Corporate Governance: An examination of mandated gender diversity in Norway

Abstract

This thesis demonstrates that the Norwegian 40% gender quota on the corporate boards of public companies did not have a statistically significant negative effect on firm performance. The results of a CAPM regression, using time series data, revel that overtime the increased gender diversity in the boardroom has resulted in positive growth of quarterly stock returns. While the results lack statistical significance, it proves that contrary to many critics; mandated gender diversity in the boardroom does not negatively affect firm performance. The evidence presented in the academic literature demonstrates increased gender diversity in the boardroom enhances the effectiveness of the boardroom performing both its monitoring and advising roles. The results also support a top-down approach to increase female leadership throughout the corporate structure.