Does board gender diversity have a financial impact? Evidence using stock portfolio performance

Chapple, Larelle and Humphrey, Jacquelyn E. (2014) Does board gender diversity have a financial impact? Evidence using stock portfolio performance. Journal of Business Ethics, 122 4: 709-723. doi:10.1007/s10551-013-1785-0


Author Chapple, Larelle
Humphrey, Jacquelyn E.
Title Does board gender diversity have a financial impact? Evidence using stock portfolio performance
Journal name Journal of Business Ethics   Check publisher's open access policy
ISSN 0167-4544
1573-0697
Publication date 2014-07
Year available 2013
Sub-type Article (original research)
DOI 10.1007/s10551-013-1785-0
Open Access Status
Volume 122
Issue 4
Start page 709
End page 723
Total pages 15
Place of publication Dordrecht, Netherlands
Publisher Springer
Collection year 2015
Language eng
Abstract There is growing regulatory pressure on firms worldwide to address the under-representation of women in senior positions. Regulators have taken a variety of approaches to the issue. We investigate a jurisdiction that has issued recommendations and disclosure requirements, rather than implementing quotas. Much of the rhetoric surrounding gender diversity centres on whether diversity has a financial impact. In this paper we take an aggregate (market-level) approach and compare the performance of portfolios of firms with gender diverse boards to those without. We also investigate whether having multiple women on the board is linked to performance, and if there is a within-industry effect. Overall, we do not find evidence of an association between diversity and performance. We find some weak evidence of a negative correlation between having multiple women on the board and performance, but that in some industries diversity is positively correlated with performance.
Keyword Gender diversity
Corporate governance
Financial performance
Q-Index Code C1
Q-Index Status Provisional Code
Institutional Status Non-UQ
Additional Notes Published online ahead of print: 9 July 2013.

Document type: Journal Article
Sub-type: Article (original research)
Collections: Non HERDC
UQ Business School Publications
 
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Citation counts: TR Web of Science Citation Count  Cited 9 times in Thomson Reuters Web of Science Article | Citations
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Created: Fri, 16 May 2014, 11:50:56 EST by Ms Jacquelyn Humphrey on behalf of UQ Business School