Gender Allocation and Company Financial Performance: A Systematic Review

First published: October 28, 2021 https://doi.org/10.1111/ecaf.12487

Explanation

Several countries have mandated sexual quotas on corporate boards of directors.

This paper systematically reviews empirical studies that compare the profitability and financial performance of firms before and after the introduction of statutory quotas.

The search yielded 348 unique hits and retained nine studies with 20 effects.

Four were null, 11 negative, and five positive, the latter all from Italian and French companies. They conclude that the quotas of women on corporate boards primarily reduce firm performance and that several moderating factors need to be taken into account when assessing the causal effect of quotas on firm performance.