Board Diversity: Current State and Future Avenues

Abstract

Purpose: This study reviews the literature on board diversity and addresses three research questions: What are the demographic characteristics of the literature regarding board diversity? What is the current state of literature in terms of thematology? What are the key areas of future research on Board Diversity? Design/Methodology/Approach: We attempted a systematic literature review of 140 studies published in 2015-2021. Five criteria have been employed to identify characteristics of the literature on board diversity and two criteria to identify key themes that have been studied in conjunction with board diversity. We guide future research through the analysis of the answers to the questions above and through proposals from studies reviewed. Findings: Board diversity has been studied mostly in developed countries and within an empirical framework. Most research is concerned with the effect of board diversity on firm’s performance (financial and sustainability performance). Further, there are no conclusive results as to what extend diversity facilitates firms’ operations. Future research should employ additional methodologies and data sources to fully explain the impact of board diversity on business and finance. Originality: This study is the first one trying to map the themes that board diversity has been studied in conjunction with, for the last seven years and presents current trends, challenges, and avenues for future research. Practical Implications: Practitioners and policymakers could benefit from our study, as we present key challenges to board diversity for the present and the future.