Document Type
Thesis or dissertation
Date of this Version
2020
Advisor
Shing-Yi Wang
Abstract
This study examines the impact of a quota in India which mandated that all firms with an annual revenue of over Rs.300 crore (equivalent to USD$40M) have at least one woman on their board. Using a difference-in-difference regression analysis, I find that having a woman on the board results in a 0.4483 percentage point increase in return on invested capital for firms which did not already have a woman on their board prior to the quota being enacted. I also exploit the revenue cutoff in the quota to conduct a regression discontinuity analysis which produces results consistent with the above. These benefits existed even when the cost of appointing a woman was low, demonstrated by the fact that even firms well below the revenue cutoff appointed a woman, and that most of the women appointed did not have relevant industry experience. This study therefore provides causal evidence for the effect of corporate board gender diversity on firm performance, a relationship that has been understudied within the context of developing countries.
Keywords
gender quotas, corporate boards, women, equality
Recommended Citation
Wu, S. (2020). "Do Women on Corporate Boards Impact Financial Performance? A Study of Indian Firms," Joseph Wharton Scholars. Available at https://repository.upenn.edu/joseph_wharton_scholars/84
Date Posted: 21 May 2020