australian-aid-white-2
Follow us on:
Search the Knowledge Hub

Gender Diversity in Boards and Performance of Philippine Publicly Traded Firms: Do Women Matter?

De La Salle University - Angelo King Institute

2016

The Philippines

Report/Paper

Workplace Gender Equality

Gender diversity Gender equality Workplace Gender Equality Women in the workplace

Gender Diversity in Boards and Performance of Philippine Publicly Traded Firms: Do Women Matter?

Gender Diversity in Boards and Performance of Philippine Publicly Traded Firms: Do Women Matter?

The ‘Gender Diversity in Boards and Performance of Philippine Publicly Traded Firms: Do Women Matter?’ report examines this board-level gender diversity issue for the case of the firms traded in the Philippine Stock Exchange during the period 2003 to 2014.

The article explores the issue of gender diversity on corporate boards in the Philippines and the socioeconomic contributions that women directors confer to the firm, including improved board monitoring quality and a more ethical and democratic form of leadership. This rationale forms part of the “economic case” for women’s participation in boards, apart from the usual grounds of social or equality considerations.

Highlights

  • The article finds that greater gender diversity in boards does not significantly affect short-term firm performance, but seems to drive down long-term firm. These findings are consistent with the investor bias theory, which argues that investors collectively drive down the market value of firms with more gender-diverse boards because they have a perceptual bias against women as capable firm leaders and directors.
  • The results question the economic rationale of imposing any mandatory minimum gender quota on boards of, at least, Philippine publicly listed firms, similar to the practice in most European countries.
  • The authors suggest that policy makers must be cautious in proposing quotas that seek to promote gender parity in boards of directors of publicly traded firms based on a claim that it will significantly improve firm performance and shareholder value. Instead, enforcing board-level gender quotas may have to be justified in terms of social equality, business reputation, and purely ethical grounds.

Contents

  • Abstract
  • Introduction
  • Related Literature, Theoretical Framework, and Hypotheses Development
    • Gender Diversity and Firm Financial Performance
    • Board Independence and Firm Financial Performance
    • Other Factors Affecting Firm Performance
    • Data, Variable Measurement, and Methodology
  • Results
  • Conclusions
  • References
to top