Research Repository

Board Diversity Reforms: Do they Matter for EU Bank Performance?

Arnaboldi, Francesca and Casu, Barbara and Kalotychou, Elena and Sarkisyan, Anna (2019) 'Board Diversity Reforms: Do they Matter for EU Bank Performance?' European Financial Management. ISSN 1354-7798

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We examine the impact of governance reforms related to board diversity on the performance of EU banks. Using a difference-in-difference approach, we document that reforms increase bank stock returns and their volatility within the first three years after their enactment. The type of reform matters, with quotas increasing return volatility more compared to affirmative actions. The effectiveness of reforms depends on a country's institutional environment. The impact on volatility is lower in countries more open to diversity, with common law system and with higher economic freedom. Finally, reforms play a bigger role in banks that have ex-ante less heterogeneous boards.

Item Type: Article
Uncontrolled Keywords: Board diversity reforms, corporate governance codes, bank performance
Divisions: Faculty of Social Sciences > Essex Business School
Faculty of Social Sciences > Essex Business School > Essex Finance Centre
Depositing User: Elements
Date Deposited: 30 Jul 2019 09:14
Last Modified: 03 Feb 2020 15:15

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