Women director interlocks and firm performance: Evidence from India

This paper empirically examines the impact of network ties of women directors on firm value and sheds light on the unaddressed issue of whether such ties can serve as one of the channels through which women on board affect firm performance. In doing so, the study also seeks to provide a gendered perspective of the performance effects of interlocking directorates on which empirical evidence is scant. Using a panel of listed firms in India for the period 2010-2020 covering periods of pre and post institution of gender quota on company boards, our study finds that women director connectedness, as captured in select network centrality measures, has a positive and robust effect on firm value. We further find evidence that the positive relationship with firm value is driven by the information advantage and influence of women director networks. Finally, based on a director level analysis, we find that more connected women directors, including those who are independent, contribute to corporate governance through higher meeting attendance, and through their memberships in important committees. The findings of the paper highlight the unique role of women director interlocks in firm governance and performance.