Title: Examining the influence of gender and ethnic diversity on bank performance: empirical insights from the USA

Authors: Evangelos Varouchas; Stavros Arvanitis; Emmanuel Mamatzakis; George M. Agiomirgianakis

Addresses: Department of Accounting and Finance, Hellenic Mediterranean University, Heraklion, 71410, Greece ' Department of Accounting and Finance, Hellenic Mediterranean University, Heraklion, 71410, Greece ' Department of Management, Birkbeck Business School, Birkbeck College, University of London, Malet St, London WC1E 7HX, UK; Department of Accounting and Finance, Hellenic Mediterranean University, Heraklion, 71410, Greece ' Department of Accounting and Finance, Hellenic Mediterranean University, Heraklion, 71410, Greece; School of Social Sciences, Hellenic Open University, Patras, Greece; Hellenic Scientific Institute on the Economics of Education and Life-Long Learning, Research and Innovation, Athens, Greece

Abstract: This research investigates the influence of boardroom gender and ethnic diversity on US banks' performance during the 2016-2021 period. Employing the GMM estimation technique, we address the pervasive issue of endogeneity that has posed challenges in previous research within this realm. Our findings suggest positive individual effects of gender and ethnic diversity on bank performance. Nonetheless, the interaction effects mitigate bank performance. Furthermore, quantile regression findings unveil that the influence of boardroom gender and ethnic heterogeneity differs in high-performing and low-performing banks. We also find that the beneficial impact of gender and ethnic diversity on bank value is attenuated during periods of uncertainty. Additionally, we report that societal factors moderate the relationship between boardroom heterogeneity and bank performance. However, setting diversity quotas does not affect the baseline results.

Keywords: corporate governance; board gender diversity; board ethnic diversity; uncertainty; crisis; quotas; social norms; efficiency; bank performance; USA.

DOI: 10.1504/IJBAAF.2024.144602

International Journal of Banking, Accounting and Finance, 2024 Vol.14 No.4, pp.513 - 558

Received: 20 Mar 2024
Accepted: 09 Dec 2024
Published online: 24 Feb 2025 *

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