Determinants of Iberian companies’ performance: corporate boards and the nonlinearity of gender diversity

• Published in: Gender in management Vol. 37; no. 7; pp. 912 - 932
• Main Authors: Proença, Catarina, Neves, Maria Elisabete
• Format: Journal Article
• Language: English
• Published: Emerald Publishing Limited 22-08-2022
• Subjects: Gender diversity; GMM system; Performance; Portugal; Board structure; Spain
• ISSN: 1754-2413; 1754-2421; 1754-2413
• DOI: 10.1108/GM-10-2021-0304

Purpose
This paper aims to analyze the performance determinants of listed companies in the Iberian Peninsula, focusing on the analysis of the effect of gender diversity and the structure of the board of directors.
Design/methodology/approach
To achieve this aim, the authors analyzed 97 listed companies, of which 23 are Portuguese and 74 are Spanish, between 2015 and 2019. The authors use Arellano and Bond’s (1991) generalized method of moments system model to test the hypotheses.
Findings
The results show an important impact of corporate governance variables on corporate performance. Specifically, board size, average director age and board academic qualifications are crucial to explaining profitability and market value. Moreover, the authors identified a nonlinear relationship between gender diversity and profitability and market value levels due to critical mass theory and quotas that enhance more social justice. The authors concluded that the corporate performance determinants differ depending on the performance measures.
Originality/value
To the best of the authors’ knowledge, this study is the first to analyze the nonlinear effect of gender diversity and board structure (size, educational qualifications and average director age) on the performance of Iberian listed companies as a single market.