Abstract
This academic paper investigates the impact of gender diversity on the performance of the US banks before and after the government's bailout initiatives. Based on critical mass theory, the study provides comprehensive empirical evidence that the relationship between board gender diversity and bank performance is contingent on a specific level of gender diversity on the board. The research establishes an optimal proportion of women on boards that enhances bank performance and reconciles mixed findings from previous research on this topic. The research findings suggest that a U-shaped relation between the proportion of women on the board and bank performance. This study validates that critical mass theory is applicable in corporate governance and that an optimal proportion of women on boards enhances bank performance.