Gender diversity and financial performance in Mexican stock companies

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Published: Apr 29, 2023
Updated: 2023-04-29
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2023-04-29 (6)
DOI: https://doi.org/10.17163/ret.n25.2023.10
Keywords:
Corporate finance, gobernance, behavioral finance, financial performance, gender diversity, women on boards, corporative decision making, critical mass theory

Main Article Content

Beatriz Rosas-Rodríguez
https://orcid.org/0000-0003-3093-7075
Michael Demmler
https://orcid.org/0000-0002-1629-5814
Lizeth A. Razo Zamora
https://orcid.org/0000-0002-8366-5416

Abstract

since profit maximization is the main objective of private companies, it is important to know how the behavior of some agents caninfluence decision making within the company. The objective of this document is to estimate if gender diversity on the board of directors has anyeffect on the financial performance of Mexican stock companies. We use a sample of Mexican non-financial companies listed on the Mexican StockExchange and part of the IPC Index during 2011-2021. Four regression models were used: panel data regression, OLS2S regression, GMM system, and DiD. Results show that the presence of only one woman on the board of directors had a negative effect on ROA and that recommendation forfemale inclusion on boards had an effect on the presence of women on the boards of directors. These results support Critical Mass Theory abouthow in biased groups women are symbols, and their presence has negative or no effect. In order to have an effect, the number of women on the board of directors must increase.

Article Details

Issue
Vol. 13 No. 25 (2023): (April-September)
Section
Miscellaneous Section
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