The Relationship between the Presence of Women in the Directing Board with the Firm Financial Performance and the Risk (on the Listed Companies in Tehran Stock Exchange)

In terms of accounting, management, and in behavioural and psychological research, a remarkable difference has long been expressed based on gender in leadership style, communicative skills, risk avoidance and decision-making. Therefore, the presence of these differences and their potential aftermaths has attracted the attention of the shareholders to the management of the company affairs based on gender diversity. The objective of this study is investigating the relationship between the presence of women in the directing board and the improvement of the financial performance and decrease in risks in the stocks. To test hypothesis, 450 firm-year were selected from 2008–2012. The current study is applied in purpose and is quasi-experimental in data collection. With doing the common root tests, the incompatibility variance, and the Chow test for the type of model, the combinational data were determined. The companies that use women in their directing board have better performance and less risk. Thus, the investors are advised to pay specific attention to the presence of women while making financial decisions and choosing the directing panel.