Cardiff University | Prifysgol Caerdydd ORCA
Online Research @ Cardiff 
WelshClear Cookie - decide language by browser settings

Female board representation, corporate innovation and firm performance

Chen, Jie ORCID: https://orcid.org/0000-0002-4076-7121, Leung, Woon ORCID: https://orcid.org/0000-0002-0389-2126 and Evans, Kevin P. ORCID: https://orcid.org/0000-0001-8854-2629 2018. Female board representation, corporate innovation and firm performance. Journal of Empirical Finance 48 , pp. 236-254. 10.1016/j.jempfin.2018.07.003

[thumbnail of Female board representation, corporate innovation and firm performance.pdf]
Preview
PDF - Accepted Post-Print Version
Available under License Creative Commons Attribution Non-commercial No Derivatives.

Download (952kB) | Preview

Abstract

We show evidence that female board representation is associated with greater innovative success, and thus enhances firm performance in innovation-intensive industries. Firms with female directors tend to invest more in innovation and obtain more patents and citations for given R&D expenditures. An increase of 10 percentage points in the tenure-weighted fraction of female directors is associated with approximately 6% more patents and 7% more citations. Investigating the underlying mechanisms, the positive association between female board representation and corporate innovation is stronger when product market competition is lower and when managers are more entrenched, consistent with increased monitoring by female directors improving managers’ incentives to innovate. Furthermore, we find that female board representation is positively associated with performance only for firms for which innovation and creativity play a particularly important role.

Item Type: Article
Date Type: Publication
Status: Published
Schools: Business (Including Economics)
Additional Information: Released with a Creative Commons Attribution Non-Commercial No Derivatives License (CC BY-NC-ND)
Publisher: Elsevier
ISSN: 0927-5398
Date of First Compliant Deposit: 24 July 2018
Date of Acceptance: 18 July 2018
Last Modified: 07 Nov 2023 10:17
URI: https://orca.cardiff.ac.uk/id/eprint/113381

Citation Data

Cited 99 times in Scopus. View in Scopus. Powered By Scopus® Data

Actions (repository staff only)

Edit Item Edit Item

Downloads

Downloads per month over past year

View more statistics