Literature Review Women on boards and in TMTS and firm performance 49 in men s tendency to provide narrower earnings forecasts and to exercise options at a later stage The still small percentage of women in executive positions is surprising when considering that wo men tend to make shareholder friendly decisions Possible explanations might be a potential scarcity of qualified female executives or in the analysis li mited focus on selected corporate decisions which means that male executives could perform better in other areas such as strategy or compliance Interestingly using numerous regression models in combination may yield conflicting results while the OLS regression analysis provides evidence for a insignificant positive relationship between di versity and Tobin s Q the coefficient is significantly negative using firm fixed effects and a dynamic panel model Adams Ferreira 2009 Chapple Humphrey 2014 The authors of the respective studies note that these disparities underscore the importance for correct model specification It appears that the presence of women on the board does not automatically improve performan ce Five studies in this survey provide evidence for a negative relationship between the variab les of interest Contrary to the two event studies that showed positive market reactions to female top executive announcements and contrary to the positive market reactions to financial decisions of female led firms observed by Huang and Kisgen 2013 248 listed companies in Norway in a na tural experiment setting on the whole experience a negative market reaction in response to the of ficial announcement of the gender quota Ahern Dittmar 2012 Stock returns are stronger ne gative for firms that had no female directors at that time There seems to be consistency with the hypothesis that boards are selected to maximize shareholder value and that severe constraints in the choice of directors imposed by law lead to significant reductions in value Ahern Dittmar 2012 The findings further show a negative and significant link between the women s ratio on the board and Tobin s Q persisting over time Similarly Lee and James 2007 who employ event study methodology in combination with multivariate regression analysis find negative and significant cumulative returns for female executives and po sitive and significant cumulative returns for male executives These market reactions are backed by Kolev 2013 who regresses firm specific monthly TSRs against the indicator variable female CEO and finds that female CEOs underperform their male counterparts in terms of shareholders returns by roughly 0 35 percent per month Although only sig nificant for larger firms and only considering one fi nancial year evidence for a negative link between female representation and ROA and between the women s ratio on boards and Tobin s Q is provided by Darmadi 2013 The results imply that a higher proportion of women tends to be found in low per forming firms Negative and significant effects of the proportion of shareholder elected females on the board on performance measures Tobin s Q ROA and ROS are documented by Bøhren and Strøm 2010 The results are robust to how performance is measured Thus they argue that valuation argu ments do not appear suitable to justify politics of board design from the owners point of view polit icians should ignore independence and encourage less gender diversity fewer employee directors and more direc tors with multiple seats Alternatively one could argue that for gender mix in particular political arguments should not be based on beneficial economic consequences for the firm s stockholders Bøhren Strøm 2010 p 1305 Women on boards and in TMTs and firm performance

Vorschau DIRK-Forschungsreihe Band 21 Workforce diversity and personal policies Seite 49
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