The Effect of Board Diversity and Agency Costs on Firm Value An Econometric Study of CAC40 Index Companies

Abstract

This study aims to examine the effects of board diversity and agency costs on firm value using a sample of 23 firms listed on the CAC40 Index over the period 2016–2025, based on panel data. Economic Value Added (EVA) was used as a measure of firm value. The explanatory variables included board diversity, represented by gender diversity on the board and foreign board membership, while agency costs were represented by asset turnover. Financial leverage, firm size, and board meetings were also included as control variables. The results revealed a negative and statistically significant effect of gender diversity on the board, agency costs, and the attendance rate of board members at meetings on Economic Value Added. They also showed a positive and statistically significant effect of financial leverage on Economic Value Added, whereas no statistically significant effect was found for foreign board membership or firm size.