The Impact of the Norwegian Gender Quota on Firm Risk

Abstract

We investigate the Norwegian gender quota, implemented for Norwegian listed firms’ boards in 2006, and its impact on firm risk. Using a difference-in-difference model, we find that the increase in female board representation has little impact on firm risk-taking; if anything, it increases firm risk in the long-run. Our finding supports the view that, although women are more risk averse than men in general, female board members are a group of women with a lower degree of risk aversion compared to the common female population.