Work detail

Gender board diversity and its impact on firm performance in the Czech Republic

Author: Bc. David Černík
Year: 2016 - summer
Leaders: doc. Petr Janský Ph.D.
Work type: Bachelors
Language: English
Pages: 51
Awards and prizes:
Abstract: The purpose of this study is to examine the extent of gender inequality on boards of
joint-stock companies and the relationship between gender diversity on board of directors
and the return on assets in the Czech Republic. Using a panel data set of 204 Czech
companies of various sizes over the years 2003 – 2011, we discovered that women are
considerably underrepresented on corporate boards and that the gender board diversity
has not significantly changed over the observed time period. The results of regression
analysis showed a non-significant effect on return on assets for all our gender diversity
measures, even after we accounted for endogeneity of the gender diversity variable in the
form of fixed effects method and two-stage least squares estimator. Economic justification
of potential legislation that should force the companies to appoint more women into board
positions was therefore not found. Moreover, if companies account for underlying cost of
implementing such measures, firm performance might be negatively affected in the short




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