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Female directors, board committees and firm performance

Author

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  • Green, Colin P.
  • Homroy, Swarnodeep

Abstract

A number of studies have found little economic impact of board gender diversity on firm performance. We return to this issue in the context of large European firms. Our contribution is twofold. First, using information on the gender of CEOs children as a source of exogenous variation in female director appointments, we demonstrate a robust positive effect of female board representation on firm performance. Second, while previous work has considered female representation broadly, we focus on membership of board committees as a proxy for active involvement in corporate governance. We demonstrate economically meaningful positive effects on performance of female representation on board committees. Our evidence is supportive of an economic rationale for increased female representation on corporate boards.

Suggested Citation

  • Green, Colin P. & Homroy, Swarnodeep, 2018. "Female directors, board committees and firm performance," European Economic Review, Elsevier, vol. 102(C), pages 19-38.
  • Handle: RePEc:eee:eecrev:v:102:y:2018:i:c:p:19-38
    DOI: 10.1016/j.euroecorev.2017.12.003
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    References listed on IDEAS

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    1. repec:eee:jbfina:v:90:y:2018:i:c:p:50-63 is not listed on IDEAS
    2. repec:gam:jsusta:v:10:y:2018:i:5:p:1644-:d:147973 is not listed on IDEAS
    3. Owen, Ann L. & Temesvary, Judit, 2018. "The performance effects of gender diversity on bank boards," Journal of Banking & Finance, Elsevier, vol. 90(C), pages 50-63.

    More about this item

    Keywords

    Gender; Diversity; Firm performance; Board committees;

    JEL classification:

    • G30 - Financial Economics - - Corporate Finance and Governance - - - General
    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance
    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination

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