Female Board Representation and Capital Markets : International Evidence

Title data

Loy, Thomas ; Rupertus, Hendrik:
Female Board Representation and Capital Markets : International Evidence.
2016
Event: 78. Jahrestagung des Verbandes der Hochschullehrer für Betriebswirtschaft , 18.-20.05.2016 , München.
(Conference item: Conference , Paper )

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There are considerable cross-country discrepancies in female board representation. We examine institutional factors associated with female board participation. Moreover, we analyze whether it has effects on investors’ perception of the firm. Board appointments are endogenous choices. We explicitly address endogeneity by employing an Instrumental Variable approach on the country-level and Propensity Score Matching on the firm-level. Our results indicate that a societal climate of gender equality contributes to increased female board participation, and that boards without women do not result in worse (or better) stock performance. Hence, the gender gap is an ethical issue and should be closed because of basic fairness.