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Board Gender Diversity and Firm Performance: An Analysis of the Causal Relationship in Spanish Listed Companies

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  • María-Jose García-López

    (Financial Economy and Accounting Department, Universidad Rey Juan Carlos, 28032 Madrid, Spain)

  • Maria Rosario Pacheco-Olivares

    (Financial Economy and Accounting Department, Universidad Rey Juan Carlos, 28032 Madrid, Spain)

  • Hamid Hamoudi

    (Financial Economy and Accounting Department, Universidad Rey Juan Carlos, 28032 Madrid, Spain)

Abstract

Applying a mixed theoretical approach, this paper addresses the causal relationship between the presence of women on steering committees (SC) and in senior management positions and the firm’s stock return, measured through the price–earnings ratio (P/E). To do so, we disaggregate the composition of the boards of 27 IBEX 35 companies over the period 2018–2021 by gender and type of female director and analyze the relationship between the number and proportion of women on the SC, their distribution by category, and the P/E. The sample contains a total of 108 observations, and its structure follows a panel data methodology. Validation of the working hypotheses was carried out using Poisson logistic regression. The results indicate a positive and significant relationship between stock returns and the percentage of women on the SC. The results also indicate that stock returns are not significantly affected by the category distribution of female directors.

Suggested Citation

  • María-Jose García-López & Maria Rosario Pacheco-Olivares & Hamid Hamoudi, 2024. "Board Gender Diversity and Firm Performance: An Analysis of the Causal Relationship in Spanish Listed Companies," Administrative Sciences, MDPI, vol. 14(1), pages 1-21, January.
    • Handle: RePEc:gam:jadmsc:v:14:y:2024:i:1:p:12-:d:1312541
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    References listed on IDEAS

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    1. Shamsul N. Abdullah & Ku Nor Izah Ku Ismail & Lilac Nachum, 2016. "Does having women on boards create value? The impact of societal perceptions and corporate governance in emerging markets," Strategic Management Journal, Wiley Blackwell, vol. 37(3), pages 466-476, March.
    2. Cristian L. Dezsö & David Gaddis Ross, 2012. "Does female representation in top management improve firm performance? A panel data investigation," Strategic Management Journal, Wiley Blackwell, vol. 33(9), pages 1072-1089, September.
    3. Val Singh & Susan Vinnicombe, 2004. "Why So Few Women Directors in Top UK Boardrooms? Evidence and Theoretical Explanations," Corporate Governance: An International Review, Wiley Blackwell, vol. 12(4), pages 479-488, October.
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