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Is Gender Diversity Profitable? Evidence from a Global Survey

Author

Listed:
  • Marcus Noland

    (Peterson Institute for International Economics)

  • Tyler Moran

    (Peterson Institute for International Economics)

  • Barbara Kotschwar

    (Peterson Institute for International Economics)

Abstract

Analysis of a global survey of 21,980 firms from 91 countries suggests that the presence of women in corporate leadership positions may improve firm performance. This correlation could reflect either the payoff to nondiscrimination or the fact that women increase a firm's skill diversity. Women's presence in corporate leadership is positively correlated with firm characteristics such as size as well as national characteristics such as girls' math scores, the absence of discriminatory attitudes toward female executives, and the availability of paternal leave. The results find no impact of board gender quotas on firm performance, but they suggest that the payoffs of policies that facilitate women rising through the corporate ranks more broadly could be significant.

Suggested Citation

  • Marcus Noland & Tyler Moran & Barbara Kotschwar, 2016. "Is Gender Diversity Profitable? Evidence from a Global Survey," Working Paper Series WP16-3, Peterson Institute for International Economics.
    • Handle: RePEc:iie:wpaper:wp16-3
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    References listed on IDEAS

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    Cited by:

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    3. Cristina Fenoy-Castaño & María J. Martínez-Romero & Rubén Martínez-Alonso, 2021. "Does the Female Presence in Corporate Governance Influence the Level of Indebtedness in Agri-Food Family Firms?," Agriculture, MDPI, vol. 11(11), pages 1-17, November.
    4. Sangeeta Mittal & Lavina, 2018. "Females’ Representation in the Boardroom and Their Impact on Financial Distress: An Evidence from Family Businesses in India," Indian Journal of Corporate Governance, , vol. 11(1), pages 35-44, June.
    5. Horbach, Jens & Jacob, Jojo, 2017. "The relevance of personal characteristics and gender diversity for (eco)-innovation activities at the firm-level : Results from a linked employer-employee database in Germany," IAB-Discussion Paper 201711, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    6. Gladys Merma-Molina & Mayra Urrea-Solano & Salvador Baena-Morales & Diego Gavilán-Martín, 2022. "The Satisfactions, Contributions, and Opportunities of Women Academics in the Framework of Sustainable Leadership: A Case Study," Sustainability, MDPI, vol. 14(14), pages 1-23, July.
    7. Frank ELBERS & Ana-Maria GRIGORE, 2018. "The Gender Gap: Past, Present and Perspectives," REVISTA DE MANAGEMENT COMPARAT INTERNATIONAL/REVIEW OF INTERNATIONAL COMPARATIVE MANAGEMENT, Faculty of Management, Academy of Economic Studies, Bucharest, Romania, vol. 19(5), pages 504-515, December.
    8. Tazeen Imran & Sara Khan & Nazia Saeed, 2018. "Phenomenological Study Of Gender Diversity At A Pakistani Organization," IBT Journal of Business Studies (JBS), Ilma University, Faculty of Management Science, vol. 14(2), pages 221-240.
    9. Jens Horbach & Jojo Jacob, 2018. "The relevance of personal characteristics and gender diversity for (eco‐)innovation activities at the firm‐level: Results from a linked employer–employee database in Germany," Business Strategy and the Environment, Wiley Blackwell, vol. 27(7), pages 924-934, November.
    10. So Ra Park & Jae Young Jang, 2021. "The Impact of ESG Management on Investment Decision: Institutional Investors’ Perceptions of Country-Specific ESG Criteria," IJFS, MDPI, vol. 9(3), pages 1-27, September.
    11. Walter Leal Filho & João Henrique Paulino Pires Eustachio & Adriana Cristina Ferreira Caldana & Markus Will & Amanda Lange Salvia & Izabela S. Rampasso & Rosley Anholon & Johannes Platje & Marina Kova, 2020. "Sustainability Leadership in Higher Education Institutions: An Overview of Challenges," Sustainability, MDPI, vol. 12(9), pages 1-19, May.
    12. Bipasha Baruah & Sandra Biskupski‐Mujanovic, 2021. "Navigating sticky floors and glass ceilings: Barriers and opportunities for women's employment in natural resources industries in Canada," Natural Resources Forum, Blackwell Publishing, vol. 45(2), pages 183-205, May.
    13. Breda, Thomas & Manning, Alan, 2016. "Diversity and social capital within the workplace:evidence from Britain," LSE Research Online Documents on Economics 69042, London School of Economics and Political Science, LSE Library.
    14. Collins E. Okafor & Nacasius U. Ujah & Eunho Cho & Winifred U. Okafor & Kevin L. James, 2023. "The Moderating Effect of a Golden Parachute on the Association between CSR and Firm Value: Does Gender-Driven Innovation Matter?," Sustainability, MDPI, vol. 15(6), pages 1-23, March.
    15. Breda, Thomas & Manning, Alan, 2016. "Diversity and social capital within the workplace:evidence from Britain," LSE Research Online Documents on Economics 69042, London School of Economics and Political Science, LSE Library.
    16. Francesco Campanella & Luana Serino, 2019. "Gender and Financial Constraints: An Empirical Investigation in Italy," International Journal of Financial Research, International Journal of Financial Research, Sciedu Press, vol. 10(2), pages 109-120, April.
    17. Tazeen Imran & Sara Khan & Nazia Saeed, 2018. "Phenomenological Study Of Gender Diversity At A Pakistani Organization," IBT Journal of Business Studies (JBS), Ilma University, Faculty of Management Science, vol. 14(1), pages 14-18.
    18. Baldacchino Peter.J & Mercieca & Marelaine & Tabone & Norbert & Ellul & Lauren Grima & Simon, 2022. "Board Gender Diversity in Maltese Equity-Listed and Large Public Sector Entities*," European Research Studies Journal, European Research Studies Journal, vol. 0(2), pages 555-586.
    19. Muhammad Atif & Md. Samsul Alam & Mohammed Hossain, 2020. "Firm sustainable investment: Are female directors greener?," Business Strategy and the Environment, Wiley Blackwell, vol. 29(8), pages 3449-3469, December.
    20. Felix Krause & Ho Fai Chan & Sascha L. Schmidt & Dominik Schreyer & Benno Torgler, 2021. "Who gets promoted to the top? Nuanced personality and psychosocial trait differences in highly structured work environments: Evidence from German professional female athletes," CREMA Working Paper Series 2021-16, Center for Research in Economics, Management and the Arts (CREMA).
    21. Maryia Akulava & Maribel Guerrero, 2023. "Entrepreneurial gendered ambidexterity in Belarusian SMEs," The Journal of Technology Transfer, Springer, vol. 48(6), pages 1919-1944, December.

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    More about this item

    Keywords

    Women; gender; diversity; boards of directors; CEOs;
    All these keywords.

    JEL classification:

    • G3 - Financial Economics - - Corporate Finance and Governance
    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination
    • M14 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Corporate Culture; Diversity; Social Responsibility

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