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Gender Diversity in Boardrooms and on Supervisory Boards and its Relation to Stock Prices

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  • Marie Ligocká

Abstract

Despite the fact that the labour force participation rate of women declined in the company bodies of publicly traded companies in 2017, there has been a growing representation of women in these positions in Europe. The representation of women is important due to the use of available human resources, the improvement in the quality of human capital and the positive effect on economic development. Gender imbalance in the management and supervisory bodies of publicly traded companies can be associated with lower management effectiveness, a decision-making quality that can influence the business situation of companies, which could be related to stock price development. Thus, this paper is focuses on examining the relationship between gender diversity in boardrooms and on supervisory boards and the stock prices of selected European publicly traded companies. The results show that there are dissimilar relations between stock prices and gender variables among the sectors and countries analysed. JEL Codes - C58, G34, J16, O52

Suggested Citation

  • Marie Ligocká, 2020. "Gender Diversity in Boardrooms and on Supervisory Boards and its Relation to Stock Prices," Scientific Annals of Economics and Business (continues Analele Stiintifice), Alexandru Ioan Cuza University, Faculty of Economics and Business Administration, vol. 67(2), pages 177-192, June.
    • Handle: RePEc:aic:saebjn:v:67:y:2020:i:2:p:177-192:n:10
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    More about this item

    Keywords

    Gender equality; Stock prices; Boardroom; Supervisory board; GMM method;
    All these keywords.

    JEL classification:

    • C58 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Financial Econometrics
    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance
    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination
    • O52 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Europe

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