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Women on board: Does boardroom gender diversity affect firm risk?

Author

Listed:
  • Sila, Vathunyoo
  • Gonzalez, Angelica
  • Hagendorff, Jens

Abstract

We investigate the relationship between boardroom gender diversity and firm risk. To identify a causal effect of gender on risk, we use a dynamic model that controls for reverse causality and for gender and risk being influenced by unobservable firm factors. We find no evidence that female boardroom representation influences equity risk. We also show that findings of a negative relationship between the two variables are spurious and driven by unobserved between-firm heterogeneous factors.

Suggested Citation

  • Sila, Vathunyoo & Gonzalez, Angelica & Hagendorff, Jens, 2016. "Women on board: Does boardroom gender diversity affect firm risk?," Journal of Corporate Finance, Elsevier, vol. 36(C), pages 26-53.
    • Handle: RePEc:eee:corfin:v:36:y:2016:i:c:p:26-53
    DOI: 10.1016/j.jcorpfin.2015.10.003
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    More about this item

    Keywords

    Board of directors; Gender diversity; Equity risk; Endogeneity;
    All these keywords.

    JEL classification:

    • G10 - Financial Economics - - General Financial Markets - - - General (includes Measurement and Data)
    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance

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