Gender diversity reporting, performance, and exogenous shocks: evidence from New Zealand

Whether and how gender diversity on corporate boards affects corporate performance has been the focus of public debate, academic research, and government agenda for more than a decade. Though having women on corporate boards was previously considered a form of tokenism and a matter of corporate image, gender diversity is increasingly perceived as a value-driver in organisations. New Zealand has one of the lowest rates of women on publicly-listed company boards in the western world. This study utilised a sample of (New Zealand stock exchange) NZX firms to explore whether or not firms with women on the corporate boards of directors financially outperform companies with all-male boards. Drawing upon critical mass theory and agency theory literature, the study analyses 69 public companies over the period from 2005 to 2016. Results confirm that women on corporate boards tend to exert a positive influence on companies that is reflected in corporate financial measures. Several comparative results are presented for pre- and post-reporting requirement; pre-, during- and post-global financial crisis windows.