Women on Boards An empirical study of board gender diversity and firm performance across Europe

Abstract

This thesis explores whether female presence on corporate boards is associated with a difference in firm performance, and whether this relationship differs during periods of economic uncertainty, particularly the COVID-19 pandemic. Examined in the light of Upper Echelons Theory, Critical Mass Theory, and Risk-Aversion Theory, and supported by previous literature, the study provides a deeper understanding of gender diversity as a strategic factor in corporate performance. Through a quantitative approach, the analysis uses panel data from European publicly listed firms between 2016 and 2023. Firm performance is measured using both accounting-based (Return on Assets) and market-based (Tobin’s Q) indicators. The study applies Ordinary Least Squares (OLS), Difference-in-Differences (DiD), and Propensity Score Matching (PSM) to ensure reliable results. The results indicate that firms with at least 30% female board representation exhibit a significantly better performance. However no conclusion can be drawn about whether this relationship changed during the COVID-19 crisis. The findings contribute to the ongoing gender diversity debate and highlight the value of inclusive leadership and equitable decision-making in institutions and reinforce the argument that inclusive leadership contributes to both operational efficiency and market valuation across European firms.