Literature Review Women on boards and in TMTS and firm performance 11 stronger participation of women in leadership The review concentrates on economic rather than moral arguments The business case for increa sed gender diversity in top management teams TMT and on corporate boards should provide sup port for a positive effect on firm performance and shareholder wealth in order to convince decision makers Thus the guiding question of the review is if previous research does provide empirical evi dence for economic benefits of increased female representation in top management positions The second paper moves on from theory to practice It investigates whether the moral or the economic point of view on diversity is dominant in firms in German speaking countries and it exami nes the status quo of gender diversity promotion and the attitude towards women on boards and female leadership Increasing female representa tion in management and on boards can be both a corporate governance issue and a personnel ma nagement objective at the same time The first two papers discuss if and under what conditions increasing female participation may be a stra tegy for improving corporate governance and thus firm performance The third paper shows the potential adverse ef fects of failures in corporate governance In the context of a case study it traces the development of male CEO overconfidence with fatal conse quences for the firm eventually leading to its insolvency Male executives in fact appear to be overconfident relative to female executives Huang Kisgen 2013 Hence besides the poor monito ring and control mechanisms gender is a factor that plays a role also in this context The fourth paper focuses on measures of person nel management by examining the wealth effects of layoff decisions Large scale layoffs can be of a proactive or reactive nature and they are executed for various reasons A stakeholder conflict is regu larly put forward as several stakeholders such as the suppliers of finance labor unions or the public are affected but primarily the shareholders bene fit from the dismissals at the expense of emplo yees Fraunhoffer Mietzner Schiereck Schneider 2014 This paper investigates if layoff decisions re ally increase the equity s value in which case they would be beneficial for the shareholders Section 2 reviews relevant literature on the re lationship between women on corporate boards or in TMTs and financial firm performance Since the 1980s a steadily growing number of studies has been concerned with various effects of diver sity in a business environment Evidence suggests that fostering diversity is not only an imperative of fairness but that firms may also realize specific benefits from a diverse workforce However there is also evidence for the advantageousness of ho mogeneous teams The literature review presents evidence for positive but also potential negative effects of a diverse workforce on organizational processes and outcomes The review starts with an introduction to the con cepts of workforce diversity and diversity manage ment in organizations and continues with outlining the role of gender diversity in the context of busi ness and of corporate governance Hereafter pre vious findings on various effects of female repre sentation on corporate boards are presented The core of the survey is a review of 44 studies on the link between women on boards or TMTs and firm performance or firm value respectively On the basis of existing research findings and em pirical evidence section 3 evaluates the status quo of diversity in predominantly listed compa nies in German speaking Europe For this purpo se an anonymous survey among investor rela tions professionals in Germany Switzerland and Introduction

Vorschau DIRK-Forschungsreihe Band 21 Workforce diversity and personal policies Seite 11
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