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WOMEN ON CORPORATE BOARDS: To make a difference to firm performance, they need to be on key governance committees

  • Published Date: 22 March 2016

 

Simply appointing women to the board of a top company in response to regulatory pressure has, at best, a limited effect on firm performance. What really makes a difference is appointing women to the governance committees that appoint CEOs and set pay and bonuses.

These are the main findings of research by Colin Green and Swarnodeep Homroy, to be presented at the Royal Economic Society's annual conference in Brighton in March 2016. Their study follows the 100 largest publicly listed European firms over the period 2006-12. More than half of these firms have more than one female director, while 10% of boards are gender-balanced.

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