Women in Boardrooms and Firm Performance: A Review of the Recent Trends, Global Scenario, and Way Forward

Abstract

The aim of this review paper is to explore the literature on board gender diversity (BGD) as a corporate governance strategy and whether it brings a favourable impact on firm’s performance. While referring to previous empirical studies, we found a mixed view of the impact of women on boards (WOB) on firm’s performance (FP), but the majority of literature does present a business case for having women directors. To establish the quality and objectivity of this review paper, articles from several high-ranked journals which were published between 2001 and 2023 were selected, and a structured investigation was carried out to prepare a clear meta-analytic presentation of the theme. The findings from chosen research have been categorised, synthesised, and summarised to touch upon the role of gender in corporate boardrooms across four major continents and put forward its implications. Through our cross-continent analysis, we discover stronger positive WOB-FP relationships in developed nations (with higher gender parity scores) than in emerging economies. Our research underpinnings suggest scanty research in the African Subcontinent emanating from inadequacies of a conducive and progressive business environment, while still asserting a positive WOB-FP link. Critical mass and resource dependency theories have also influenced a large section of the literature. This study pulls out many important themes from empirical research on board gender diversity that has been undertaken for over two decades now which aids in identifying pitfalls in the global context and establishing a research agenda for the future.

Keywords: Corporate Governance, Board Composition, Board Gender Diversity, Women Directors, Firm Performance

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