Diverse Boards

Diverse Boards

By
David F. Larcker, Brian Tayan
CGRI Research Spotlight Series. Corporate Governance Research Initiative (CGRI), April
2016

This Research Spotlight provides a summary of the research literature on whether companies with diverse boards (in terms of background, gender, or ethnicity) exhibit better performance and governance quality than companies without diverse boards.

It reviews the evidence of:

  • The relation between diversity and corporate performance
  • The relation between diversity and compensation
  • The relation between diversity and governance quality
  • The impact of mandatory quotas
  • The impact of diversity on group performance

This Research Spotlight expands upon issues introduced in the Quick Guide “Board of Directors: Structure and Consequences.”