Female directorship and bank performance: a meta-analysis
Summary
As the theoretical and more importantly empirical literature indicate no consensus on how female directorship is related to bank performance while consensus on how female directorship is related to bank performance is very relevant, we aimed to find what the general evidence is on how female directorship is related to bank performance by synthesizing all the existing empirical evidence. Moreover, we aimed to examine what caused the lack of consensus on how female directorship is related to bank performance. By examining the Hedges-Olkin Meta- Analysis (HOMA) and Meta-Analytic Regression Analysis (MARA) results, we could draw relevant conclusions as to how female directorship is related to bank performance and as to what variables moderate the relationship between female directorship and bank performance. In the end, we first of all found that female directorship and two of the three most commonly employed measures of bank performance, videlicet ROE and Tobin’s Q, are positively related. Logically, we found that female directorship and bank performance are positively related. Hence, we found support that female board members promote better bank performance. Secondly, we found support that the board-level variables board size, board independence and CEO duality combined moderate the relationship between female directorship and bank performance. More specifically, we found that board size and board independence positively moderate the relationship between female directorship and bank performance, while CEO duality negatively moderates the relationship between female directorship and bank performance. However, we only found support that CEO duality individually moderates the relationship between female directorship and bank performance. This Master Thesis thus offers insights for banks to improve the gender diversity in their boards, thereby putting an end to the ‘old boys’ club’ culture and improving equality of opportunity for at least as qualified women.