Gender Diversity in Boardrooms and on Supervisory Boards and its Relation to Stock Prices
DOI:
https://doi.org/10.47743/saeb-2020-0010Keywords:
Gender equality, Stock prices, Boardroom, Supervisory board, GMM methodAbstract
Despite the fact that the labour force participation rate of women declined in the company bodies of publicly traded companies in 2017, there has been a growing representation of women in these positions in Europe. The representation of women is important due to the use of available human resources, the improvement in the quality of human capital and the positive effect on economic development. Gender imbalance in the management and supervisory bodies of publicly traded companies can be associated with lower management effectiveness, a decision-making quality that can influence the business situation of companies, which could be related to stock price development. Thus, this paper is focuses on examining the relationship between gender diversity in boardrooms and on supervisory boards and the stock prices of selected European publicly traded companies. The results show that there are dissimilar relations between stock prices and gender variables among the sectors and countries analysed.
JEL Codes - C58, G34, J16, O52
References
Adams, R. B., and Ferreira, D., 2009. Women in the boardroom and their impact on governance and performance. Journal of Financial Economics, 94(2), 291-309. http://dx.doi.org/10.1016/j.jfineco.2008.10.007
Ahern, K. R., and Dittmar, A. K., 2012. The Changing of the Boards: The Impact on Firm Valuation of Mandated Female Board Representation. The Quarterly Journal of Economics, 127(1), 137-197. http://dx.doi.org/DOI:10.1093/qje/qjr049
Barbieri, L., 2006. Panel Unit Root Tests: A Review. Working paper Serie Rossa: Economia – Quaderno, 43. https://www.researchgate.net/publication/252756953_Panel_Unit_Root_Tests_A_Review.
Campbell, K., and Minguez-Vera, A., 2008. Gender Diversity in the Boardroom and Firm Financial Performance. Journal of Business Ethics, 83(3), 435-451. http://dx.doi.org/DOI:10.1007/s10551-007-9630-y
Catalyst, 2019. Women in Management: Quick Take. from https://www.catalyst.org/research/women-in-management/
Cipra, T., 2008. Financni ekonometrie (1st ed. ed.). Prague: Ekopress.
Dezso, C. L., and Ross, D. G., 2012. Does Female Representation in Top Management Improve Firm Performance? A Panel Data Investigation. Strategic Management Journal, 33(9), 1072-1089. http://dx.doi.org/DOI:10.1002/smj.1955
Dobbin, F., and Jung, J., 2011. Corporate Board Gender Diversity and Stock Performance: The Competence Gap or Institutional Investor Bias? North Carolina Law Review, 89(3), 809-838.
European Institute for Gender Equality, 2019a. Gender Equality Index. from https://eige.europa.eu/gender-equality-index/2015/countries-comparison
European Institute for Gender Equality, 2019b. Gender Equality Index Publications. from https://eige.europa.eu/gender-equality-index/publications
European Institute for Gender Equality, 2019c. Gender Statistics Database. from https://eige.europa.eu/genderstatistics/dgs/indicator/wmidm_bus_bus__wmid_comp_compbm/bar
Gul, F. A., Srinidhi, B., and Ng, A. C., 2011. Does Board Gender Diversity Improve the Informativeness of Stock Prices? Journal of Accounting and Economics, 51(3), 314-338. http://dx.doi.org/DOI:10.1016/j.jacceco.2011.01.005
Hall, A. R., 2005. Generalized Method of Moments (1st ed. ed.). New York: Oxford University Press.
Haslam, S. A., Ryan, M. K., Kulich, C., Trojanowski, G., and Atkins, C., 2010. Investing with Prejudice: The Relationship Between Women's Presence on Company Boards and Objective and Subjective Measures of Company Performance. British Journal of Management, 21(2), 484-497. http://dx.doi.org/DOI:10.1111/j.1467-8551.2009.00670.x
Levin, A., Lin, C. H. F., and Chu, C. H. S. J., 2002. Unit Root Tests in Panel Data: Asymptotic and Finite-Sample Properties. Journal of Econometrics, 108(1), 1-24. http://dx.doi.org/DOI:10.1016/S0304-4076(01)00098-7
Pesaran, M. H., 2015. Time Series and Panel Data Econometrics (1st ed. ed.). Oxford: Oxford University Press. http://dx.doi.org/DOI:10.1093/acprof:oso/9780198736912.001.0001
Ramirez, S. A., 2000. Diversity and the Boardroom. Stanford Journal of Law, Business & Finance, 6(1), 85-134.
Smith, N., Smith, V., and Verner, M., 2005. Do Women in Top Management Affect Firm Performance? A Panel Study of 2 500 Danish Firms. International Journal of Productivity and Performance Management, 55(7), 569-593. http://dx.doi.org/DOI:10.1108/17410400610702160
The World Bank, 2019. World Bank Open Data. from https://data.worldbank.org/indicator/SL.TLF.CACT.FE.ZS?end=2017&locations=AT-DE-PL&name_desc=false&start=2005
Toudas, K., Bellas, A., and Makridis, G., 2007. Corporate Governance and its Effect on Firm Value and Stock Returns of Listed Companies on the Athens Stock Exchange. European Research Studies Journal, 17(2), 58-80.
Wolfers, J., 2006. Diagnosing Discrimination: Stock Returns and CEO Gender. Journal of the European Economic Association, 4(2-3), 531-541. http://dx.doi.org/DOI:10.1162/jeea.2006.4.2-3.531
Zdeněk, D., and et al., 2014. Ženy a management, Kreativita – inovace – etika – kvalitativní management. Brno: BizBooks.
Zivot, E., and Wang, J., 2006. Modeling Financial Time Series with S-PLUS (2nd ed. ed.). New York: Springer.
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2020 SCIENTIFIC ANNALS OF ECONOMICS AND BUSINESS
This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.
All accepted papers are published on an Open Access basis.
The Open Access License is based on the Creative Commons license.
The non-commercial use of the article will be governed by the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License as currently displayed on https://creativecommons.org/licenses/by-nc-nd/4.0
Under the Creative Commons Attribution-NonCommercial-NoDerivatives license, the author(s) and users are free to share (copy, distribute and transmit the contribution) under the following conditions:
1. they must attribute the contribution in the manner specified by the author or licensor,
2. they may not use this contribution for commercial purposes,
3. they may not alter, transform, or build upon this work.
This work is licenced under a 
