Gender diversity in the Boardroom and firm performance: The case of Czech Republic

Yana Kurdova

Master's thesis

Abstract:

In modern practice of corporate governance, one of the most discussed topics in the analysis of the composition of the board of directors (BoD) is the issue of including women in it. Despite the growth in the number of empirical studies focused on substantiating the role of women in improving financial performance of companies in Europe, America and Asia, gender issues in relation to Czech companies have been insufficiently covered. Thereafter, this thesis investigates the relationships between the share of women on the boards of Czech companies and the ROA & ROE of the firms, that are estimated using multiple regression models. The most crucial findings presented in this research are that female executives continue to constitute a minority in the firms, despite the observed positive correlation between the share of women and firm’s profitability. Overall, results are in-line with available prior studies investigating the link between share of women on the board/ in the companies in general and financial performance of said companies. Finally, this thesis extends academic literature on gender diversity within companies in Czech Republic by providing empirical verification of significance of female presence in the governance of the firms. Additionally, strategic initiatives in facilitating female participation in corporate governance were evaluated and proposed.

Abstract:

In modern practice of corporate governance, one of the most discussed topics in the analysis of the composition of the board of directors (BoD) is the issue of including women in it. Despite the growth in the number of empirical studies focused on substantiating the role of women in improving financial performance of companies in Europe, America and Asia, gender issues in relation to Czech companies have been insufficiently covered. Thereafter, this thesis investigates the relationships between the share of women on the boards of Czech companies and the ROA & ROE of the firms, that are estimated using multiple regression models. The most crucial findings presented in this research are that female executives continue to constitute a minority in the firms, despite the observed positive correlation between the share of women and firm’s profitability. Overall, results are in-line with available prior studies investigating the link between share of women on the board/ in the companies in general and financial performance of said companies. Finally, this thesis extends academic literature on gender diversity within companies in Czech Republic by providing empirical verification of significance of female presence in the governance of the firms. Additionally, strategic initiatives in facilitating female participation in corporate governance were evaluated and proposed.

Keywords

female leadership, financial performance of the company, ESG, women on the boards of directors, OLS regression

Keywords

ESG, female leadership, women on the board of directors, financial performance of the company, OLS regression

Language used: English

Date on which the thesis was submitted / produced: 15. 5. 2023

Thesis defence

• Date of defence: 21. 6. 2023
• Supervisor: Ladislav Tyll
• Reader: Natálie Badie

Vysoká škola ekonomická v Praze

Master programme:
Management