Gender diversity in the board, women's leadership and business performance

Jorge Moreno-Gómez, Esteban Lafuente, Yancy Vaillant
2018 Gender in Management  
Purpose: This paper investigates how gender diversity in top management-i.e., boardroom and top management positions-impacts business performance among Colombian public businesses. Design/methodology/approach: Building on the Upper Echelon theory which emphasizes that gender in an important characteristic that influences top management's decision making, we employ panel data models on a sample of 54 Colombian public businesses for the period 2008-2015 to test the proposed hypotheses relating
more » ... otheses relating gender diversity and subsequent business performance. Findings: The results support that gender diversity is positively associated with subsequent business performance. More concretely, we find that the relationship between gender diversity at the top of the corporate hierarchy-in our case, as CEO and in the top management team-and subsequent performance becomes more evident when performance is linked to business operations (ROA), while the positive effect of women's representation in the boardroom and subsequent performance is significant when performance is measured via shareholder-oriented metrics (ROE). Originality/value: Few studies have addressed the role of gender diversity on performance in developing economies. This study contributes to better understand how gender diversity impacts performance in contexts where women are underrepresented in the top management, and where the appointment of women directors or managers is not driven by regulatory pressures. . succeed; innovative firms with more women in top management are more profitable; and companies with more gender diversity have more revenue, customers, market share and profits. A comprehensive analysis of 95 studies on gender differences showed that when it comes to leadership skills, although men are more confident, women are more competent. To break down the barriers that hold women back, it's not enough to spread awareness. If we don't reinforce that people need -and want -to overcome their biases, we end up silently condoning the status quo."
doi:10.1108/gm-05-2017-0058 fatcat:pw4xt7tq7valxnshhb2qspe6ai