Abstract
This paper examines the advancement of literature on gender diversity on corporate boards (board gender diversity). We discuss important management theories cited in the literature and examine the ...
Highlights
Research on gender diversity on corporate boards is a topical subject that continues to attract considerable research attention
We review the evolution of literature on board gender diversity in areas related to corporate governance and corporate finance
We review the studies on the representation of gender diversity on corporate boards, the factors that affect board gender diversity and the impact it has on firm decisions and firm-specific issues
Summary
The primary function of a board of directors in a corporation is to monitor the actions of managers and to protect the interests of shareholders. There is an increased focus on the presence of women directors on corporate boards (board gender diversity) as evidence shows a positive impact of women directors on firm performance. We examine various aspects of board gender diversity. Review of studies shows that board gender diversity has a positive impact on firm performance and profitability but as the proportion of women increase, the benefits begin to diminish. We review studies to evaluate the decision of countries that have made it mandatory for firms to appoint women directors on the boards. We find that mandatory board gender diversity is not necessarily beneficial for firms
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