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Does Gender Diversity in the Boardroom Improve Firm Performance?

Author

Listed:
  • Daunfeldt, Sven-Olov

    (HUI Research)

  • Rudholm, Niklas

    (HUI Research)

Abstract

The purpose of this paper is to investigate whether increasing gender diversity on the board of directors improves firm perfomance, using a data-set of 20,487 limited companies in Sweden during 1997-2005. We use a random-effects random-coefficients model to account for unobserved firm heterogenity. More gender diversity in the boardroom is found to have a negative impact on returns on total assets after two years. Thus, legal requirements to increase gender diversity on the board of directors might carry a cost in lower profitability.

Suggested Citation

  • Daunfeldt, Sven-Olov & Rudholm, Niklas, 2012. "Does Gender Diversity in the Boardroom Improve Firm Performance?," HUI Working Papers 60, HUI Research.
    • Handle: RePEc:hhs:huiwps:0060
    as

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    References listed on IDEAS

    as
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    Cited by:

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    2. Adnan, Wifag & Arin, K. Peren & Charness, Gary & Lacomba, Juan A. & Lagos, Francisco, 2022. "Which social categories matter to people: An experiment," Journal of Economic Behavior & Organization, Elsevier, vol. 193(C), pages 125-145.
    3. Mareva Sabatier, 2015. "A women's boom in the boardroom: effects on performance?," Applied Economics, Taylor & Francis Journals, vol. 47(26), pages 2717-2727, June.
    4. Maryia Akulava, 2015. "Gender and Innovativeness of the Enterprise: the Case of Transition Countries," BEROC Working Paper Series 31, Belarusian Economic Research and Outreach Center (BEROC).
    5. Rajesh Raut & Amruta Deshpande & Kirti Gupta & Natashaa Kaul & Nivedita Ekbote, 2023. "Status of Women in Corporate Governance in the Private Sector Companies in India," Indian Journal of Corporate Governance, , vol. 16(1), pages 94-107, June.
    6. Irean Yap Lee-Kuen & Chan Sok-Gee & Rozaimah Zainudin, 2017. "Gender Diversity and Firms’ Financial Performance in Malaysia," Asian Academy of Management Journal of Accounting and Finance (AAMJAF), Penerbit Universiti Sains Malaysia, vol. 13(1), pages 41-62.

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    More about this item

    Keywords

    board of directors; board diversity; corporate governance;
    All these keywords.

    JEL classification:

    • G30 - Financial Economics - - Corporate Finance and Governance - - - General
    • 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

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