A controversial new law in California requires publicly traded companies headquartered in the state to include at least one woman on their board of directors. Supporters of those types of laws even contend that gender quotas could boost firm profitability.
However, the literature indicates that gender quotas are unlikely to enhance firm performance. What is also shocking is that research argues that quotas may actually be damaging to the presumed goal of increasing the role of women on corporate boards.
No Help for Corporate Profits
Academy of Management Journal the relationship between female board representation and market performance is nearly zero. Similarly, a later study featured in the journal