Does board diversity matter for innovation performance? : evidence from the world’s most innovative firms

Abstract

In this paper, we study the impact of board diversity, considering both surface-level (gender and ethnic) and deep- level (educational and functional) diversity, on innovation performance. To empirically assess this impact, we collect data on the world's 100 most innovative companies according to Forbes 2018’ ranking. The results suggest that gender diversity and ethnic diversity do not influence innovation performance. We also find that moderating gender and ethnic diversities by knowledge (educational and functional diversity) do not impact innovation performance. However, the results show that board size, as well as firms’ sector and region, have a significant influence on innovation performance.