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Does board gender diversity affect firm performance Evidence from the French SMEs

Author

Listed:
  • Riadh Manita

    (NEOMA - Neoma Business School)

  • Najoua Elommal

    (EMLV - École de management Léonard de Vinci)

  • Rey Dang

    (ISTEC - Institut supérieur des Sciences, Techniques et Economie Commerciales - ISTEC)

  • N.A. L
  • Hocine Houanti

    (Métis Lab EM Normandie - EM Normandie - École de Management de Normandie = EM Normandie Business School)

Abstract

In the contemporary business world, the diversity of boards in terms of gender has been examined by many researchers and those responsible for public policy. Although many studies have assessed the correlation between how a company performs financially and the gender diversity of its board, this research has tended to focus on larger companies and the results have been inconclusive. This paper will re-examine key elements of the existing discourse by focusing on a selection of small and medium-sized enterprises (SMEs) in France between 2009 and 2014. Panel data and the two-stage least squares (2SLS) methodology was employed to assert empirical control over both the significance and direction of the correlation between the financial performance of an organisation and the diversity of its board. Unlike the literature, in our study of French SMEs, we found no notable correlation between how a company performs financially and how diverse its board is in terms of gender. This paper will examine the benefits firms can access by ensuring the gender diversity of their respective boards.

Suggested Citation

  • Riadh Manita & Najoua Elommal & Rey Dang & N.A. L & Hocine Houanti, 2020. "Does board gender diversity affect firm performance Evidence from the French SMEs," Post-Print hal-05470061, HAL.
    • Handle: RePEc:hal:journl:hal-05470061
    DOI: 10.1504/IJESB.2020.111580
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