Abstract
This study explores the relationship between board diversity and firm performance for a sample of companies listed in Italy, France, Germany, Spain and United Kingdom. We consider different dimensions of diversity, both demographic (gender, age and nationality diversity) and cognitive or non-observable (diversity in directors’ experience and education). We focus on diversity of both the entire board and its executive members only. We don’t find a significant relationship between firms’ performance and board diversity. However, when considering executive directors alone, results show that firms where female and foreign directors are more represented have better performance than others. As for cognitive diversity, results indicate that performance increases when directors have a longer tenure.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
