THE GENDER COMPOSITION OF THE BOARD AND FIRM PERFORMANCE. THE ROLE OF REGULATORY MEASURES

The gender composition of the board of directors can affect the quality of its monitoring role and thus the financial performance of the firm. The relationship between female representation and firms’ performance represents a crucial issue in the debate on the effects of board gender quotas. The evidence on this relationship is mixed. Many studies analyze whether female top executives and women on boards of directors have a significant effect on firm performance. Many governments have introduced regulations regarding the gender composition of the boards of directors of private firms in order to improve equality of opportunity. This study examines the relationship between management diversity and firm performance for the 180 companies listed during 2008 - 2014. No evidence suggests that regulatory measures, on average, improve firm performance.