Female Presence on Boards of Directors and Firm Risk

Abstract

In this chapter, the impact of board gender diversity on overall firm risk was investigated. Drawing on social identity theory, upper echelons theory, and agency theory, a hypothesis of a negative link between gender diversity on the board of directors and firm risk has been put forward. Using a panel data regression on a sample of large Tunisian companies listed on the Tunis Stock Exchange (BVMT) over the period 2016-2020, the author was able to provide empirical evidences supporting the existence of a significant negative impact of the percentage of women on boards of directors on stock return volatility as global firm risk proxy.