The influence of gender of the board of directors on the financial performance of Australian public companies

The aim of this research is to investigate the influence of gender of the board of directors on the financial performance of Australian publicly listed companies, in order to establish if there is a relationship between the number and percentage of women on the board and firm’s financial performance. The starting point for this study is to understand the board of directors and their responsibilities, then to investigate some of the previous studies in this field and their findings. Using the resource based theory the hypothesis that firms employing greater percentage of women on their boards will experience relatively better financial performance is developed. <br><br>The findings identify that the number and percentage of women on board have a positive relationship with firm’s financial performance in three of four of the financial measures that have been tested (net profit after tax, increase on total equity, capital increase and market value).<br><br>The study also indicates that the number and percentage of women on Australian boards remains low compared with other countries like US, UK and Canada. The study considers some of the reasons behind the low representation on women on Australian boards and suggests ways for women and companies to improve this percentage.<br>