DP14942 Gender diversity in corporate boards: Evidence from quota-implied discontinuities
|Author(s):||Olga Kuzmina, Valentina Melentyeva|
|Publication Date:||June 2020|
|Keyword(s):||Gender diversity, Gender quota, Performance, women in boards|
|JEL(s):||D22, G32, J16|
|Programme Areas:||Labour Economics, Public Economics, Financial Economics, International Trade and Regional Economics|
|Link to this Page:||cepr.org/active/publications/discussion_papers/dp.php?dpno=14942|
We use data across European corporate boards to investigate the effects of quota-induced female representation, under minimal possible identification assumptions. We find that having more women in board causally increases Tobin's Q, despite some negative effects on operating performance and more likely employment downsizings. We interpret this evidence as firms scaling down inefficient operations. Our results highlight that gender quotas are not necessarily a costly way of promoting equality.