Gender diversity in the boardroom and shareholder wealth maximisation: Evidence from the United Kingdom

Abstract

In this research our aims to provide further evidence in the research area behind the effects of gender diversity in the board room. The empirical consensus is gender diversity increases a firm’s financial performance, and greater financial performance increases dividends and stock price. This research will provide evidence for the direct link between the two. We used FTSE 100 companies across the period 2011-2020. Data analysis shows that FTSE 100 found no relationship between gender and dividends, of 0.01% statistical significance, no relationship or statistical significance between gender and return, and a weak positive correlation of 0.015 statistical significance between gender and EPS. This therefore drawn to the conclusion of given its establishment, constituents of the FTSE 100 are subject to foreseeable levels of performance and profits. Given their size and lack of volatility at that sector of the stock market, that alteration of gender diversity at board level will result in a change in dividend or stock returns and is more likely to be due to more operational aspects of the companies.