Purpose This paper aims to examine whether gender diversity in boards of directors (BOD) and executive teams (ET) relates to financial performance in Brazilian financial cooperatives, and whether BOD and ET tenure moderates this link. Set in a large emerging economy aligning with global governance standards on gender representation, this study highlights how women’s leadership supports efficiency and accountability. Design/methodology/approach This study is conducted on a panel of 1,204 cooperatives (2008–2022). Diversity is measured by Blau index and percentage of women. Models are estimated using two-stage least squares (2SLS) with lagged and regional instruments and time effects. Findings Gender diversity in BOD and ET is positively associated with return on assets, with no robust effect for return on equity. Board tenure positively moderates the diversity–performance relationship for both outcomes, whereas executive tenure does not. The moderation is economically meaningful, indicating experience conditions the realization of diversity gains. Research limitations/implications Findings are limited to Brazilian financial cooperatives and two accounting-based indicators. Conceptually, the results sharpen governance theory in member-owned institutions by showing that diversity’s performance effects are layer specific and contingent on experience. Practical implications Balanced board tenure amplifies performance gains from gender diversity. Organizations and regulators should manage renewal to maintain balanced tenure and disclose tenure distributions to realize efficiency gains. Social implications Expanding women’s leadership in cooperatives, especially in underserved regions, supports financial inclusion, ethical conduct and local development, aligning with Sustainable Development Goal 5. Originality/value The authors use longitudinal regulatory microdata from the Central Bank of Brazil on credit cooperatives; 2SLS addresses endogeneity and shows how multilayer gender diverse leadership relates to performance.
Lerner et al. (Mon,) studied this question.