Board gender diversity and organization capital

• Gender-diverse boards allocate more resources to organization capital (OC). • Gender-diverse boards enhance the positive relationship between OC investment and firm value. • The endogeneity issue is addressed by PSM-DID and instrumental variable approaches. This study examines the effects of board gender diversity on firms’ investment in organization capital (OC), drawing on a comprehensive dataset of US public firms from 2000 to 2019. The main findings suggest that firms with greater board gender diversity tend to allocate more resources toward OC. Our results remain robust when employing an instrumental variable approach and propensity score matching with difference-in-differences analysis to address endogeneity concerns. Furthermore, we find that board gender diversity amplifies the positive effects of OC on firm value. Our investigation provides new evidence of the positive relationship between board gender diversity and firm value.