The Impact of Women Power on Firm Value

Tiago Gonçalves (), Cristina Gaio and Micaela Rodrigues
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Cristina Gaio: ISEG Lisbon School of Economics & Management, Universidade de Lisboa & Advance/CSG, 1200-781 Lisboa, Portugal
Micaela Rodrigues: ISEG Lisbon School of Economics & Management, Universidade de Lisboa & Advance/CSG, 1200-781 Lisboa, Portugal

Administrative Sciences, 2022, vol. 12, issue 3, 1-15

Abstract: Companies have been encouraged by policy to place women on board and top management positions. Proposals from regulators and governance reforms explicitly stress the importance of gender diversity in the boardroom. This paper analyzes the impact of the presence of women in executive and non-executive positions, as Chairs, CEOs or CFOs, on firm value in the context of European public companies. The results suggest that the presence of women impacts firm value positively. The results also suggest that, in countries governed by women, firm values are higher. A further analysis provides evidence that, when women CEOs and Chairs are simultaneously shareholders, firm value is negatively impacted. In contrast, when a Chair changes from a man to a woman, firm value is positively impacted. This study contributes to the ongoing debate on whether appointing women to board positions and management positions has positive valuation effects, and it is of the interest to policymakers and investors, among others.

Keywords: firm value; gender diversity; board; chairperson; CEO and CFO (search for similar items in EconPapers)
JEL-codes: L M M0 M1 M10 M11 M12 M14 M15 M16 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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