Female Leaders During Crisis : A study about the impact of female board directors on firms’ financial performance during the COVID-19 pandemic

Abstract: This study aims to investigate how the proportion of female leaders on corporate boards affects firm financial performance during crises. The study investigates Swedish mid-cap and large- cap companies during COVID-19. The years observed are 2018-2021, where the two first years served as the pre-crisis periods, while the two latter as the crisis period. The sample includes 266 companies listed at Nasdaq Stockholm. Regression analysis is performed to investigate if there is a more positive relationship between the proportion of women on corporate boards and firm financial performance during a crisis. The firm financial performance measurements used are return on equity, return on assets, operating margin and Tobin’s Q. Moreover, in accordance with critical mass theory, the study examines if there is a significant relationship between a proportion of at least 40 % women on the board of directors, and financial performance during a crisis. The results of the study show no significant results for either a stronger relationship between the proportion of women and firm financial performance during a crisis or a threshold of 40 % proportion of women on the board. The study contributes to the current literature by expanding the research on gender and crisis management on a corporate level as well as explores the relationship between female board directors and firm financial performance in the Swedish market which has not been executed previously.