Gender Composition of Board and Top Management: A Driver of Company Performance?

Paper's objective(s) and research backgroundRecent research in financial management has shifted focus to gender studies in the workplace, uncovering that women's skills, often undervalued and underappreciated, play a significant role in enhancing companies' financial performance.The inclusion of women on corporate boards improves governance quality by promoting diverse perspectives and a greater inclination toward risk reduction.Women have also proven their critical leadership capabilities, particularly during times of crisis.However, findings on the link between gender diversity and performance remain inconsistent.This study specifically investigates the impact of gender composition in boards and top management on a company's financial performance, while also exploring how various company characteristics influence financial outcomes. Data/MethodsThe research draws on a sample of over 700 multinational corporations across nearly 40 countries.Using linear regression, the study analyses the relationship between selected company characteristics, the gender composition of boards and top management, and financial performance, measured as revenue per employee. Results/Conclusions/Value addedThe findings highlight a positive correlation between gender diversity in boards and top management and improved financial performance.Additionally, the study confirms that company size and ownership structure also significantly impact performance.A key contribution of this research lies in its comprehensive analysis of multiple factors and its extensive global scope, offering valuable insights into the role of gender diversity in corporate success.