The Role of Ownership and Gender on Firms' Performance: Evidence from Portugal

Abstract

This work aims to examine the relationship between corporate governance (CG) and corporate performance, considering the effect of the COVID-19 pandemic. We consider a sample of Portuguese-listed firms for the period between 2010 and 2020 using a panel data methodology. The main results show that higher levels of managerial ownership and gender diversity may drive higher firm performance. However, no evidence was found that a representation of three or more female directors leads to an increase in performance. Moreover, the results suggest that there is a negative relationship between leverage and performance when we consider a market-based performance measure. Finally, the study found evidence that the COVID-19 pandemic had a negative impact on corporate performance. This study sheds light on the role of ownership and gender on firms' performance. The results of this research can have some implications for academia and policymakers' decisions.