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Countries with gender board quotas Countries with gender quotas

Countries with gender board quotas Countries with gender quotas

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Ten countries have established quotas for female representation on publicly traded corporate and/or state-owned enterprise boards of directors, ranging from 33 to 50 %, with various sanctions. Fifteen other countries have introduced non-binding gender quotas in their corporate governance codes enforcing a “comply or explain” principle. Countless ot...

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... 15 countries have included in their respective (often revised) country corporate governance codes the require- ment to report gender diversity recruitment efforts and board gender/diversity composition (i.e., under the codes' ''comply or explain'' principle). (See Table 1 for a sum- mary of legislation on the 10 countries with board gender quotas and Table 2 for a summary of the 15 country cor- porate governance code requirements on female board requirements). There are proposals for gender quotas in publicly listed companies in Denmark, Ireland, the Neth- erlands, South Africa, and Sweden; voluntary targets are in place in several countries including Austria and Poland. ...
Context 2
... the significant size and global scope of the phenomena, there is limited research on gender quotas in the field of corporate governance and business ethics. * Israel requires 50 % for SOEs and 1 female board member for publicly traded firms Legislating a Woman's Seat on the Board Table 2 Countries with codes of good governance that include board gender recommendations Country Date Code name Recommendations Australia January 2011 Corporate Governance Principles and Recommendations ''Establish and disclose a policy with measurable objectives to achieve gender diversity on the board (including an annual assessment of objectives and progress made); Disclose mix of skills and diversity the board hopes to achieve; Disclose % women employees, women in senior executive positions, WBD; Diversity is signified by differences in gender, age, ethnicity, and cultural background, among other factors'' (p. 9) Austria January 2012 (rev.); ...

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... In fact, a huge number of countries worldwide, particularly in EU, have lately taken some form of positive act to address the problem posed by diversification of corporate boards (Ullah et al., 2018). In this case, as seen in the Scandinavian countries, great attention was paid to the passage of national legislation to "strict (enforceable in a court of law)" the challenge of having a representative number of managers in trading companies, on stock exchanges and/or state ‫ـ‬ ‫ـ‬ owned enterprises (Rose, 2007;Terjesen et al., 2015). For instance, "Norway, Finland and Iceland" enacted laws in 2003, 2005 and 2010, correspondingly, demanding 40 percent of board members to be woman. ...
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This article aims to provide a visualization of the problems posed by board-diversity, review the latest developments in board members around the world and identify practical implications from innovative articles published in reputable-databases. By categorizing research on board-diversity to identify research gaps and trends and summarizing outcomes and explaining them based on claims in the literature. We reviewed previous literature on the findings of empirical and theoretical perspectives that support some of the claims about directors' board-diversity in shaping the corporate-governance to provide recommendations for future research. To find distinguished researches from precise literature, the time point spans from 1988 to 2021 and the articles involved in this review are from Web-of-Science. The selection criteria used the tracking keywords: "Board Diversity" and "Diversity of Board", it results with a total of 133 studies. Which are summarized and research gaps are revealed in the claims that need support through theoretical and peda-gogical approaches. We are interested in what they note as one of the revised key findings, where they report that the relation between board ‫diversity and company performance is stronger in corporations that implemented reliable governance than their peers with inadequate governance. We recommend companies to appoint managers of different age groups to allow for greater diversity in values, cognitive abilities, and decision-making experience. Appointing female directors can improve board-diversity by providing a "check and balance" mechanism between different board members. The review saves writers, directors, researchers, and strategists time to research and read, by picking the most excellent and most relevant information on its own and attending it in a focused, easy ‬ to-understand order.
... In general, the board of directors of a company is the body that determines policies for company management and makes decisions on the main issues of the company (Krechovská and Procházková, 2014). Strong corporate governance has been shown to reduce agency problems and encourage managers to operate well (Terjesen et al., 2015). ...
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The board of directors is one of the components of corporate governance used by the company to improve the firm's performance both in the long and short term so that the characteristics of the board become one of the key factors to running a good governance system for the company, even though having a good board composition is not always makes the company have a good performance because of the conflict of interest that occurs between the principal and the manager of the company so that there is a need for an in-depth study of the impact of capital structure on company performance. This study attempts to assess specifically the characteristics of the board (board size, board diversity, and audit committee) owned by the company to capital structure, then confirmed the effect of capital structure on firm performance and firm value by using ROE for performance and Tobin’s Q for firm value. Was used in the study sample 25 a company that had always entered into the LQ45 index within a time frame of 2015-2019. The technique of analysis that was used in this study was Path Analysis. The results of the testing of hypotheses found that board size and audit committee had a positive impact on capital structure, while board diversity had a negative effect on capital structure, then capital structure had a positive effect on firm performance, otherwise, the capital structure had a negative effect on firm value
... Debate on affirmative action and the corporate board members' profiles Institutional and stakeholder theories have drawn attention to the normative and regulatory framework, as well as to the role that national institutions and key social actors play in advancing gender equality (Terjesen et al., 2015). One of the most topical subjects of discussion is the intervention of the state through mandated gender quotas as a way of accelerating WoB representation. ...
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Purpose This study aims to provide a comparative portrait of the profile of men and women in the boardrooms of listed companies (Euronext Lisbon, Portugal) during the first stage of the gender quota law, by comparing the profile of those board members appointed before the mandated quota law and those appointed after it. This study also seeks to contribute to a critical review of the main reservations expressed by some core institutional actors, who initially voiced their concern that it might be difficult to find women in equal conditions to men in terms of their cumulative experience and qualifications to serve as board members. Design/methodology/approach In addition to providing a comparative descriptive analysis of male and female board members’ profiles before and after the mandated gender quota law, an aggregate professional endowments measure (professional endowments Index) is also calculated. Findings The research findings show that, in the first stage of the quota law, men and women appointed as board members after the mandated gender quota law are fundamentally similar in their professional attributes, forming a more homogeneous boardroom than those holding board positions before it. Originality/value This study contributes to the literature on the profile of the men and women serving on the publicly listed company boards in Portugal, by comparing their profiles before and after the mandated gender quota law. This study also fills a gap in the literature, as studies about gender quotas and corporate boards relating to Portugal and Southern European countries in general are still relatively scant. To the best of the authors’ knowledge, this is the first study carried out into the gender quota law on corporate boards in Portugal.
... 13 Prior studies suggest that the timing of the reforms depends on a country's political and social institutions. For instance, Terjesen et al. (2015) find that a country is more likely to establish a gender quota for boards of directors when it has more generous family policies, left-leaning government coalitions, and other gender equality initiatives. Domestic political and social forces are less of a concern for our research question for two reasons. ...
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We examine how boardroom gender diversity reforms impact the monitoring role of institutional investors. Using reforms from 25 countries that aim to improve gender diversity on boards, we find that the reforms increase the association between institutional ownership and subsequent female directorships for foreign investors, but not for domestic investors. This result is driven by foreign institutional investors from countries with a high social equity norm and by foreign pension funds and independent institutions. Furthermore, firms experience improved valuation and profitability following reform compliance. Overall, our findings suggest that boardroom gender diversity reforms empower socially conscious foreign institutional investors to drive value-enhancing governance change.
... In order to achieve gender justice, different strategies need to be applied. Institutional support emerges as a determinant factor to approach social change (Allport, 1954); thus gendersensitive laws are critical in building egalitarian societies (see Terjesen et al., 2015). Nevertheless, structural changes do not necessarily imply social change at every level. ...
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Even though formal processes (i.e., gender quotes) are necessary to achieve gender justice, attitudinal changes (i.e., support of egalitarian social norms) are also essential. The endorsement of sexism and gender stereotypes perpetuate inequality on a daily basis, and can be seen as barriers that prevent societies from reaching social justice. Therefore, changing sexist social norms can be understood as a fundamental step in accomplishing gender justice. With the aim of studying Chileans’ sexist norms, we conducted a survey with a representative sample ( N = 490) exploring levels of sexism and gender stereotypes, as well as support for the feminist movement. Using Latent Profile Analysis, we identified four groups of citizens: (1) a first group that shows high levels of sexism and low support for the feminist movement (9%); (2) a second group, with low levels of sexism and high support for the feminist movement (20%); (3) a third group with high levels of sexism and high support for the feminist movement (65%); and (4) a fourth group with mid-levels of sexism and support of the feminist movement (6%). We called these groups the Sexist, Feminist, Inconsistent, and Moderate Group, respectively. The four groups showed similar high endorsement of gender stereotypes. These results are twofold. First, they hint that although nowadays gender equality seems to be generally accepted, this coexists with a high prevalence of sexist social norms, represented by the inconsistent group being the most prevalent. Second, gender stereotypes are still deeply rooted in Chilean culture, surprisingly even among feminist citizens.
... Despite global efforts to achieve SDG5 targets, there is still a low level of representation of women in management positions in listed companies. However, Terjesen et al. [74] note that there is a significant gap in the representation of women on boards of directors, whereas Pucheta-Martínez [75] observed that developed countries adopt gender equality regulations to ensure greater participation of women in the management of organizations. Reguera-Alvarado et al. [24] analyzing the implications of Quota Laws on Spanish companies found that a higher representation of women on board is positively related to better financial results. ...
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This study examined the influence of the executive board of directors’ gender diversity on the financial performance of listed companies on the Bucharest Stock Exchange, for the period 2011 to 2019. The analysis of the composition and different characteristics of the board and the executive directors proved to be effective tools for corporate governance in countries with an emerging capital market. Therefore, a disclosure index on directors’ characteristics was used to moderate the interaction between gender diversity and financial performance, based on the theoretical framework provided by upper echelon theory. The study contributes to the enrichment of the literature both by using the composite indicator built by applying the multiway PCA method on panel data to express financial performance and by designing the ten EGLS panel models involving five financial indicators and two proxies for gender diversity. The results showed that there is a positive impact of the proportion of women on the executive board of directors on financial performance, measured through the composite index, ROA, ROE, and SOL. A statistically significant impact of gender diversity on financial performance was found only for SOL, in the case of the Blau index. Also, using the random-effects model to perform the panel data analysis, the results showed that a higher executive board size can be associated with better financial performance measured through the composite index, ROA, ROE, and EPS. Practical implications are significant for the board of executives’ composition, the complexity of the relationship with the board, and reshaping governance practices.
... The purpose of this study is to examine potential spillover effects from state government to sport governing bodies within the same state. Specifically, this research looks at the relationship between the gender composition of the parliament and among ministers and gender diversity in the boardroom of sport governing bodies using an institutional framework (Saeed et al. 2016;Terjesen et al. 2015). The research context is Germany which consists of 16 federal states. ...
... Most previous studies investigating the relationship between environmental factors and gender diversity in corporate boards draw on an institutional framework (e.g., Saeed et al. 2016;Terjesen et al. 2015). Following this approach, the actions and decisions of organizations are shaped by their institutional environment (Scott 2014). ...
... Political institutions (e.g., Terjesen et al. 2015) can be state-level drivers of gender diversity in boardrooms. Political pressure, for example through gender quotas, can have a positive effect on the gender composition of sport boards (Adriaanse 2017). ...
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This study investigates the relationship between state politics and sport governance based on an institutional framework and the concept of spillover effects. Specifically, it examines whether spillover effects occur from state parliament and government composition to board gender diversity within sport governing bodies. Organizational-level data from German national and state sport governing bodies were collected (n = 930). They were combined with state-level data on the government composition by gender and political party (parliament, ministers) based on the location of each sport governing body’s headquarter. The results show that on average 20.1% of board members in sport governing bodies are women. Regression analyses indicate that the share of parliamentarians from the Social Democrats and the Green party is positively associated with the share of women in sport governance, while the share of Liberals in the parliament is negatively related. The share of women parliamentarians from the Social party and the share of women Conservative ministers are negatively related to women in sport governance. The findings indicate that women representation in sport governance is linked to state politics, suggesting that spillover effects occur from an organizations’ political environment.
... Yet, as Hughes, Paxton, and Krook note, "the study of corporate quotas is in its infancy" (2017,346), and scholarly lacunae remain. The academic literatures exploring the causes and consequences of corporate board quotas have focused on several aspects: the institutional and political determinants of quotas (Lépinard 2016;Terjesen, Aguilera, and Lorenz 2015;Verge and Lombardo 2015); the success of gender quotas in increasing women on boards (Piscopo and Clark Muntean 2018;Storvik and Teigen 2010); firm financial performance (Ahern and Dittmar 2012;Comi et al. 2020;Ferrari et al. 2021;Pande and Ford 2011); and women's labor-market outcomes and leadership beyond the board (Maida and Weber 2022;Bertrand and Black 2019). However, previous studies have not examined the effects of quotas on company attention to the underlying sources of inequality that make gender quotas necessary, like work-family reconciliation, especially where the state does not provide generous social benefits. ...
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Do corporate board gender quotas increase attention to gender equality in workplace policies? Existing research examines the link between quotas, financial performance, and women’s promotion, but we lack an understanding of how quotas impact the structural determinants of gender imbalance in the workplace. We compare the case of Italy, which adopted a quota in 2011, to a counterfactual country with no quota: Greece. Using a difference-in-difference approach, we analyze the corporate reports of publicly listed companies in both countries over time. We find a 50% increase in post-quota Italian companies’ attention to gender equality issues, especially relating to leadership and family care. This increase is not exclusively driven by the share of women on boards, suggesting that quotas influence the importance that both women and men within firms give to gender equality. Qualitative analysis finds that observed changes are not window dressing: companies developed new equality initiatives after the quota.
... The forty (40) percent gender quota in the board was mandated by Norway first, following which other countries like France and Iceland also made a reservation of 40% females in the listed corporate boards (de Cabo, Terjesen, Escot, & Gimeno, 2019). During 2006 and 2007, the government of Israel and Canada mandated all state-owned enterprises (SOEs) to reserve 50% strength of board for the females (Terjesen & Singh, 2008) and during 2010 and 2011, Italy, Belgium, and Kenya made a reservation of at least 33% females in the board of SOEs (Terjesen, Aguilera, & Lorenz, 2015). In 2007, to increase women's participation in the corporate board, Spain recommended a gender quota law for the first time in European Union. ...
... The recommendation aimed to achieve 40% gender diversity by the end of 2015, yet corporates in Spain failed to attain this target due to its non-mandatory nature. Similarly, between 2008 and 2012, countries like Australia, Germany, Malaysia, Denmark, Nigeria Netherlands, South Africa, and Poland recommended their respective CG codes to fix a gender quota on the corporates' board (Terjesen et al., 2015). Compared to these countries, India is far from bringing transparent gender diversity to the board. ...
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The present study investigates the relationship between board characteristics and a firm value. The study offers new insight into the association between board characteristics and a firm value by examining whether board gender diversity alters the impact of board characteristics on a firm value. The study uses panel data approach on a sample of 39 non-financial firms listed in the S&P BSE SENSEX 50 over 6 years (2014–2015 to 2019–2020). An appropriate model between fixed effect and the random effect was selected using the Hausman test first and two separate regressions were run later, showing the direct effect of board characteristics on firm value, and change in the effect of board characteristics on firm value when board gender diversity was put as a moderator. Consistent with the previous findings (Field, Lowry, & Mkrtchyan, 2013; Vo & Bui, 2017; Gulzar, Haque, & Khan, 2020), the study reveals that board busyness has a significant and positive effect on Tobin‘s Q only, whereas, board meetings and board gender diversity are the factors that leave a significant negative effect on both return on assets (ROA) and Tobin‘s Q. In contrast to existing literature (Chin, Ganesan, Pitchay, Haron, & Hendayani, 2019), we found that the board gender diversity positively moderates the association of board size and board meetings with Tobin‘s Q and ROA, respectively.
... Human capital theory postulates cognitive heterogeneity of board in terms of knowledge, education, skills and abilities as the predictor of organizational outcome (Lajili, 2015;Sarto, 2019). Linking this to gender diversity, researchers suggest that female directors bring unique human capital to firm, and JEL classification -G30, G34, J3 Board human capital diversity thus enhance performance outcome, compared with traditionally male-dominated boards (Terjesen et al., 2015;Terjesen and Sealy, 2016;Catalyst, 2017). ...
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Purpose This study aims to examine the impact of board human capital diversity, measured by educational qualification diversity and gender diversity on the financial performance of Indian firms after controlling corporate governance (CG) and firm-specific variables. Design/methodology/approach This study is based on a panel data set of top 100 listed Indian firms for a period of five years. The authors use Blau index and Shannon index to compute qualification diversity. The authors use three-stage least square (3SLS) model to deal with the potential endogeneity issue in the association of human capital diversity variables and other CG variables with firm performance. Further, the authors adopt generalized estimating equation (GEE) model for robustness check. Findings The authors find a significant positive impact of board’s educational diversity as well as gender diversity on the financial performance of firms. Additionally, they extricate highly significant positive interaction impact of board’s educational diversity and gender diversity on the financial performance of firms. Further, the results indicate a significant positive impact of board size, board independence, ownership concentration, family ownership and audit committee independence on firm performance, while CEO duality exhibits a significant negative impact on firm performance. Originality/value This study fills the existing gap in literature by extending the performance implications of board’s human capital diversity for top listed Indian firms.