Do the Quota Applications for Women on Boards Improve Financial Performance

In the context of corporate governance principles, governments set regulations to increase the sustainable representation of women on boards. This paper seeks to answer the question of whether or not the application of compulsory or voluntary quotas for female board members improves firm performance...

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Bibliographic Details
Published in:Sustainability 2019-11, Vol.11 (21), p.5901
Main Authors: Yıldız, Sebahattin, Meydan, Cebrail, Taştan Boz, İlknur, Sakal, Önder
Format: Article
Language:English
Subjects:
Capital markets
Corporate governance
Decision making
Directors
Gender
Government regulations
Hypotheses
Indicators
Market value
Multiculturalism & pluralism
Principles
Quotas
Representations
Sex discrimination
Sustainability
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Summary:In the context of corporate governance principles, governments set regulations to increase the sustainable representation of women on boards. This paper seeks to answer the question of whether or not the application of compulsory or voluntary quotas for female board members improves firm performance. Based on difference analyses on the 2011 principles of the Capital Markets Board (CMB), we do not find significant differences between the companies with at least one female member on their board and those without any female board members in terms of financial performance indicators (return on asset (ROA), return on equity (ROE), market value/book value (MV/BV)). Based on difference analyses on the 2014 principles of the Capital Markets Board, we further find that the ROA of the companies with 25% and more female members is lower than the companies with
ISSN:2071-1050
2071-1050
DOI:10.3390/su11215901