Submitted manuscript, 397 KB, PDF document
Research output: Working paper
Research output: Working paper
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TY - UNPB
T1 - Female directors, key committees, and firm performance
AU - Green, Colin
AU - Homroy, Swarnodeep
PY - 2015/10
Y1 - 2015/10
N2 - 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.
AB - 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.
KW - Board of directors
KW - Female director
KW - Diversity
KW - Performance
M3 - Working paper
T3 - Economics working paper series
BT - Female directors, key committees, and firm performance
PB - Lancaster University, Department of Economics
CY - Lancaster
ER -