Board diversity and firm performance

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2016-07-06
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en
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The European Commission strives for more women in the board of directors, because they could diversify the board of directors which positively influences firm performance. Their idea is to establish a binding gender quota to encourage the presence of women in the board of directors. In this research the relation between board diversity, based on the age, ethnicity, and educational level of women in the board of directors, and firm performance is examined. Besides that, the possible moderation effect of gender quotas on the relationship between board diversity and firm performance is examined. The sample consists of 468 firms from 12 European companies, operating in the trade and service industry. The results show a positive relationship between women in the board of directors and firm performance. The results show that there is no positive relationship between board diversity, based on the age, ethnicity, and educational level of women in the board of directors, and firm performance. The results also show no moderation effect of gender quotas on the expected relationships. This research contributes to the literature through a better understanding of the relationship between women in the board of directors, board diversity and firm performance, and by investigating the unexamined moderation effect of gender quotas.
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Faculteit der Managementwetenschappen
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