Impact of women board directors on firm performance: Evidence from listed-firms in China

Abstract

As part of the corporate governance mechanism, board of directors plays a critical role in running business. The board gender composition can affect board communication and influence firm performance. While there are growing interests in researching board gender diversity, there is lack of studies based on evidences from China. This study investigates the impact of board gender diversity on Chinese listed-firm performance from 2007 to 2018. The empirical results show a significantly positive relationship between women on board and firm performance. This study elaborates women board directors through three different dimensions: presence, number and percent. Among these dimensions, there is a significant and positive relationship between women board directors and firm performance. This paper indicates a beneficial effect of board gender diversity in China. As governments and firms in China continually improve corporate governance and gender diversity, this paper offers useful empirical information for policy makers on this issue.