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Gender and Ethnic Diversity in Leadership

Previously, leadership positions were predominantly male, but 50 years ago, the situation began to change significantly. However paradoxical it may seem, there is a proven positive correlation between the proportion of women in company management and these companies’ organizational, strategic and financial success. Gender and ethnic diversity, as determined by a review of the literature on the topic, is an indicator of how well an organization functions. The more women among the company’s executives, the more likely they will thrive.

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This study was planned to assess how women’s number (percentage) affects various company performance indicators. For the purposes of the research, a sample of 50 U.S. technology companies from 2010 to 2019 was identified. Based on an analysis of other similar studies conducted, it was determined that fifty companies were sufficient for the current study’s objectives. Using such a timeframe avoids the potential risks associated with misjudging data against the background of extraordinary economic events. These include both the economic recession of 2008 and the COVID-19 pandemic of 2020-2021. In the future, however, the plan is to use a larger sample to avoid any bias. In addition, to increase the objectivity of the study’s results, it is required to analyze companies separately, depending on their size.

A panel regression analysis indicates that a higher percentage of female managers has a significant and positive impact on the firm’s return on equity. At the same time, it has an insignificant effect on year-over-year stock returns in a more general sense. Specific predictors that were expected to be significant turned out to be negligible. However, this could be explained by the study limitations and possible misspecification of the model.

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StudyCorgi. (2022, November 21). Gender and Ethnic Diversity in Leadership. Retrieved from https://studycorgi.com/gender-and-ethnic-diversity-in-leadership/

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StudyCorgi. (2022, November 21). Gender and Ethnic Diversity in Leadership. https://studycorgi.com/gender-and-ethnic-diversity-in-leadership/

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StudyCorgi. "Gender and Ethnic Diversity in Leadership." November 21, 2022. https://studycorgi.com/gender-and-ethnic-diversity-in-leadership/.

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StudyCorgi. 2022. "Gender and Ethnic Diversity in Leadership." November 21, 2022. https://studycorgi.com/gender-and-ethnic-diversity-in-leadership/.

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StudyCorgi. (2022) 'Gender and Ethnic Diversity in Leadership'. 21 November.

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