Gender diversity in corporate America has become an increasingly popular topic for academic research. While extensively written about, no consensus has been reached to conclusively and consistently determine the relationship between the presence of women on a board and financial performance of the firm. This thesis contributes to existing literature by examining diversity through the lens of Rosabeth Moss Kanter’s Critical Mass Theory, questioning whether the third woman on a board truly serves as a “tipping point” for firm performance. Though the results are largely insignificant, we are able to establish that the Critical Mass Theory does not apply to ROA; the predicted impact of the first woman is greater than the impact of the third woman.

Numerous studies have examined the relationship between a critical mass of women on corporate boards and firm performance. Despite convincing arguments that racially diverse board members contribute positively to the board's management oversight and strategy formulation responsibilities, literature examining race in the boardroom has been very scant and racial minority directors remain persistently under- represented on corporate boards. The purpose of this study was to examine whether a critical mass of 30% Black directors on boards and audit committees of public companies performed better than companies with less than 30% Black directors. The study was conducted using the mining and financial services companies listed on the Johannesburg Stock Exchange. Quantitative research methodology was utilized to test the financial ratios of ROA, ROE, Tobin's Q, Share Price, P: E Ratio and Dividend Payout with companies that had a minimum of 30% Black directors compared to companies with less than 30% Black directors. The study revealed that there was no relationship between either a critical mass of Black directors on boards and financial performance or between a critical mass of Black directors on audit committees and financial performance. / Dissertation (MBA)--University of Pretoria, 2013. / ccgibs2014 / Gordon Institute of Business Science (GIBS) / MBA / Unrestricted

The past several years the environmental pressure on companies have increased. Both regarding their impact on the external environment, and on the internal environment. The question of gender diversity in the workplace has been a hot topic for decades. Women have historically always been underrepresented in the boardroom, with men traditionally assuming high governing positions. As more women have assumed a place on the board of directors, factors such as the transparency has increased. Raising the question on whether the increased number of women within decision-making position shas something to do with achieving higher ESG scores.  The purpose of the study is to investigate if there is a relationship between the proportion of women on the board of directors and the ESG scores of listed companies in Europe. Moreover, also study whether the critical ratio of three or more women on the board have any significant effect on the score. The companies included in the study has had at least one ESG score between 2018 – 2022. Four research questions lay ground for four hypotheses, each intended to investigate the relationship between ESG and women on the board of directors.  What was found was a highly significant relationship between the % of women on the board of directors and the ESG score. Breaking it down, all three pillars are highly affected by the ratio of women. The most affected, however, is the governance pillar due to the relationship with board diversity, and transparency towards investors and other stakeholders. These results are supported by previous studies studying the same phenomenon. A significant relationship was also found between the % of women and the ESGC score, meaning the ESG score including possible controversies the company is, or has been, involved in. The difference in effect between the effect on ESG- and ESGC score is not significant, however. Meaning there is nothing saying that women have an increased effect on keeping companies out of scandals involving ESG factors. Moreover, the critical ratio theory is supported by this study. With companies with three or more women on their board of directors scoring significantly higher ESG score than those without.  A conclusion of this study is hence that having more women on the board of directors can increase the work towards ESG matters, and thus also the ESG score due to several different reasons. This further supports the inclusion of gender quotas within companies and institutions.

Background: The debate on gender equality is a topical subject in Sweden as well as the rest of the world. A gender quota law was proposed for Swedish listed companies but was outvoted. Is there a connection between gender equal companies and financial performance? Purpose: The main purpose of this study aims to investigate if companies with gender equal boards financially outperforms companies who does not have a gender equal board. Method: The thesis is based on a quantitative method along with a deductive approach in order to collect secondary data. Multiple regression analysis was performed in order to test the results against Critical Mass Theory, Resource Dependence Theory and previous research findings. Conclusion: The results of the study conclude that there is a significant positive relationship between gender equal boards and a higher market value. Furthermore, our findings show no significant relationship between gender equal boards and profitability. / Bakgrund: Jämställdhetsdebatten är ett aktuellt ämne både i Sverige som i världen. Ett förslag om könskvotering bland bolagsstyrelser på börsen i Sverige lades fram men blev nedröstat. Finns det en koppling mellan jämställda bolagsstyrelser och finansiell prestation? Syfte: Studiens syfte avser att undersöka om företag på Stockholmsbörsen med jämställda bolagsstyrelser har en högre finansiell prestation jämfört med företag som har en icke-jämställd bolagsstyrelse. Metod: Genom ett kvantitativt angreppssätt och deduktiv ansats har studien tagit del av sekundärdata. Studien har använt multipla regressionsanalyser för att testa dess resultat mot Critical Mass Theory, Resource Dependence Theory samt tidigare forskning. Slutsats: Studiens resultat påvisar att det finns ett statistiskt signifikant samband mellan jämställda bolagsstyrelser och ett ökat marknadsvärde. Vidare finner studien inget statistiskt signifikant samband mellan jämställda bolagsstyrelser och företags lönsamhet.

Orsaken till att denna studie genomförts var för att framhäva det ojämnställda förhållande som råder i svenska företagsstyrelser. Vidare har uppsatsskribenterna studerat om förekomsten av kvinnor i svenska företagsstyrelser påverkar företagens CSR-ranking. Detta grundades i tidigare studier som har visat att så är fallet. Studien har tillämpat en kvantitativ undersökning med en deduktiv ansats eftersom den grundats på tidigare forskning och teorier. Critical Mass teorins kritiska massa har använts som brytpunkt vid urskiljande av de två grupperna som därefter jämfördes. Critical Mass teorin innefattar att en styrelse som omfattas av tre eller 30 procent kvinnor har ett större arbete med hållbarhetsbaserade aktiviteter. Genom statistiska beräkningar i form av oberoende t-test har skillnader undersökts mellan två typer av företag; de som uppnår teorin om den kritiska massan mot de som ej uppnår den kritiska massan. För att täcka de två varianterna av Critical Mass teorin, har två oberoende t-tester genomförts för att testa detta. Det resultat som studien åstadkommit var att det, i de båda fallen, fanns statistisk signifikanta skillnader mellan grupperna av företag. Det indikerar på att förekomsten av kvinnor i svenska bolagsstyrelser påverkar företagens CSR-ranking. Trots att studien genererat ett starkt resultat går det inte säga att förklaringen till enökad CSR-ranking endast ligger till grund av en högre närvaro av kvinnliga styrelseledamöter. Andra definitioner av mångfald kan även de ha en inverkan. Andra statistiska undersökningar som gjorts är av deskriptiv art som syftar till att besvara hur företagsstyrelser är sammansatta samt hur hög närvaro av kvinnor som finns. Den deskriptiva statistiken visar även svenska börsnoterade företags genomsnittliga CSR-ranking. / The reason that this study was conducted is to study whether Swedish listed companies with greater representation of women on the board have a higher CSR-ranking. The study has applied a quantitative investigation with a deductive approach since it is based on previous research and theories. The Critical Mass theory´s critical mass has been used as a breaking point, which states that a board that is composed of three or 30 precent women has a greater work with sustainability-based activities. Through statistical calculations in the form of independent t-test, differences have been investigated between two types of companies; those who fulfill the theory of the critical mass versus those who do not fulfill the critical mass. The result that the study has accomplished is that there is statistically significant difference between the groups of companies. Furthermore, the results of the study show that it is possible to claim covariation between the presence of female board directors and increased CSR-ranking. Other statistical research that has been conducted are of descriptive nature which aims to answer how Swedish listed companies’ boards are composed and how high the presence of women is. The descriptive statistics also show the average CSR-ranking of Swedish listed companies.

This study aims to investigate how the proportion of female leaders on corporate boards affects firm financial performance during crises. The study investigates Swedish mid-cap and large- cap companies during COVID-19. The years observed are 2018-2021, where the two first years served as the pre-crisis periods, while the two latter as the crisis period. The sample includes 266 companies listed at Nasdaq Stockholm. Regression analysis is performed to investigate if there is a more positive relationship between the proportion of women on corporate boards and firm financial performance during a crisis. The firm financial performance measurements used are return on equity, return on assets, operating margin and Tobin’s Q. Moreover, in accordance with critical mass theory, the study examines if there is a significant relationship between a proportion of at least 40 % women on the board of directors, and financial performance during a crisis. The results of the study show no significant results for either a stronger relationship between the proportion of women and firm financial performance during a crisis or a threshold of 40 % proportion of women on the board. The study contributes to the current literature by expanding the research on gender and crisis management on a corporate level as well as explores the relationship between female board directors and firm financial performance in the Swedish market which has not been executed previously.

More companies have responded to the call for action, increasing their attention to the 17 Sustainable Development Goals. Corporate governance structures have proven to have an effect on how well companies are able to facilitate a sustainable trajectory, all influenced by values and norms. Sweden is part of what many views as the ‘next supermodel’ regarding social welfare and sustainability awareness based on a collectivist mindset. In contrast, the US fundamentally believes in the American dream of free enterprise, which has resulted in a more shareholder oriented view.   This study aims to research whether board composition mechanisms such as board gender diversity, board independence, inclusion and CEO duality impact the CSR initiatives, measured through ESG score, of Swedish and US Large Cap companies listed on OMXS and S&P 100. Moreover, it strives to investigate plausible reasons for differences between Sweden with the Nordic corporate governance model and the tier-1 model corporate governance model the US have. Even if ESG is a well-studied area, previous research does not find any consensus since earlier studies find negative, positive and non-significant results. Furthermore, many studies tend not to go beyond firm-level factors and overlook country-level factors such as national culture.   The study consists of 165 Large Cap companies, where 83 are Swedish and 82 are from the US. The chosen research method is quantitative, based on unbalanced panel data from 2020-2022. ESG score is used as the dependent variable, and the independent variables are the proportion of women board of directors, the critical mass of women directors, the proportion of independent directors, inclusion and CEO duality. The control variables consist of board size, asset size, return on assets, leverage, board-specific skills, and the number of employees. To control for country-level factors, GDP is applied. The regression also applies fixed effects for year and sector.   The data analyses are done with two robust and one standard GLS model with random effects, where the regression analyses are divided into two parts. Part I combines Swedish and US Large Cap companies, and Part II separates the two countries. The results for Part I show no significant relationship between ESG score and either board gender diversity, the critical mass, inclusion or CEO duality. The degree of board independence shows a significant positive effect on ESG scores. Part II conveys that there are fundamental differences between Sweden and the US. For example, while board independence shows a significant positive relationship in Sweden, it presents a non-significant negative relationship in the US. In addition, GDP shows significance in both models indicating that country-level factors matter, and it is evident that the explanatory power of the regressions differ. Thus, it is evermore likely that other factors, such as national culture, potentially impact companies’ corporate social responsibility.

Underrepresentation av kvinnor i styrelser är ett omtalat samhällsproblem. För att inkludera kvinnor och skapa ett styrelserum av mångfald har kvoteringar implementerats i EU. Trots kvoteringsdirektiv om en styrelse där 40 procent ska bestå av kvinnor, uppfyller bolagsstyrelser i Europa inte målen. Incitamenten för en mer jämställd styrelse är, förutom kvinnlig representation och rättigheter, finansiell lönsamhet. En god bolagsstyrning är viktigt för en effektiv ekonomisk hälsa och utveckling och lönsamhet. Könsdiversitet tenderar att öka ekonomisk tillväxt. Trots att fördelar för lönsamhet tillsammans med jämställdhet konstaterats återfinns ofta en ojämn könsfördelning bland bolagsstyrningen i börsnoterade bolag. Idag finns ett flertal studier om könsdiversitet i styrelser kopplat till lönsamhet med blandade resultat. Studierna analyserar ofta en mängd bolag där sektorn banker exkluderas. Banker har en betydande roll i samhället och är viktig för ett lands ekonomiska tillväxt. Studien syftar därför till att analysera om inkludering av kvinnor i bolagsstyrelser har en påverkan på europeiska bankers finansiella lönsamhet. Genom studien lyfts teorierna agentteorin, kritiska massanteorin och intresseteorin för att belysa olika perspektiv av ämnet. Där analyseras och diskuteras hur stor andel kvinnor styrelsen bör utgöra för att kunna göra skillnad samt mångfaldens påverkan på gruppen och resultatet. I studien genomförs analyser på de finansiella lönsamhetsmåtten ROA och Tobins Q. Studiens resultat påvisar genom analyserna att ett positivt samband finns mellan kvinnor i styrelser och finansiell lönsamhet. Analysen testar ett flertal variabler där bankernas storlek, styrelsens storlek och likviditet tas i beaktning. Analysen påvisar även att fler variabler har inverkan på lönsamheten. Studien kan genom resultatet påvisa att kvinnor i styrelsen har en påverkan, men framför allt att mångfald tenderar att öka lönsamhet. Jämställdhet är ett samhällsproblem och belyses genom studien där lika förutsättningar och kvinnors egen makt lyfts. I studien påvisas att inkludering av kvinnor i styrelser tenderar att öka lönsamheten hos europeiska banker. Detta lyfter att incitamentet finns att inkludera kvinnor för en finansiell lönsamhet, men även för jämställdhet. / Underrepresentation of women in boardrooms are societal issues. To include women and create a diverse boardroom, quotas have been implemented in the EU. Despite directives requiring boards to consist of 40 percent women, European corporate boards fail to meet these goals. Incentives for a more gender-balanced boardroom include, in addition to female representation and rights, financial profitability. Good corporate governance is crucial for effective economic health, and development, and profitability. Gender diversity tend to increase economic growth. Despite benefits for profitability along with gender equality, an uneven gender distribution is often found among corporate boards in listed companies. Today, there are numerous studies on gender diversity in boards linked to profitability with mixed results. These studies often exclude the banking sector. Banks play a significant role in society and are important for a country's economic growth. Therefore, the study aims to analyze whether the inclusion of women in corporate boards affects the financial profitability of European banks. The study highlights the theories of agency theory, critical mass theory, and stakeholder theory to illuminate different perspectives on the subject. The study analyzes and discusses what proportion of women the board should consist of to make a difference, as well as the impact of diversity on the group and the outcome. In the study, analyses are conducted on the financial profitability measures ROA and Tobin's Q. The results of the study demonstrate a positive significant relationship between women on boards and financial profitability. The analysis tests several variables, including bank size, board size, and liquidity. The analysis also indicates that several variables affect profitability. The study's results can demonstrate that women on the board have an impact, but primarily that diversity tends to increase profitability. Gender equality is a societal issue highlighted in the study, where equal opportunities and women's empowerment are emphasized. The study shows that the inclusion of women on boards tends to increase the profitability of European banks. This highlights the incentive to include women for financial profitability, as well as for gender equality.