Effect of gender diversity on firm performance: empirical study from Europe and Nordics

Abstract

My study examines the relationship between firm performance and gender diversity in Europe and in Nordic countries. I perform the analysis using ordinary least squares (OLS) and firm fixed effects regression. I measure the firm performance by two different dependent variables, Tobin’s Q and ROA. My data is an unbalanced panel data from between 2015 and 2019 and from 17 different European countries. It consists of 3,603 firm-year observations for the Europe dataset and 535 firm-year observations for the Nordics dataset. In Europe, I find a positive significant effect of gender diversity on firm performance. In Nordics, the effect of gender diversity is insignificant on firm performance.