Breaking barriers: assessing the influence of female directors on financial performance beyond the boardroom

Josep Garcia-Blandon (), Josep Maria Argilés-Bosch (), Diego Ravenda () and David Castillo-Merino ()
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Josep Garcia-Blandon: Universitat Ramon Llull
Josep Maria Argilés-Bosch: Universitat de Barcelona
Diego Ravenda: TBS Business School
David Castillo-Merino: Universitat Ramon Llull

Review of Managerial Science, 2025, vol. 19, issue 10, No 5, 3141 pages

Abstract: Abstract The persistent under representation of women in executive committees continues to challenge gender equality in corporate leadership. Legislative interventions promoting gender quotas have led to improvements in boardroom gender diversity but have fallen short in addressing executive committee imbalances. This study investigates the impact of women’s inclusion in executive committees on financial performance. Spanning large European corporations from 2015 to 2022, a difference-in-differences approach coupled with fixed effects estimations evaluates whether firms that incorporated women into these committees exhibited greater performance improvements compared to those maintaining all-male executive compositions. Contrary to expectations, the findings reveal a lack of positive influence on financial performance metrics, showcasing negative effects on accounting-based indicators. Notably, higher female representation in the executive committee, beyond critical mass, fails to alter financial performance. Furthermore, the study dismisses the notion that the level of gender equality in a firm’s country of origin moderates this relationship. The implications of the findings are discussed.

Keywords: Female executive directors; Executive committee; Financial performance; Critical mass theory; Difference-in-differences (search for similar items in EconPapers)
JEL-codes: G30 M40 (search for similar items in EconPapers)
Date: 2025
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DOI: 10.1007/s11846-025-00844-7

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