Final published version
Research output: Contribution to Journal/Magazine › Journal article › peer-review
Research output: Contribution to Journal/Magazine › Journal article › peer-review
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TY - JOUR
T1 - Female directors, board committees and firm performance
AU - Green, Colin P.
AU - Homroy, Swarnodeep
PY - 2018/2
Y1 - 2018/2
N2 - A number of studies have found little economic impact of board gender diversity on firm performance. We return to this issue in the context of large European firms. Our contribution is twofold. First, using information on the gender of CEOs children as a source of exogenous variation in female director appointments, we demonstrate a robust positive effect of female board representation on firm performance. Second, while previous work has considered female representation broadly, we focus on membership of board committees as a proxy for active involvement in corporate governance. We demonstrate economically meaningful positive effects on performance of female representation on board committees. Our evidence is supportive of an economic rationale for increased female representation on corporate boards.
AB - A number of studies have found little economic impact of board gender diversity on firm performance. We return to this issue in the context of large European firms. Our contribution is twofold. First, using information on the gender of CEOs children as a source of exogenous variation in female director appointments, we demonstrate a robust positive effect of female board representation on firm performance. Second, while previous work has considered female representation broadly, we focus on membership of board committees as a proxy for active involvement in corporate governance. We demonstrate economically meaningful positive effects on performance of female representation on board committees. Our evidence is supportive of an economic rationale for increased female representation on corporate boards.
KW - Gender
KW - Diversity
KW - Firm performance
KW - Board committees
U2 - 10.1016/j.euroecorev.2017.12.003
DO - 10.1016/j.euroecorev.2017.12.003
M3 - Journal article
VL - 102
SP - 19
EP - 38
JO - European Economic Review
JF - European Economic Review
SN - 0014-2921
ER -