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Female directors, key committees, and firm performance

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  • Colin Green
  • Swarnodeep Homroy

Abstract

There is pressure to increase female representation on corporate boards. A number of studies have found no, or in some cases a negative, effect of female representation on boards and firm performance. We demonstrate robust positive and economically meaningful effects on firm performance of female representation on European boards. Moreover, while previous work has considered female representation broadly, we focus on membership of committees involved explicitly in firm governance. We demonstrate marked, larger, e¤ects on performance of having female representation on these committees. Finally, we reconcile this evidence with prior US and UK evidence and demonstrate a positive performance impact of female committee memberships. Our evidence is supportive of the expansion of female involvement in corporate governance from a financial performance perspective.

Suggested Citation

  • Colin Green & Swarnodeep Homroy, 2015. "Female directors, key committees, and firm performance," Working Papers 95922258, Lancaster University Management School, Economics Department.
    • Handle: RePEc:lan:wpaper:95922258
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    File URL: http://www.lancaster.ac.uk/media/lancaster-university/content-assets/documents/lums/economics/working-papers/LancasterWP2015_023.pdf
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    References listed on IDEAS

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    More about this item

    Keywords

    Board of directors; Female director; Diversity; Performance;
    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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