Gender Diversity Quota, Innovation and Firm Performance: Evidence from European Listed Companies

Abstract

Hind Naouar*

The board gender diversity quota has gained substantial attention over the past decade in light of the growing regulatory pressure on companies to address the under-representation of women in the board. This study aims to explore the moderating effect of the gender diversity quota in the relationship between R&D investment and firm performance in 12 European countries over the 2011-2021 period. Our results, for a panel data of 589 European listed companies and based on GMM analysis, yield clear evidence that gender diversity quota regulations do not shape the relation between R&D investment and firm performance. Such a finding suggests that the percentage of companies that apply the quota regulations in the European context has remained too low to benefit from the advantages of gender diversity quota regulations.