Gender Diversity on Boards and Bank Efficiency Across Emerging Europe

Alin Marius Andrieș, Bogdan Capraru (), Antonio Minguez-Vera () and Simona Nistor ()
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Bogdan Capraru: Alexandru Ioan Cuza University of Iasi, Faculty of Economics and Business Administration
Antonio Minguez-Vera: University of Murcia, Faculty of Economics and Business, Campus de Espinardo S/N, 30100 Espinardo (Murcia), Spain
Simona Nistor: Babeş-Bolyai University of Cluj-Napoca, Faculty of Economics and Business Administration, Cluj-Napoca, Romania and Academy of Romanian Scientists, Bucharest, Romania

Journal for Economic Forecasting, 2024, issue 3, 24-64

Abstract: This paper aims to contribute to the intense policy debate on gender diversity by providing new insights regarding the link between gender diversity across boards and efficiency in emerging banking markets. We employ an original dataset specific to a large sample of financial institutions from Central and Eastern Europe (CEE) and find robust evidence that the absence of females on supervisory and managing boards results in lower cost efficiency (minimum production cost with limited resources), as well as lower technical efficiency (maximum output production with limited resources). In turn, greater gender diversity among the members of the bank boards increases efficiency, especially for smaller banks. Our results also indicate that encouraging females’ presence in supervisory boards that have more domestic or less independent members leads to higher bank efficiency. When banks have less restrictive governance mechanisms, greater gender diversity across managing boards also enhances bank efficiency.

Keywords: gender diversity; bank efficiency; corporate governance; managing boards; supervisory boards (search for similar items in EconPapers)
JEL-codes: G21 G32 G34 (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:rjr:romjef:v::y:2024:i:3:p:24-64

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