Board gender diversity and firms' financial resilience during the Covid-19 pandemic

Abstract

This paper examines the impact of boardroom gender diversity on firms' financial resilience during the COVID-19 pandemic. On the positive side, gender diversity may bring diverse perspectives to the boardroom, but on the negative side, it can also lead to conflicts and slower decision-making in crises. Using survival analysis on a sample of 5,179 global firms, we find that high gender diversity prolongs the recovery time of firms' share prices after the shock, indicating lower resilience. This effect is observed in countries with female directorship quotas, strong governance, and lower GDP per capita.