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Women’s Leadership and Corporate Performance

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  • Qian, Meijun

    (Australian National University)

Abstract

This paper examines the gender diversity in corporate boardrooms in Asia and the Pacific and how the diversity affects corporate performance. We find that boardroom gender diversity is low in Asia with 7.5% female representation on average in 2012, but showing a 1.8% improvement in 2013. The appointment of female directors and a gender-diverse boardroom are on average positively associated with a firm’s subsequent performance, but with large cross-country and cross-measurement differences. Firm performance is the highest when there are two females on the board. Using two-stage analyses, we find that (i) a firm’s past performance does not predict its choice to add female directors; (ii) cross-country differences in female corporate leadership respond to its economic demand and supply as measured by gender equality in college education, labor participation, wages, and infant survival; and (iii) female representation on the board, when determined by these economic factors, is a significant predictor of a firm’s future performance.

Suggested Citation

  • Qian, Meijun, 2016. "Women’s Leadership and Corporate Performance," ADB Economics Working Paper Series 472, Asian Development Bank.
  • Handle: RePEc:ris:adbewp:0472
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    References listed on IDEAS

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    6. Levi, Maurice & Li, Kai & Zhang, Feng, 2014. "Director gender and mergers and acquisitions," Journal of Corporate Finance, Elsevier, vol. 28(C), pages 185-200.
    7. Kevin Campbell & Antonio Minguez Vera, 2010. "Female board appointments and firm valuation: short and long-term effects," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 14(1), pages 37-59, February.
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    Cited by:

    1. Gaitán, Sandra & Herrera-Echeverri, Hernán & Pablo, Eduardo, 2018. "How corporate governance affects productivity in civil-law business environments: Evidence from Latin America," Global Finance Journal, Elsevier, vol. 37(C), pages 173-185.

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    More about this item

    Keywords

    corporate performance; development equality; director choices; female leadership;
    All these keywords.

    JEL classification:

    • G38 - Financial Economics - - Corporate Finance and Governance - - - Government Policy and Regulation
    • J71 - Labor and Demographic Economics - - Labor Discrimination - - - Hiring and Firing
    • O16 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance

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