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Does a high women quota in supervisory boards influence firm success?

Does a high women quota in supervisory boards influence firm success? The purpose of this paper is to investigate the relationship between the success of the 50 EURO STOXX companies as measured by the earnings before taxes (EBT) and the percentage of female members on their supervisory boards.Design/methodology/approachThe paper relies on data extracted from the annual reports of the 50 EURO STOXX companies in 2015 and from financial websites.FindingsThe paper provides the existence of a weak correlation between companies’ performance as measured by EBT and the percentage of women on supervisory boards.Research limitations/implicationsThis study has two main limitations: first, a single key performance indicator was used to measure firms’ success; and second, the study offers insights related only to the year 2015. The analysis could be extended over a larger time span while some other variables could be considered in a more holistic approach.Practical implicationsThe paper raises awareness that there is much to be done with regard to the presence of women on boards, and readers, investors and business owners gain an insight on the business environment and women active on European corporate boards.Originality/valueBy concentrating on the companies of the EURO STOXX 50 Index, the study offers a good image of the European business environment. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png EuroMed Journal of Business Emerald Publishing

Does a high women quota in supervisory boards influence firm success?

EuroMed Journal of Business , Volume 13 (3): 24 – Oct 30, 2018

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Publisher
Emerald Publishing
Copyright
© Emerald Publishing Limited
ISSN
1450-2194
DOI
10.1108/emjb-02-2018-0011
Publisher site
See Article on Publisher Site

Abstract

The purpose of this paper is to investigate the relationship between the success of the 50 EURO STOXX companies as measured by the earnings before taxes (EBT) and the percentage of female members on their supervisory boards.Design/methodology/approachThe paper relies on data extracted from the annual reports of the 50 EURO STOXX companies in 2015 and from financial websites.FindingsThe paper provides the existence of a weak correlation between companies’ performance as measured by EBT and the percentage of women on supervisory boards.Research limitations/implicationsThis study has two main limitations: first, a single key performance indicator was used to measure firms’ success; and second, the study offers insights related only to the year 2015. The analysis could be extended over a larger time span while some other variables could be considered in a more holistic approach.Practical implicationsThe paper raises awareness that there is much to be done with regard to the presence of women on boards, and readers, investors and business owners gain an insight on the business environment and women active on European corporate boards.Originality/valueBy concentrating on the companies of the EURO STOXX 50 Index, the study offers a good image of the European business environment.

Journal

EuroMed Journal of BusinessEmerald Publishing

Published: Oct 30, 2018

Keywords: Firm performance; Key performance indicators; Earnings before taxes; EURO STOXX 50; Gender quota; Women on corporate boards

References