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Board gender diversity and firm performance: Empirical evidence from Hong Kong, South Korea, Malaysia and Singapore

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  • Low, Daniel C.M.
  • Roberts, Helen
  • Whiting, Rosalind H.

Abstract

Utilising a sample of Asian firms from Hong Kong, South Korea, Malaysia and Singapore, this study shows that increasing numbers of female directors on the board have a positive effect on firm performance, as measured by return on equity (ROE). However, the positive effects of gender diversity appear to be diminished in countries with higher female economic participation and empowerment. This may be due to tokenism and suggests that forcing female director appointment or mandating gender quotas can reduce firm performance in countries with strong cultural resistance.

Suggested Citation

  • Low, Daniel C.M. & Roberts, Helen & Whiting, Rosalind H., 2015. "Board gender diversity and firm performance: Empirical evidence from Hong Kong, South Korea, Malaysia and Singapore," Pacific-Basin Finance Journal, Elsevier, vol. 35(PA), pages 381-401.
    • Handle: RePEc:eee:pacfin:v:35:y:2015:i:pa:p:381-401
    DOI: 10.1016/j.pacfin.2015.02.008
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    More about this item

    Keywords

    Board of directors; Gender; Diversity; Asia;
    All these keywords.

    JEL classification:

    • G30 - Financial Economics - - Corporate Finance and Governance - - - General
    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance
    • G38 - Financial Economics - - Corporate Finance and Governance - - - Government Policy and Regulation
    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination

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