caa a22 4500 605486271 CHVBK 20210128100444.0 cr unu---uuuuu 210128e20151101xx s 000 0 eng 10.1007/s10551-014-2302-9 doi (NATIONALLICENCE)springer-10.1007/s10551-014-2302-9 The Effects of Women on Corporate Boards on Firm Value, Financial Performance, and Ethical and Social Compliance [Elektronische Daten] [Helena Isidro, Márcia Sobral] The European Commission has recently proposed the introduction of legally binding quotas for women on corporate boards of European companies. This proposal has put the spotlight on the question of whether increasing female representation on the board brings economic benefits to the firm. In order to shed light on the issue, this study investigates the direct and indirect effects of women on the board on firm value. We use a simultaneous equation model to estimate the effects of women on the board on firm value, financial performance, and compliance with ethical and social principles adopted by the firm. We find no evidence that a higher female representation on the board directly affects firm's value. However, we find indirect effects. Women on the board are positively related with financial performance (measured in terms of return on assets and return on sales) and with ethical and social compliance, which in turn are positively related with firm value. The findings in this study suggest that greater female representation on corporate boards of large European firms can increase firm value indirectly. Further, part of the indirect effect comes from stronger compliance with ethical principles, something that is not captured by accounting-based financial performance. Springer Science+Business Media Dordrecht, 2014 Board of directors nationallicence Corporate governance nationallicence Ethics nationallicence Financial performance nationallicence Firm value nationallicence Gender diversity nationallicence Social responsibility nationallicence Isidro Helena ISCTE IUL Instituto Universitário de Lisboa, BRU-IUL, Avenida Forças Armadas, 1649-026, Lisbon, Portugal aut Sobral Márcia Deloitte, Lisbon, Portugal aut Journal of Business Ethics Springer Netherlands 132/1(2015-11-01), 1-19 0167-4544 132:1<1 2015 132 10551 https://doi.org/10.1007/s10551-014-2302-9 text/html Onlinezugriff via DOI BK010053 XK010053 XK010000 Metadata rights reserved Springer special CC-BY-NC licence nationallicence 1 research-article jats NATIONALLICENCE NATIONALLICENCE NL-springer NATIONALLICENCE 856 40 https://doi.org/10.1007/s10551-014-2302-9 text/html Onlinezugriff via DOI NATIONALLICENCE 700 1- Isidro Helena ISCTE IUL Instituto Universitário de Lisboa, BRU-IUL, Avenida Forças Armadas, 1649-026, Lisbon, Portugal aut NATIONALLICENCE 700 1- Sobral Márcia Deloitte, Lisbon, Portugal aut NATIONALLICENCE 773 0- Journal of Business Ethics Springer Netherlands 132/1(2015-11-01), 1-19 0167-4544 132:1<1 2015 132 10551