Female directors and firm financial performance: the case of the FTSE 100

This study examines the relationship between gender diversity on corporate boards and firm financial performance. Existing research has focused on the direct link between a proportion of women directors and firm economic outcomes, thus failing to account for possible mediating factors. Examining a panel dataset of 100 companies listed on the UK FTSE100 in the period 2009-2018, we integrated a set of women directors’ attributes as mediators in the relationship between gender diversity and firm financial performance. After controlling for firm characteristics and reversed causality, the research supports the business case for board gender diversity and demonstrates the positive and mediating role of women’s attributes on firm performance.