Board diversity and corporate innovation: New evidence from the Canadian context

Abstract

Previous research on board diversity and firms’ innovation reported mixing results depending on the country studied. This paper is the first to investigate the association between three dimensions of board diversity: gender, education and tenure, and the innovation output of Canadian firms. We find that firms that have more than twenty-five percent of the board members as women are more innovative and corporate risk-taking is a mechanism for this effect. Board education diversity has a positive effect on innovation; however, we find no association between firms’ innovation and the experience diversity on the board or in the company.