The business case for women leaders: Meta-analysis, research critique, and path forward

Abstract

Since the 1990s, a growing body of research has sought to quantify the relationship between women’s representation in leadership positions and organizational financial performance. Commonly known as the “business case” for women’s leadership, the idea is that having more women leaders is good for business. Through meta-analysis (k = 78, n = 117,639 organizations) of the direct effects of women’s representation in leadership (as CEOs, on top management teams, and on boards of directors) on financial performance, and tests that proxy theoretical arguments for moderated relationships, we call attention to equivocal findings. Our results suggest women’s leadership may affect firm performance in general and sales performance in particular. And women’s leadership—overall and, specifically, the presence of a female CEO—is more likely to positively relate to firms’ financial performance in more gender egalitarian cultures. Yet taking our findings as a whole, we argue that commonly used methods of testing the busi...