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The Gender Composition of Corporate Boards and Firm Performance: Evidence from Russia

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  • Garanina, Tatiana

    (University of Vaasa)

  • Muravyev, Alexander

    (Higher School of Economics, St. Petersburg Branch)

Abstract

This paper studies economic effects of the gender composition of corporate boards, employing a new and unique longitudinal dataset of virtually all Russian companies whose shares were traded on the national stock market between 1998 and 2014. Using multiple identification approaches, alternative measures of gender diversity, and several performance indicators, we find some evidence that companies with gender-diverse boards have higher market values and better profitability. These effects are particularly pronounced when firms appoint several women directors, which is consistent with the critical mass theory. The effects appear to be stronger in bad economic times or for firms experiencing economic difficulties. Overall, the Russian data lend some support to "the business case" for more women on corporate boards.

Suggested Citation

  • Garanina, Tatiana & Muravyev, Alexander, 2019. "The Gender Composition of Corporate Boards and Firm Performance: Evidence from Russia," IZA Discussion Papers 12357, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp12357
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    2. Hasan, Iftekhar & Jackowicz, Krzysztof & Kowalewski, Oskar & Kozłowski, Łukasz, 2023. "Cultural values of parent bank board members and lending by foreign subsidiaries: The moderating role of personal traits," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 83(C).
    3. Aolin Leng & Fuli Kang, 2022. "Impact of two-child policy on female employment and corporate performance: Empirical evidence from Chinese listed companies from 2010 to 2020," Palgrave Communications, Palgrave Macmillan, vol. 9(1), pages 1-13, December.
    4. Melsa Ararat & Borhan Sayedy, 2019. "Gender and Climate Change Disclosure: An Interdimensional Policy Approach," Sustainability, MDPI, vol. 11(24), pages 1-19, December.
    5. Tchapo Gbandi & Ayira Korem & Kossiwa Zinsou-Klassou, 2024. "Save women entrepreneurs: gender, cultural context, and micro-commerce performance in Togo," Small Business Economics, Springer, vol. 62(3), pages 1099-1133, March.
    6. Abdelrahman J. K. Alfar & Nariman Abuatwan & Mohamed Elheddad & Mohammad Qaki, 2023. "The Internal Determinants of Gender Diversity and Its Non-Linear Impact on Firms’ Performance: Evidence from the Listed Companies in Palestine Exchange," JRFM, MDPI, vol. 16(1), pages 1-19, January.
    7. Jain, Ritika, 2022. "Gender diversity, gender norms and firm performance: Evidence from India," Economic Systems, Elsevier, vol. 46(4).

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    More about this item

    Keywords

    firm performance; gender diversity; board of directors; Russia;
    All these keywords.

    JEL classification:

    • 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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