://ideas.repec.org/a/bla/asiaec/v39y2025i4p498-528.html

Gender diversity and firm performance: A multi‐level analysis of Japanese firms

Author

Listed:
  • Hiroko Okajima
  • Shigeharu Okajima
  • Tomoka Ito
  • Atsushi Morimoto

Abstract

This study analyzes how gender diversity at the board, managerial, and employee levels relates to firm performance in Japan, using panel data from 311 listed companies (2006–2017). We apply instrumental variable estimation to address endogeneity. Across all levels and models, we find no statistically significant association between female representation and performance (measured by Tobin's Q and profit margin). These insignificant results may reflect structural or cultural barriers that limit the impact of diversity. The findings suggest that increasing female representation alone may be insufficient without broader organizational reform and institutional support mechanisms.

Suggested Citation

  • Hiroko Okajima & Shigeharu Okajima & Tomoka Ito & Atsushi Morimoto, 2025. "Gender diversity and firm performance: A multi‐level analysis of Japanese firms," Asian Economic Journal, East Asian Economic Association, vol. 39(4), pages 498-528, December.
    • Handle: RePEc:bla:asiaec:v:39:y:2025:i:4:p:498-528
    DOI: 10.1111/asej.70003
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/asej.70003
    Download Restriction: no
    File URL: https://libkey.io/10.1111/asej.70003?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Judith K. Hellerstein & David Neumark & Kenneth R. Troske, 2002. "Market Forces and Sex Discrimination," Journal of Human Resources, University of Wisconsin Press, vol. 37(2), pages 353-380.
    2. Phelps, Edmund S, 1972. "The Statistical Theory of Racism and Sexism," American Economic Review, American Economic Association, vol. 62(4), pages 659-661, September.
    3. Marianne Bertrand & Sandra E Black & Sissel Jensen & Adriana Lleras-Muney, 2019. "Breaking the Glass Ceiling? The Effect of Board Quotas on Female Labour Market Outcomes in Norway," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 86(1), pages 191-239.
    4. Adams, Renée B. & Ferreira, Daniel, 2009. "Women in the boardroom and their impact on governance and performance," Journal of Financial Economics, Elsevier, vol. 94(2), pages 291-309, November.
    5. Kenneth R. Ahern & Amy K. Dittmar, 2012. "The Changing of the Boards: The Impact on Firm Valuation of Mandated Female Board Representation," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 127(1), pages 137-197.
    6. Kawaguchi, Daiji, 2007. "A market test for sex discrimination: Evidence from Japanese firm-level panel data," International Journal of Industrial Organization, Elsevier, vol. 25(3), pages 441-460, June.
    7. Biswas, Shreya & Sarkar, Jayati & Selarka, Ekta, 2025. "Women director interlocks and firm performance: Evidence from India," Pacific-Basin Finance Journal, Elsevier, vol. 90(C).
    8. Cristian L. Dezsö & David Gaddis Ross, 2012. "Does female representation in top management improve firm performance? A panel data investigation," Strategic Management Journal, Wiley Blackwell, vol. 33(9), pages 1072-1089, September.
    9. Hara, Hiromi, 2018. "The gender wage gap across the wage distribution in Japan: Within- and between-establishment effects," Labour Economics, Elsevier, vol. 53(C), pages 213-229.
    10. Kevin Campbell & Antonio Mínguez-Vera, 2008. "Gender Diversity in the Boardroom and Firm Financial Performance," Journal of Business Ethics, Springer, vol. 83(3), pages 435-451, December.
    11. David A. Matsa & Amalia R. Miller, 2013. "A Female Style in Corporate Leadership? Evidence from Quotas," American Economic Journal: Applied Economics, American Economic Association, vol. 5(3), pages 136-169, July.
    12. Franco Ernesto Rubino & Paolo Tenuta & Domenico Rocco Cambrea, 2021. "Five shades of women: evidence from Italian listed firms," Meditari Accountancy Research, Emerald Group Publishing Limited, vol. 29(7), pages 54-74, July.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Luca Flabbi & Mario Macis & Andrea Moro & Fabiano Schivardi, 2019. "Do Female Executives Make a Difference? The Impact of Female Leadership on Gender Gaps and Firm Performance," The Economic Journal, Royal Economic Society, vol. 129(622), pages 2390-2423.
    2. Marisetty, Vijaya Bhaskar & Prasad, Salu, 2022. "On the side effects of mandatory gender diversity laws in corporate boards," Pacific-Basin Finance Journal, Elsevier, vol. 73(C).
    3. Kilian Huber & Volker Lindenthal & Fabian Waldinger, 2021. "Discrimination, Managers, and Firm Performance: Evidence from “Aryanizations” in Nazi Germany," Journal of Political Economy, University of Chicago Press, vol. 129(9), pages 2455-2503.
    4. Masayuki Morikawa, 2014. "What Types of Companies Have Female and Foreign Directors?," AJRC Working Papers 1404, Australia-Japan Research Centre, Crawford School of Public Policy, The Australian National University.
    5. Alkhawaja, Abdallah & Hu, Fang & Johl, Shireenjit & Nadarajah, Sivathaasan, 2023. "Board gender diversity, quotas, and ESG disclosure: Global evidence," International Review of Financial Analysis, Elsevier, vol. 90(C).
    6. Francesco Devicienti & Elena Grinza & Alessandro Manello & Davide Vannoni, 2016. "Which Are the Benefits of Having more Female Leaders? Evidence from the Use of Part-Time Work in Italy," Carlo Alberto Notebooks 489, Collegio Carlo Alberto.
    7. Ying Li Compton & Sok-Hyon Kang & Zinan Zhu, 2019. "Gender Stereotyping by Location, Female Director Appointments and Financial Performance," Journal of Business Ethics, Springer, vol. 160(2), pages 445-462, December.
    8. Paul B. McGuinness & João Paulo Vieito & Mingzhu Wang, 2020. "Proactive government intervention, board gender balance, and stakeholder engagement in China and Europe," Asia Pacific Journal of Management, Springer, vol. 37(3), pages 719-762, September.
    9. Maria Fátima Ribeiro Borges & Graça Maria do Carmo Azevedo & Jonas Oliveira, 2025. "Literature review on gender diversity in top management teams of companies and its relationship with firm performance and audit quality," International Journal of Disclosure and Governance, Palgrave Macmillan, vol. 22(1), pages 177-201, March.
    10. Sanjukta Brahma & Chioma Nwafor & Agyenim Boateng, 2021. "Board gender diversity and firm performance: The UK evidence," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 26(4), pages 5704-5719, October.
    11. Lucas, Ryley & Gunasekarage, Abeyratna & Shams, Syed & Edirisuriya, Piyadasa, 2021. "Female directors and acquisitions: Australian evidence," Pacific-Basin Finance Journal, Elsevier, vol. 68(C).
    12. Alessandro Manello & Maurizio Cisi & Francesco Devicienti & Davide Vannoni, 2020. "Networking: a business for women," Small Business Economics, Springer, vol. 55(2), pages 329-348, August.
    13. Yuan Chang & Kun-Tsung Wu & Shu-Hui Lin & Chia-Jung Lin, 2024. "Board gender diversity and corporate social responsibility," International Journal of Corporate Social Responsibility, Springer, vol. 9(1), pages 1-29, December.
    14. Zeineb Ouni & Jamal Ben Mansour & Sana Arfaoui, 2022. "Corporate Governance and Financial Performance: The Interplay of Board Gender Diversity and Intellectual Capital," Sustainability, MDPI, vol. 14(22), pages 1-22, November.
    15. Pipke, David & Pönitzsch, Gert, 2015. "Effekte der Frauenquote in Aufsichtsräten: Ein Ausblick für Deutschland," Kiel Policy Briefs 93, Kiel Institute for the World Economy.
    16. Pawel Bukowski & Hannah Yi Wei, 2026. "Gender equality and innovation: evidence from UK companies," CEP Discussion Papers dp2179, Centre for Economic Performance, LSE.
    17. Breda, Thomas & Manning, Alan, 2016. "Diversity and social capital within the workplace:evidence from Britain," LSE Research Online Documents on Economics 69042, London School of Economics and Political Science, LSE Library.
    18. Morikawa, Masayuki, 2016. "What types of companies have female directors? Evidence from Japan," Japan and the World Economy, Elsevier, vol. 37, pages 1-7.
    19. Muhammad Safdar Sial & Chunmei Zheng & Jacob Cherian & M.A. Gulzar & Phung Anh Thu & Tehmina Khan & Nguyen Vinh Khuong, 2018. "Does Corporate Social Responsibility Mediate the Relation between Boardroom Gender Diversity and Firm Performance of Chinese Listed Companies?," Sustainability, MDPI, vol. 10(10), pages 1-18, October.
    20. Masayuki MORIKAWA, 2014. "What Types of Company Have Female and Foreign Directors?," Discussion papers 14032, Research Institute of Economy, Trade and Industry (RIETI).

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:asiaec:v:39:y:2025:i:4:p:498-528. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: https://edirc.repec.org/data/eaeaaea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.