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Breaking barriers: assessing the influence of female directors on financial performance beyond the boardroom

Author

Listed:
  • Josep Garcia-Blandon

    (Universitat Ramon Llull)

  • Josep Maria Argilés-Bosch

    (Universitat de Barcelona)

  • Diego Ravenda

    (TBS Business School)

  • David Castillo-Merino

    (Universitat Ramon Llull)

Abstract

The persistent under representation of women in executive committees continues to challenge gender equality in corporate leadership. Legislative interventions promoting gender quotas have led to improvements in boardroom gender diversity but have fallen short in addressing executive committee imbalances. This study investigates the impact of women’s inclusion in executive committees on financial performance. Spanning large European corporations from 2015 to 2022, a difference-in-differences approach coupled with fixed effects estimations evaluates whether firms that incorporated women into these committees exhibited greater performance improvements compared to those maintaining all-male executive compositions. Contrary to expectations, the findings reveal a lack of positive influence on financial performance metrics, showcasing negative effects on accounting-based indicators. Notably, higher female representation in the executive committee, beyond critical mass, fails to alter financial performance. Furthermore, the study dismisses the notion that the level of gender equality in a firm’s country of origin moderates this relationship. The implications of the findings are discussed.

Suggested Citation

  • Josep Garcia-Blandon & Josep Maria Argilés-Bosch & Diego Ravenda & David Castillo-Merino, 2025. "Breaking barriers: assessing the influence of female directors on financial performance beyond the boardroom," Review of Managerial Science, Springer, vol. 19(10), pages 3111-3141, October.
    • Handle: RePEc:spr:rvmgts:v:19:y:2025:i:10:d:10.1007_s11846-025-00844-7
    DOI: 10.1007/s11846-025-00844-7
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    JEL classification:

    • G30 - Financial Economics - - Corporate Finance and Governance - - - General
    • M40 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - General

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