Board Gender Diversity and Bank Performance

Abstract

This research examines the relationship between board gender diversity and firm performance and risk of financial institutions in the US between 2007 and 2015. The study also examines the effect of the Dodd- Frank Act of 2010 on improving the diversity and inclusion efforts of this is industry. The study shows that board diversity as measured by the percent of women on the board of directors is associated with better corporate performance. While gender diversity appears to improve performance, it does not affect bank risk, which reinforces the notion that diverse banks are not assuming greater financial risk to generate higher returns.