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Women in the boardroom: Performance and Quotas

Fagergren, Carl LU and Hurst, Samuel (2012) BUSN88 20121
Department of Business Administration
Abstract
Purpose: The purpose of this thesis is to evaluate how the percentage of female directors on a company’s board affects the firm’s performance. The empirical results of this thesis will be used to help decide whether Canada should establish a quota for female board members.
Theories: There are four main theories referenced in this thesis, they are; agency theory, signaling theory, resource dependency theory, and board size and performance.
Methodology: Three measurements are used to evaluate firm performance, they are; average return, Tobin’s q, and return on assets. Three types of regressions are used, they are; ordinary least squares, fixed effects, and two stage least squares. The data needed to perform this thesis was taken primarily... (More)
Purpose: The purpose of this thesis is to evaluate how the percentage of female directors on a company’s board affects the firm’s performance. The empirical results of this thesis will be used to help decide whether Canada should establish a quota for female board members.
Theories: There are four main theories referenced in this thesis, they are; agency theory, signaling theory, resource dependency theory, and board size and performance.
Methodology: Three measurements are used to evaluate firm performance, they are; average return, Tobin’s q, and return on assets. Three types of regressions are used, they are; ordinary least squares, fixed effects, and two stage least squares. The data needed to perform this thesis was taken primarily from annual reports and stock indices.
Conclusion: This thesis has come to the conclusion that there is no observable performance benefit to adding more women to the board of directors. Out of all the regressions performed not a single one found a significant and positive relationship between the percentage of women on the board and performance. These results suggest that if Canada decides to implement a gender quota for public corporations, they should not expect to observe any increase in firm performance. (Less)
Please use this url to cite or link to this publication:
author
Fagergren, Carl LU and Hurst, Samuel
supervisor
organization
course
BUSN88 20121
year
type
H1 - Master's Degree (One Year)
subject
keywords
Keywords: Firm Performance, Women, Board of Directors, Quota, Canada, Corporate Governance, Gender.
language
English
id
2733054
date added to LUP
2012-09-06 10:10:08
date last changed
2012-09-06 10:10:08
@misc{2733054,
  abstract     = {Purpose:	The purpose of this thesis is to evaluate how the percentage of female directors on a company’s board affects the firm’s performance. The empirical results of this thesis will be used to help decide whether Canada should establish a quota for female board members.
Theories:	There are four main theories referenced in this thesis, they are; agency theory, signaling theory, resource dependency theory, and board size and performance.
Methodology:	Three measurements are used to evaluate firm performance, they are; average return, Tobin’s q, and return on assets. Three types of regressions are used, they are; ordinary least squares, fixed effects, and two stage least squares. The data needed to perform this thesis was taken primarily from annual reports and stock indices. 	
Conclusion:	This thesis has come to the conclusion that there is no observable performance benefit to adding more women to the board of directors. Out of all the regressions performed not a single one found a significant and positive relationship between the percentage of women on the board and performance. These results suggest that if Canada decides to implement a gender quota for public corporations, they should not expect to observe any increase in firm performance.},
  author       = {Fagergren, Carl and Hurst, Samuel},
  keyword      = {Keywords:	Firm Performance,Women,Board of Directors,Quota,Canada,Corporate Governance,Gender.},
  language     = {eng},
  note         = {Student Paper},
  title        = {Women in the boardroom: Performance and Quotas},
  year         = {2012},
}