Gender Diversity on Corporate Boards: Do Women Contribute Unique Skills?

Daehyun Kim and Laura T. Starks

American Economic Review, 2016, vol. 106, issue 5, 267-71

Abstract: We show that gender diversity in corporate boards could improve firm value because of the contributions that women make to the board. Prior studies examine valuation effects of gender-diverse boards and reach mixed conclusions. To help resolve this conundrum, we consider how gender diversity could affect firm value, that is, what mechanisms could explain how female directors benefit corporate board performance. We hypothesize and provide evidence that women directors contribute to boards by offering specific functional expertise, often missing from corporate boards. The additional expertise increases board heterogeneity which Kim and Starks (2015) show can increase firm value.

JEL-codes: G32 G34 J16 L25 (search for similar items in EconPapers)
Date: 2016
Note: DOI: 10.1257/aer.p20161032
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Citations: View citations in EconPapers (135)

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