Gender diversity and firm performance : evidence from Norway 2010-2014

Abstract

The aim of this master’s thesis is to investigate the impact of gender diversity in firms on firm performance using data from Norwegian firms and municipalities. Gender diversity is measured using three regional gender equality indicators measuring the ratio between men and women’s share in the labour force, the level of gender balanced business structures and the gender distribution among leaders. The first two indicators are used as proxies for gender diversity at the employee level, whereas the latter is used as a proxy for gender diversity at the management level. Firm financial performance is measured by the accounting measures return on assets and return on equity. The variables for firm performance are calculated using detailed firm level data from a population of Norwegian firms. The empirical analysis applies ordinary least square regressions, fixed effects regressions and quantile regressions. The results suggest that the effect of gender diversity on firm performance varies across the distribution of the performance variables. Gender diversity has a larger positive effect on firm performance in high-performing firms, and gender diversity at the management level is only positive for the highest-performing firms.