Board Gender Diversity, Corporate Innovation, and Firm Value: International Evidence

Abstract

Using a novel database of firm patents and board characteristics across 45 countries, we examine both within- and cross-country determinants of board gender diversity and its relation to corporate innovation. Boards are more likely to include women in countries with narrower gender gaps, higher female labor market participation, and less masculine cultures. Firms with gender diverse boards have more patents, more novel patents, and higher innovative efficiency. Further analyses suggest that gender diverse boards are associated with more failure-tolerant and long-term CEO incentives, more innovative corporate cultures, and more diverse inventors, characteristics that are conducive to better innovative performance.