Board gender diversity and corporate financial performance: Evidence from CAC 40

Abstract

This study aims to provide an understanding of the impact of board gender diversity on corporate financial performance and of women's perceptions regarding the attributes and the role of gender-balanced boards. The focus is CAC 40 constituents and the period of investigation from 2008 to 2012. This study considers the percentage of women on company boards and women's perceptions, as these two areas are considered key to determine what drives the implementation of gender diversity in companies. Quantitative analysis and a questionnaire survey are used to answer the research questions. This study has found that companies with a higher proportion of women on their boards outperform those with a lower proportion in terms of return on sales and EBITDA margin. Our questionnaire survey indicates that increased board gender diversity leads to better corporate governance and increased corporate value. Also, women perceive that board gender diversity is a performance enhancer, that there are barriers in the way of becoming board members, and that legislation is essential to change the gender landscape. Women do not place 'being a board member' within their top-3 career achievement priorities, suggesting that while they feel comfortable with the idea of being appointed to a company board, they might also have other objectives in mind when planning their career. © Maelia Bianchi, George Iatridis, 2014.