Impact of Board Diversity on Firms’ Stability: A Study on European Firms

The purpose of this study is to examine the impact board diversity firms on firms’ stability measured by Zscore corresponds Altman related with default risk. To test hypothesis, a linear regression model used 6-year panel data set from year 2013 2018 180 listed 10 economic sectors 22 countries. empirical result shows that size has significant negative impact; members and independence positive stability. Beyond theoretical implications, it some practical implications relevant directors, managers policymakers. findings suggest proper number having can improve value. Finally, offers specific recommendations how may value in order optimize their own society's sustainable development.