The impact of gender diverse boards on firm financial performance in Norway

Using a dataset of 55 Norwegian public limited liability companies listed on Oslo Stock Exchange from 2006 to 2013, a time-series study is employed to analyze the relationship between the gender-diversity of boards of directors and firm financial performance and to further examine if the relation is positively moderated by the number of independent directors, the number of directors holding multiple board seats and the education level of directors. The analysis reveals no significant evidence that firm financial performance is positively impacted by gender diverse boards of directors. For Tobin´s Q, there even is a negative relationship of gender diversity of boards of directors and firm financial performance. Neither is the relationship significantly moderated by independent directors, multiple directorships or education. The results of this paper therefore support the findings of a number of other studies which did not find any significant link between gender diversity of corporate boards and firm performance neither. Practical implications derived from these results are that decision-makers in society and politics need to be aware of the empirical evidence suggesting a non-existing or even negative impact of quota laws for gender diversity of boards of directors on firm financial performance.