Female leadership and value creation: Evidence from London stock exchange
Open Access
- 1 January 2018
- journal article
- Published by Virtus Interpress in Corporate Ownership and Control
- Vol. 15 (2-1), 248-257
- https://doi.org/10.22495/cocv15i2c1p10
Abstract
This study examines the effects of female leadership, at both board-level and individual-level, on the corporate value of UK FTSE100 stocks. United Kingdom is a valuable sample for this research as the UK governance sets the goal that at least a third of UK boardroom positions should be held by women by the end of 2020. Using the GMM approach with a dataset of 96 publicly firms from 2006 to 2016; our analysis reveals strong evidence that the existence of female directors on board is positively associated with firm value (Tobin’ Q). Testing for the female director positions, we interestingly found the competing results: the relation between the female chairman and firm value is significantly positive whilst there exists an adverse link between female CEO and firm value. The findings imply a significant effect of quota laws for gender diversity of boards of directors and female directors’ positions on UK corporate market valueKeywords
This publication has 38 references indexed in Scilit:
- Gender and corporate finance: Are male executives overconfident relative to female executives?Journal of Financial Economics, 2013
- Gender and management on Spanish SMEs: an empirical analysisThe International Journal of Human Resource Management, 2011
- The Gender and Ethnic Diversity of US Boards and Board Committees and Firm Financial PerformanceCorporate Governance: An International Review, 2010
- Diversity on Corporate Boards: How Much Difference Does Difference Make?SSRN Electronic Journal, 2010
- Women in the boardroom and their impact on governance and performanceJournal of Financial Economics, 2009
- Gender differences in financial risk aversion and career choices are affected by testosteroneProceedings of the National Academy of Sciences of the United States of America, 2009
- The impact of board size on firm performance: evidence from the UKThe European Journal of Finance, 2009
- Gender Diversity in the Boardroom and Firm Financial PerformanceJournal of Business Ethics, 2007
- How Experience and Network Ties Affect the Influence of Demographic Minorities on Corporate BoardsAdministrative Science Quarterly, 2000
- Demographic Diversity and Faultlines: The Compositional DYnamics of Organizational GroupsAcademy of Management Review, 1998