Gender board diversity and its impact on firm performance in the Czech Republic
| Thesis title in Czech: | Genderová diverzita ve statutárních orgánech firem a její vliv na výsledek firmy v České republice |
|---|---|
| Thesis title in English: | Gender board diversity and its impact on firm performance in the Czech Republic |
| Key words: | Genderová diverzita, Finanční výsledek společnosti, Vedení společnosti, Představenstvo, Dozorčí rada |
| English key words: | Gender diversity, Firm performance, Corporate governance, Executive board, Non-executive board |
| Academic year of topic announcement: | 2014/2015 |
| Thesis type: | Bachelor's thesis |
| Thesis language: | angličtina |
| Department: | Institute of Economic Studies (23-IES) |
| Supervisor: | prof. Petr Janský, Ph.D. |
| Author: | hidden - assigned by the advisor |
| Date of registration: | 04.06.2015 |
| Date of assignment: | 08.05.2016 |
| Date and time of defence: | 14.06.2016 08:00 |
| Venue of defence: | IES, m 314 |
| Date of electronic submission: | 13.05.2016 |
| Date of proceeded defence: | 14.06.2016 |
| Opponents: | Mgr. Lenka Dvořáková Švejdová |
| URKUND check: | |
| Guidelines |
| Topics Characteristics.
Recently, there has been many anti-discrimination initiatives all around the world that tackle the issue of gender diversity on boards and try to set quota on number of women in leadership positions of companies. Policymakers argue that board diversity is potentially positively correlated with company performance and has many other merits. Statistics of European Union shows that average share of woman on boards of publicly listed companies in October, 2015 reached 15 % for executive boards and 25 % for non-executive boards, hence the inequality is significant. The Czech Republic ranks well below the EU average with 9% and 11% respectively. The aim of this thesis is to analyze and collect data on number of women on boards of the Czech companies and show the impact that number of woman on boards has on performance of these companies. Several researches were conducted on this topic but only for data from USA, Scandinavian countries and Spain. Methodology. In the first part I will discuss the extent of gender diversity on boards of directors in the Czech Republic. Then using the data, I will present econometric model that shows the change of return on assets (measure of firm performance) with increasing gender diversity on boards holding other variables such as board size and sales fixed. In the sample I will have to control for both unobserved firm heterogeneity and reverse causality (we do not know if good performance of the company attracts female board members or female board members increases company’s performance) using instrumental variable method. Subsequently I will split data and compare the results with respect to type of industry and size of the company. Hypotheses: 1) Gender board diversity in the Czech Republic is improving . 2) Gender board diversity has positive impact on firm performance. 3) Certain Industries attracts more female board members. 4) Companies with foreign owners have more female board members. 5) There is no reverse causality in the relationship between gender board diversity and firm performance. |
| References |
| References:
1) Adams, R., and Ferreira, D. (2009). "Women in the boardroom and their impact on governance and performance." Journal of Financial Economics, 94(2), 291–309. 2) Daunfeldt, S. O., and Rudholm, N. (2012). Does Gender Diversity in the Boardroom Improve Firm Performance? (No. 60). HUI Research. 3) Janský, Krotil. “Bereme ženy na palubu.“ Available at: http://www.otevrenaspolecnost.cz/knihovna/otevrenka/prosazovani-genderove-rovnosti/analyza-zastoupeni-zen-amuzu-ve-verejnych-firmach_bez-orezu.pdf 4) Nina Smith, Valdemar Smith, Mette Verner, (2006) "Do women in top management affect firm performance?A panel study of 2,500 Danish firms", International Journal of Productivity and Performance Management, Vol. 55 Iss: 7, 569 – 593 5) Kevin Campbell, Antonio Mínguez-Vera. “Gender Diversity in the Boardroom and Firm Financial Performance.” Journal of Business Ethics (2008), 83, 435–451 6) Gallego-Álvarez, I., García-Sánchez, I. M. and Rodríguez-Dominguez, L.(2010), 'The infuence of gender diversity on corporate performance', Revista de Contabilidad 13(1), 53 - 88. |
| Preliminary scope of work |
| Topics Characteristics.
Recently, there has been many anti-discrimination initiatives all around the world that tackle the issue of gender diversity on boards and try to set quota on number of women in leadership positions of companies. Policymakers argue that board diversity is potentially positively correlated with company performance and has many other merits. Statistics of European Union shows that average share of woman on boards of publicly listed companies in October, 2015 reached 15 % for executive boards and 25 % for non-executive boards, hence the inequality is significant. The Czech Republic ranks well below the EU average with 9% and 11% respectively. The aim of this thesis is to analyze and collect data on number of women on boards of the Czech companies and show the impact that number of woman on boards has on performance of these companies. Several researches were conducted on this topic but only for data from USA, Scandinavian countries and Spain. Methodology. In the first part I will discuss the extent of gender diversity on boards of directors in the Czech Republic. Then using the data, I will present econometric model that shows the change of return on assets (measure of firm performance) with increasing gender diversity on boards holding other variables such as board size and sales fixed. In the sample I will have to control for both unobserved firm heterogeneity and reverse causality (we do not know if good performance of the company attracts female board members or female board members increases company’s performance) using instrumental variable method. Subsequently I will split data and compare the results with respect to type of industry and size of the company. Hypotheses: 1) Gender board diversity in the Czech Republic is improving . 2) Gender board diversity has positive impact on firm performance. 3) Certain Industries attracts more female board members. 4) Companies with foreign owners have more female board members. 5) There is no reverse causality in the relationship between gender board diversity and firm performance. |
| Preliminary scope of work in English |
| Outline:
1) Introduction 2) Literature review 3) Data analysis 4) Methodology 5) Results 6) Conclusion |