Board of Directors’ connections, gender, and firm performance in a male-dominated industry: Evidence from U.S. banking

Ann L. Owen, Judit Temesvary and Andrew Wei

Journal of Behavioral and Experimental Finance, 2025, vol. 47, issue C

Abstract: Existing literature has studied the role of within-firm networks, but given that the vast majority of connections are between men, its conclusions are not generalizable to connections of women. We study how connected female versus male board members affect performance in the U.S. banking industry. We find that better connected female board members improve bank profitability and reduce earnings management, especially when women are connected to men. We find somewhat weaker evidence that connections between men reduce bank performance. Consistent with the experimental literature, our findings suggest that connections may improve board functioning, allowing female board members to gain influence and participate more effectively in firm governance.

Keywords: Bank boards; Professional networks; Gender diversity; Instrumental variables (search for similar items in EconPapers)
JEL-codes: G21 G34 J16 (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eee:beexfi:v:47:y:2025:i:c:s2214635025000723

DOI: 10.1016/j.jbef.2025.101091

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