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The Relationship between Profitability and the Participation of Women in the Board of Directors of Listed Companies in Mexico

Author

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  • María Luisa Saavedra García
  • María Elena Camarena Adame

Abstract

The objective of this work was to determine if there is a relation-ship between profitability and the participation of women in the Council of Administration (CA) in companies listed on the Mexican Stock Exchange (BMV). We worked with a sample of 37 companies with the participation of women in the CA and with 32 companies where there is no participation of women in the CA; indicators were calculated for profitability and financial leverage. The findings show that the performance of the com-panies with the participation of women in the CA is more often measured with the Return on Invested Capital, and that they have less financial leverage at these companies, thus proving women’s aversion to taking risks, a variable that is linked to profitability and which would also explain the lower yield shown by the other three indicators of profitability.

Suggested Citation

  • María Luisa Saavedra García & María Elena Camarena Adame, 2018. "The Relationship between Profitability and the Participation of Women in the Board of Directors of Listed Companies in Mexico," Revista Equidad y Desarrollo, Universidad de la Salle, issue 23, pages 33-55, July.
    • Handle: RePEc:col:000452:016466
    DOI: 10.19052/ed.4413
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    References listed on IDEAS

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    More about this item

    Keywords

    Gender; board of directors; profitability; leverage;
    All these keywords.

    JEL classification:

    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance

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