(Honors Thesis under the direction of Dr. Allison Schlobohm)

Corporate board diversity has become a focal point in governance discussions, particularly following changes involved in the Nasdaq Board Diversity Rule. This study examines the correlation between board gender diversity on a sample of Nasdaq-listed companies and short-term financial performance using annualized stock returns and yearly return on assets (ROA) data. This study aims to investigate whether firms that comply with the Nasdaq rule and voluntarily disclose board diversity exhibit measurable financial advantages in terms of annualized returns and ROA. This study considers how the two-year period for the Nasdaq Board Diversity Rule (2021-2023) may cause limitations in understanding the impact of increased gender diversity on boards. These findings found that increased gender diversity does not decrease short-term financial returns in terms of annualized returns or ROA. This rule was recently invalidated, but more research should be conducted on its long-term financial impacts.