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Literature / resource Imported

The Impact of Women Power on Firm Value

Portugal · LIsbon · Transnational · See the Portugal profile

Companies have been encouraged by policy to place women on board and top management positions. Proposals from regulators and governance reforms explicitly stress the importance of gender diversity in the boardroom. This 2022 paper analyses the impact of the presence of women in e

Details

Promoter
Tiago Cruz Gonçalves, Cristina Gaio and Micaela Rodrigues — website
Power domain
Political Power, Economic Power
Methods / tools
Gender Training, Awareness-raising, Benchmarking
Region (NUTS)
PT17
Keywords
firm value, gender diversity, board, chairperson, CEO

Context

A 2022 academic study published in MDPI examines the relationship between women in senior executive and non-executive roles (Chair, CEO, CFO) and firm value among listed companies in the EU14, using publicly available corporate data.

Objectives

To analyse whether the presence of women in top governance and management positions is associated with firm value, informing the policy debate on board and management gender-diversity requirements.

Activities

Statistical analysis of listed European public companies, examining firm value (including Tobin's Q) in relation to the gender of Chair, CEO and CFO, shareholder status, and the gender of the head of government in the company's home country.

Results

Firms with women CFOs show higher firm value; no significant association was found between women as Chairs or CEOs alone and firm value. Firm value is higher in countries governed by women. When a woman CFO or Chair is simultaneously a shareholder, firm value is negatively associated; a transition from a male to a female Chair is positively associated with firm value.

Implementation

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