Study On Relationship Between Proportion Of Female Board Member And Firm Performance

Director board system has been the core of corporate governance, its composition have an important impact on the role of the Board play. There has been a lot of literature about the relationship between board composition and corporate performance, but the gender element as board diversity, slowly being studied in recent years. The gender elements received less attention because the rate of female directors has been relatively low. However, with the development of the times, countries have been put forward relevant policies to encourage or force to increase the number of women directors. The foreign scholars have also made a larger development in this filed. Therefore, the paper selects the perspective of gender to study the corporate performance.Firstly, the paper reviews the theory about Board Composition and Corporate Performance, introducing the gender difference and sexism in the workplace. Then summarize the literature at home and abroad. After that, the paper pick up1123sample companies from2289Chinese listed companies to assess the proportions of the female members in the superstratum management. The results show that the proportion of women in the members of the board directors is low, only15.93%, but the educational level of women directors is quite well.This paper analyzes the influence of female director to the biard behaviors and corporate performance. Besides, this paper discusses the influence of the education of female director on companies’performance. The paper use the frequency of board meeting to measure the board behavior and the ROE PER PB Tobin’s Q to value corporate performance, empirical study of the impact of the proportion of women directors and their education levels on board behavior and company performance.Studies found a positive correlation between the proportion of female directors and the frequency of board meetings. The relationship between the proportion of women directors and accounting performance variables (ROE and EPS) is not significant, but with the market performance variables (PB, Tobin’s Q) presents no significant negative correlation, indicating that women board directors proportion have some negative impact on corporate performance. However, the level of education of women directors to weaken this negative impact. The study also found that the number of female directors will affect their role to play. In the company having three more female directors, the female will play better.After analyzing the relationship between female directors and corporate performance, the paper pointed out that the reason for the low proportion of women directors of our company, and explain the negative impact of female director on corporate performance,The paper offering new perspectives for the study of board structure brings help to the study of Chinese women directors. In the study of the relationship between female directors and company performance, not only proceed from the perspective of gender, but also used the education of female director to analysis, enriching the statistical analysis process.