Board Diversity's effect on Stock Volatility An empirical study on the Swedish market
Abstract
In recent years, group diversity has become a prevalent topic of discussion with regard to
benefits and drawbacks. This thesis examines the impact of board diversity on stock volatility
using data on board directors in Swedish companies over a ten-year period. Regression
analysis is employed to investigate the relationship between board diversity and stock
volatility. The main finding suggests no significant relationship between board diversity and
stock volatility. However, the sensitivity analysis reveals a negative relationship between
gender diversity and stock volatility, implying that increased gender diversity may reduce
stock volatility. While considering the limitations, particularly the lack of data in the diversity
index, further research with more comprehensive and conclusive data is recommended to
validate or challenge these findings. Incorporating additional variables and exploring their
interactions would deepen the understanding of this complex area. While this study does not
establish a direct impact of board diversity on stock volatility, it offers valuable insights for
investors and implications for corporate and national governance, particularly in relation to
potential future quotas.
Degree
Student essay
Collections
View/ Open
Date
2023-09-15Author
Risberg, Simon
Tegenfeldt, Sanna
Series/Report no.
202309:151
Language
eng