Variety is the Spice of Life - and Boardrooms

Carol Padgett
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Carol Padgett: ICMA Centre, Henley Business School, University of Reading

ICMA Centre Discussion Papers in Finance from Henley Business School, University of Reading

Abstract: We examine the impact of board diversity on both the corporate value and equity risk of British companies since the financial crisis. We find that the inclusion of overseas directors on boards improves market value and reduces equity risk. When the number of female directors included on the board reaches a critical mass this also increases corporate value but has no effect on risk. These findings do not change when we allow for the presence of board members who are qualified accountants or who hold MBAs. Diversity in and of itself has a significant effect on corporate performance.Length:

Keywords: corporate value; risk; board diversity; gender; nationality (search for similar items in EconPapers)
JEL-codes: G34 J15 J16 (search for similar items in EconPapers)
Date: 2014-10
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Persistent link: https://EconPapers.repec.org/RePEc:rdg:icmadp:icma-dp2014-11

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