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Women and Boards


RESEARCH - In recent years, interest in gender diversity and the representation of females in leadership positions has evidenced a steep increase. Many scientific studies have investigated the relationship between female representation on corporate boards and firm financial performance, but, so far, the results are contradictory.


The representation of females in companies and advancing gender equality and female representation in corporate governance has increasingly become the focus of societal and political debates in various countries [1].


Despite extensive efforts to increase women’s presence on corporate boards, men still dominate the corporate world. The financial effects of increased female representation on corporate boards may crucially determine if, and how, regulations to promote females to higher positions are implemented, because pursuing financial success is an innate characteristic of every company.


The SCEBM undertook a review of the research literature about Female Representation on Corporate Boards and their influence on Firm Financial Performance. The review process resulted in this Critically Apprised Topic (CAT) report.


To reconcile the conflicting results, we review the results from 3 meta analyses and examine whether these results points in a similar direction. The measure of performance were accounting measures, market measures and corporate social responsibility (CSR) The review finds that female board representation only has a very small effect on firm performance in relation to accounting measures and market measures but a small positive correlation to CSP measure.


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