Women in top management and agency costs
This study investigates gender diversity among the top managers of Fortune 500 firms and its effect on agency costs. The study finds that firms with a greater percentage of female officers present lower agency costs but that the negative relation is not robust when considering the endogeneity of diversity. The study also finds that external governance influences the relationship. Although increasing diversity does not reduce agency costs for all firms, the evidence shows that diversity is significantly negatively related to agency costs in firms in less competitive markets. The results suggest that increasing diversity in management can have beneficial effects for firms where strong external governance is absent.
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"Do Women in Top Management Affect Firm Performance? A Panel Study of 2500 Danish Firms,"
CIE Discussion Papers
2005-03, University of Copenhagen. Department of Economics. Centre for Industrial Economics.
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