It is not just about numbers: international evidence of women leadership index and corporate performance

Purpose This study aims to investigate the effect of women leadership on corporate performance by developing a Women Leadership Index (WLI) that captures the dimensions of gender, education and experience. Design/methodology/approach The authors use panel data from 1,781 nonfinancial firms across the Asia-Pacific, Europe and the Middle East and Africa from 2016 to 2023, yielding 13,107 firm-year observations. The analysis uses fixed effects regression, with results validated through a series of robustness and endogeneity checks. Findings The results reveal a significant positive relationship between the Women Leadership Index (WLI) and key corporate performance indicators, including ROA, ROE and Tobin’s Q. These findings align with the Upper Echelons Theory (UET), Human Capital Theory (HCT) and Strategic Choice Theory (SCT). They suggest that the inherent characteristics of women, when combined with high educational attainment and professional experience, enable them to play a strategic role in enhancing firm performance and value. Practical implications This study encourages companies and regulators to go beyond merely representing women numerically on corporate boards. It advocates for greater consideration of women’s educational and experiential backgrounds. Hence, policymakers should facilitate broader access for women to education and leadership development opportunities. Originality/value Unlike most prior literature that predominantly adopts a representational approach, this study introduces a novel measurement framework through a composite index that more accurately reflects the substantive contributions of women in leadership. By integrating UET, HCT and SCT, this study offers a comprehensive understanding of how women’s leadership contributes not only through their presence but also through their strategic decision-making capabilities.