Exploring the link between gender diversity and financial performance on Norwegian boards

Abstract

In recent years, gender diversity has become a much-debated topic with regards to optimal board compositions. This paper studies the relationship between gender diversity on Norwegian boards and firms’ financial performance. Using annual data for Norwegian firms from 2000 to 2020, we find that gender diversity on the boards of financial firms create more value for its owners. Our results suggest that gender diversity should be a priority when considering board compositions in financial firms. Contrarily, we find that gender-diverse boards in the overall industry decrease firm performance. However, as we only conduct this analysis from an economic point of view, other factors such as ethics and morality should be considered when constructing the ideal board.