What is it about?
This study examines whether gender diversity in leadership improves the financial performance of Brazilian financial cooperatives. Specifically, we analyze two key governance groups: the board of directors and the executive team, and investigate whether leadership tenure influences this relationship. Using a large dataset of 1,204 cooperatives from 2008 to 2022, obtained from the Central Bank of Brazil, we measure gender diversity through the Blau index and the proportion of women, and assess performance using return on assets (ROA) and return on equity (ROE). To address endogeneity concerns, we apply two-stage least squares (2SLS) models with instrumental variables. We find that greater gender diversity is consistently associated with higher operational efficiency (ROA), but not with profitability (ROE). Additionally, board tenure strengthens the positive impact of diversity, suggesting that experience helps organizations better leverage diverse perspectives. In contrast, executive tenure does not show a significant moderating effect. Overall, the results indicate that gender-diverse leadership contributes to better governance and efficiency in financial cooperatives, particularly when supported by balanced board experience.
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Why is it important?
Understanding how leadership composition affects performance is critical for improving governance in financial institutions, especially in cooperative models where members are both owners and users. This study shows that gender diversity is not only a matter of fairness or representation, but also has measurable implications for organizational efficiency. The findings highlight that gender-diverse leadership improves operational performance (ROA), reinforcing the role of diversity in enhancing monitoring, decision-making, and accountability. At the same time, the results show that these benefits depend on governance conditions, particularly board tenure, which helps translate diversity into effective outcomes. This is especially relevant for emerging economies like Brazil, where financial cooperatives play a key role in financial inclusion and local development. Expanding women’s participation in leadership can strengthen institutional trust, promote ethical governance, and support more sustainable financial systems. For regulators and practitioners, the study provides evidence to support policies that encourage gender diversity and balanced board renewal, contributing to better governance and long-term performance.
Perspectives
From my perspective, this research reinforces the idea that diversity alone is not sufficient to improve organizational outcomes—it must be combined with the right governance structure. The interaction between gender diversity and tenure shows that experience plays a crucial role in enabling diverse teams to generate value. What I find particularly interesting is the distinction between operational efficiency (ROA) and profitability (ROE). The results suggest that gender-diverse leadership may influence how organizations manage resources and make decisions internally, rather than directly affecting risk-taking or financial leverage. Another important takeaway is the difference between boards and executive teams. The board of directors appears to be the key channel through which diversity translates into performance, highlighting the strategic role of oversight and governance in cooperative institutions. Overall, this study contributes to a more nuanced understanding of diversity by showing that its effects are context-dependent, shaped by institutional characteristics and leadership dynamics.
Arthur Frederico Lerner
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This page is a summary of: Women, tenure and performance: exploring leadership dynamics in Brazilian financial cooperatives, Gender in Management An International Journal, April 2026, Emerald,
DOI: 10.1108/gm-05-2025-0259.
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