Gender Diversity on Corporate Boards: Do Women Contribute Unique Skills?

2016/05/01 by Daehyun Kim, Dae Hyun Kim, Laura T. Starks · 493 citations
Business, Management and Accounting · Social Sciences · #Accounting #Business #Corporate Finance and Governance #Corporate governance #Diversity (politics) #Economics #Enterprise value #Gender Diversity and Inequality #Gender Politics and Representation #Gender diversity #Law #Management #Political science #Valuation (finance) #Value (mathematics)

paper · doi:10.1257/aer.p20161032

published in American Economic Review 106(5), 267-271 (American Economic Association)

openalex publication_date 2016/05/01 · openalex created_date 2025/10/10 · openalex updated_date 2026/07/31

Abstract

We show that gender diversity in corporate boards could improve firm value because of the contributions that women make to the board. Prior studies examine valuation effects of gender-diverse boards and reach mixed conclusions. To help resolve this conundrum, we consider how gender diversity could affect firm value, that is, what mechanisms could explain how female directors benefit corporate board performance. We hypothesize and provide evidence that women directors contribute to boards by offering specific functional expertise, often missing from corporate boards. The additional expertise increases board heterogeneity which Kim and Starks (2015) show can increase firm value.

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