Women on boards of directors and their role in corporate reputation
Gender diversity and its potential effects on several social, ethical or economic variables have been a frequent topic of academic research. Drawing on signaling theory and using a reputation index that is different from the commonly used, this paper re-examines the influence that the presence of women on the board of directors has on corporate reputation using a sample of Spanish firms.
This paper determines that board gender diversity plays an important role in the assessment of a firm’s reputation and demonstrates that the mere presence of a single female director is not sufficient to improve reputation. As our findings suggest, the number of women and the percentage of women on the board are positively associated with corporate reputation, suggesting that a firm could improve its corporate reputation by increasing the number of women on the board.