Gender diversity and firm performance: A multi‐level analysis of Japanese firms

This study analyzes how gender diversity at the board, managerial, and employee levels relates to firm performance in Japan, using panel data from 311 listed companies (2006–2017). We apply instrumental variable estimation to address endogeneity. Across all levels and models, we find no statistically significant association between female representation and performance (measured by Tobin's Q and profit margin). These insignificant results may reflect structural or cultural barriers that limit the impact of diversity. The findings suggest that increasing female representation alone may be insufficient without broader organizational reform and institutional support mechanisms.