Board of Director Diversity and Firm Financial Performance
This study examines the relationship between demographic diversity on boards of directors with firm financial performance. This relationship is examined using 1993 and 1998 financial performance data (return on asset and investment) and the percentage of women and minorities on boards of directors for 127 large US companies. Correlation and regression analyses indicate board diversity is positively associated with these financial indicators of firm performance. Implications for both strategic human resource management and future research are discussed.
This is the accepted version of the following article: Corporate Governance:An International Review, Volume 11, Issue 2, pages 102-11, April 2003, which has been published in final form at http://onlinelibrary.wiley.com/doi/10.1111/1467-8683.00011/full.