The Impact of the Norwegian Gender Quota on Firm Risk

Abstract: We investigate the Norwegian gender quota, implemented for Norwegian listed firms’ boards in 2006, and its impact on firm risk. Using a difference-in-difference model, we find that the increase in female board representation has little impact on firm risk-taking; if anything, it increases firm risk in the long-run. Our finding supports the view that, although women are more risk averse than men in general, female board members are a group of women with a lower degree of risk aversion compared to the common female population.