Board gender diversity and financial stability COVID-19 vs pre-COVID-19 era

Abstract

Purpose This paper aims to investigate the impact of board gender diversity (BGD) on firm financial stability during the COVID-19 pandemic compared to the pre-pandemic period. Design/methodology/approach Difference-in-differences method was used for a sample of 891 US companies observed from 2018 to 2021. Findings The results indicate significant negative relationships between BGD and financial stability. The authors put in evidence a nonlinear relationship between BGD and financial stability. Also, the authors found that internal women directors as well as external ones decrease financial stability. Practical implications The results emphasize the beneficial effect of having more women on corporate boards during health crises and suggest that policymakers should take measures to promote BGD. Originality/value This paper highlights the impact of BGD on financial stability and provides additional evidence on the usefulness of BGD as an effective tool for crisis management.