The effect of gender diversity and quotas on the performance of banks: a comparison within Europe

Thumbnail Image
Issue Date
Journal Title
Journal ISSN
Volume Title
The role of women has changed significantly over the past decades. This led to a reduction of the household role and an increase in labour participation of women. However, the majority of management boards are still dominated by men. As a result, many European countries have introduced a gender quota law to stimulate, and sometimes force, companies to appoint women to their management boards. This raises the question what the effect of gender diversity on the performance of companies is and how quotas affect this relationship. This paper examines the effect of gender diversity and quotas in management boards on the performance of European banks. The goal of this research is to create more insight in the effect that a higher level of gender diversity has and if different quota policies influence this relationship. The main findings of this paper show that a higher level of gender diversity in management boards of European banks has a negative effect on performance. The analyses show that the presence of women is not necessarily negative, but that the effect becomes negative if this leads to an increase in gender diversity. The results show that quotas do not significantly affect this relationship.
Faculteit der Managementwetenschappen