Dorota Witkowska, Krzysztof Kompa
Abstract
There is a significant body of literature on gender diversity within senior management. However, the opinions concerning the benefits for the company performance from the increase of the women representation in boards are diversified. The aim of the research is to find out if the presence of women in the governing bodies influences the financial performance of companies, belonging to the main portfolios of the Warsaw Stock Exchange indices in years 2010-2019. The financial performance of companies is measured by the vector multidimensional indicators of firm performance, which are constructed applying set of various individual financial ratios. Meanwhile, to explore the impact of women’s representation on boards on firm financial standing the correlation coefficients are used.
The research was completed for all companies that were continuously listed throughout the research period and that had complete records of the selected financial indicators. Findings does not prove a positive correlation between an increase in the share of women on boards and better financial performance of companies. However, it should be noted that the fractions of women on boards of examined companies were negligible and very far from the so-called critical mass, which could have influenced the obtained results.