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Women on boards: The superheroes of tomorrow?
Abstract
Can female directors help save economies and the firms on whose boards they sit? Policy-makers seem to think so. Numerous countries have implemented boardroom gender policies because of business case arguments. While women may be the key to healthy economies, I argue that more research needs to be done to understand the benefits of board diversity. The literature faces three main challenges: data limitations, selection and causal inference. Recognizing and dealing with these challenges is important for developing informed research and policy. Negative stereotypes may be one reason women are underrepresented in management. It is not clear that promoting them on the basis of positive stereotypes does them, or society, a service.
... In parallel, since Robinson and Dechant (1997) first referred to the "business case for gender diversity" more than 25 years ago, gender diversity has been the subject of public debate, of increasing interest to academics and regulators, and recognized as a value driver for corporate governance (Adams, 2016;Esposito et al., 2023). ...
... According to RDT (Barney, 1991), firms build their competitive strategies on their unique resources and capabilities. From this perspective, the board of directors performs a "resource provisioning role" (Hillman & Dalziel, 2003), providing knowledge, expertise, and networks to the firm (Adams, 2016;He et al., 2021). Thus, the more diverse the board, with different skills, backgrounds, values, and connections, the more able it is to provide critical resources to the firm (Ramon-Llorens et al., 2021;Tunyi et al., 2023). ...
... As directors, women and men differ in their values, skills, backgrounds, and work styles (He et al., 2021). In general, female directors are more sensitive to social issues Rao & Tilt, 2016), more concerned about the well-being of others (Eagly et al., 2003;Esposito et al., 2023), and less tolerant of injustices and inequalities in the workplace (Adams, 2016;Galbreath, 2011;Tunyi et al., 2023). Accordingly, their presence on the board increases perceptions of ethical challenges, such as respect for human rights (Esposito et al., 2023;Hollindale et al., 2019), and encourages attention to vulnerable stakeholder groups (Francoeur et al., 2019). ...
Equality, equity, and nondiscrimination are core human rights and prerequisites for peace, prosperity, and sustainability that require the commitment of all actors. They have received considerable attention from the European Union, leading to the development of a regulatory framework aimed at promoting gender diversity and the disclosure of information on diversity, equity, and inclusion by European companies. Considering the regulatory pressure from the institutional environment of the European Union that characterizes the period 2011–2020, this study aims to analyze the role played by female directors in promoting diversity, equity, and inclusion disclosures of 189 large European companies. Based on international guidelines and recommendations as well as European legislation, we developed a transparency score that assesses the relevance, standardization, reliability, and completeness of the diversity, equity, and inclusion information disclosed by these companies. Using a Tobit regression approach for panel data, we show that board diversity has a positive effect on the information reported by European companies, although this effect is only associated with having at least three female directors or gender‐balanced boards. Moreover, the European institutional context in force since 2014 favors corporate transparency on equality, equity, and inclusiveness practices of European companies and encourages the consideration of the views of minority female directors. The results can improve the understanding of gender equality and corporate transparency regarding diversity, equity, and inclusion decisions made by companies in light of the advent of new mandatory requirements within the EU and the extension of their scope to a wider range of companies.
... This focus is mainly attributed to the implementation of mandatory legislation in countries such as Norway and Spain, which requires more excellent representation of women on boards. Notably, compared to their male counterparts, female directors have the potential to enhance corporate governance across multiple dimensions, including diverse perspectives (Adams 2016), adequate supervision (Gul et al. 2011), and high ethical standards (Chen et al. 2016), among others. These attributes serve as effective means to help firms successfully navigate challenges. ...
... Existing research has explored the impact of board gender diversity on firms from various theoretical perspectives. According to resource dependency theory (Salancik and Pfeffer 1978), board gender diversity can provide diversified modes of thinking for firms (Adams 2016), mitigating the issue of homogenized thought commonly associated with male directors. This diversification enhances alignment with the external environment (Carter et al. 2003), thereby improving the performance of firms. ...
... This study employs three measures to assess board gender diversity. Firstly, adopting a relative perspective, we utilize the percentage of women on boards, a method widely utilized in existing literature (Adams 2016;Chen et al. 2019;Carbonero et al. 2021). Secondly, in absolute terms, the total number of women holding director positions within a firm can also indicate the size or representation of women on boards. ...
This study investigates the impact of board gender diversity on the export resilience of Chinese A-share listed firms from 2009 to 2015. Our findings indicate that board gender diversity significantly enhances firms’ export resilience. The results remain robust across various modifications, including adjustments to the sample period, exclusion of extreme values, utilization of alternative measures for critical variables, addressing endogeneity concerns by adding fixed effects and employing the sex ratio at birth as an instrumental variable. Mechanism tests reveal that enhancing the quality of export products, expanding export diversity, and improving corporate reputation are crucial pathways through which board gender diversity can bolster firms’ export resilience. Finally, heterogeneity analysis shows that the positive effect is more pronounced in older firms and those with higher board educational backgrounds. This effect is also more prominent in firms located in provinces with higher levels of non-state economic and product market development.
... Resource dependency theory further complements this perspective by highlighting the pivotal role of board composition in accessing essential resources and adeptly navigating the complexities of ESG challenges. A board endowed with gender diversity is theorized to amalgamate a diverse array of knowledge, skills and perspectives, thereby bolstering the firm's capacity to effectively address environmental and social issues (Pfeffer and Salancik, 1978;Adams, 2016;Atif et al., 2021). The inclusion of women on boards is emphasized, as their unique attributes are believed to contribute positively to the firm's ESG performance (García-S anchez et al., 2018;Shakil et al., 2020). ...
... The empirical landscape presents a diverse spectrum of findings regarding the impact of BGD on ESG performance. For instance, Adams (2016) and Atif et al. (2021) provide evidence that the inclusion of women on boards influences business decision-making processes, suggesting that gender-diverse boards are more inclined to consider broader societal implications. Arayssi et al. (2020) demonstrated that higher female board representation positively affects ESG reporting in Gulf Cooperation Council (GCC) countries, while Paolone et al. (2024) found, in their study of 96 listed European banks, that BGD was positively linked to ESG scores in the European banking sector. ...
Purpose-This study aims to explore the mediating role of corporate social responsibility (CSR) committees in the relationship between board characteristics and environmental, social and governance (ESG) performance, specifically within the Middle East and North Africa (MENA) region. Design/methodology/approach-Based on a panel of 178 firms spanning 2015-2022, the analysis uses Baron and Kenny's (1986) mediation approach, supplemented by structural equation modeling (SEM) path analysis for robustness. Findings-The findings demonstrate that CSR committees play a significant mediating role in the impact of board size, expertise and gender diversity on ESG performance. Furthermore, the study confirms the direct, positive influence of both board characteristics and the presence of CSR committees on ESG performance, underscoring their strategic importance in fostering sustainability in this regional context. Practical implications-The findings highlight the strategic importance of diversifying and enhancing board skills to improve ESG performance. Companies are encouraged to recalibrate their governance frameworks to leverage the mediating influence of CSR committees and promote sustainable business practices. Social implications-By demonstrating the positive effect of CSR committees on ESG performance, this study aligns with global trends in responsible business conduct and highlights the importance of corporate governance in addressing environmental and social challenges. This alignment is critical for achieving sustainable development goals and reinforcing stakeholder trust in the region. Originality/value-This research provides novel empirical insights into the mediating effect of CSR committees within the MENA region, offering a unique contribution to the discourse on corporate governance and sustainability. By highlighting region-specific governance dynamics that shape ESG outcomes, it deepens the understanding of effective governance practices.
... Women's representation on boards encourages consideration of a broader range of strategic options and takes into account the diverse interests and needs of customers. In addition, the inclusion of women on boards can improve an organization's overall brand image and potentially lead to a positive impact on customer behavior (Light, 2011;Adams, 2016). Their presence also facilitates more nuanced boardroom discussions (Daily & Dalton, 2003). ...
... This should be understood in the socio-cultural context of different countries as well as continents. It is no coincidence that in Europe a lot of discussion, activism as well as legislation took place with respect to women's representation in board (Yang et al., 2019;Adams, 2016). From the tables above, it is evident that female directors have the least impact on corporate risk in Japan. ...
he main objective of this study is to assess the impact of female directors on firm risk in the G6 countries (all G7 countries except Italy, since data for Italy are not available). A total of 4617 firm-year observations were collected from six countries: the United States, Japan, Germany, the United Kingdom, France, and Canada. The firm risk measures (risk1 and risk2) are calculated as the ratio of a firm profitability to volatility of profitability. These risk measures capture the risk-seeking behavior of the firm. These ratios are a comprehensive measure of risk-seeking behavior since they capture the decisions made by the incumbent management related to the firm’s operations. The results show that the presence of female directors beyond a threshold point reduces firm risk in the total dataset as well as in individual countries. Interestingly, Europe as a continent and all European countries individually have the highest impact of the presence of female directors above the threshold. In the case of Japan, the presence of female directors has the least influence on firm risk
... According to Adams (2016), gender studies which have been conducted by consultancy companies agonized from endogeneity hitches. He has postulated that one of the key sources of endogeneity is the reverse causality between the gender-diverse board and organizational performance. ...
... In the presence of endogeneity, we cannot acquire consistent calculations or reliable inferences. According to Adams (2016), gender studies conducted by consultancy companies agonized from endogeneity hitches. He postulates that one of the key sources of endogeneity is the reverse causality between the gender-diverse board and organizational performance. ...
The current research aims to investigate the gender roles of accounting financial expertise (AFE) auditors for the accuracy of financial reporting. By utilizing four measures, namely two forms of real earnings management and two forms of discretionary accruals, we have developed a comprehensive index referred to as the Index of Financial Reporting Quality (IFRQ). Financial statistics were obtained from the annual COMPUSTAT database using Wharton Research Data Services (WRDS). Information related to audit services and accounting financial expertise was acquired from the ‘Institutional Shareholder Services’ (ISS) for the period spanning from 2003 to 2019. Possible endogeneity controlled through the Propensity Score Matching (PSM) technique, i.e. firm-level characteristics between gender diverse auditors and financial reporting quality. Moreover, Generalized Method of Moments (GMM) econometric technique was utilized in order to derive precise and reliable coefficient values. Most important and robust conclusion of the study is that the gender of the auditor matters greatly in impacting the quality of financial reporting. The findings of the present research suggest that the quality of financial reports is enhanced when women with accounting knowledge serve on the audit committee. This study highlights the significance of diversity, not only as a matter of ethical consideration, but also as a concrete advantage in the endeavor to enhance the quality of financial reporting.
... According to Nwude and Nwude (2021), having women on the board can bring a wider range of experience and knowledge, enhancing the decision-making process. Additionally, it is expected that women would significantly impact the board's input and output (Adams, 2016). ...
... Moreover, having women on the boards can provide a source of expertise for other board members (Dwaikat et al., 2021). According to Adams (2016), female directors can enhance a firm's ability to generate profits by leveraging its assets and investments, resulting in higher and sustainable levels of economic growth. ...
Societies have witnessed significant shifts in perceptions of gender diversity and gender equality. Consequently, researchers have increased interest in understanding the impact of board of director (BOD) gender diversity on various aspects of social and economic life, including corporate social responsibility (CSR). Although several studies have explored the relationship between BOD gender diversity and social responsibility, research in this area is still limited and suffers from a lack of consistency in findings. In addition, studying the financial performance as a mediating variable provides a more complex and detailed view of this relationship. This article aims to investigate and analyse the effect of BOD gender diversity on CSRD, either directly or indirectly, by financial performance as a mediator. This study investigates a panel data analysis with a sample of 31 companies listed on the Palestine Stock Exchange from 2012 to 2021. This study used the Baron and Kenny approach to test the mediator effect for financial performance between BOD gender diversity and CSR disclosure (CSRD). The results show a significant positive direct relationship between BOD gender diversity and CSRD, and a significant positive direct relationship between BOD gender diversity and financial performance. Furthermore, the results indicate that financial performance partially mediates the relationship between BOD gender diversity and CSRD in Palestinian companies. These results may encourage companies to promote gender diversity in their structures and strategies and implement policies for recruiting women to corporate boards, which has a positive impact on the financial and social sustainability of the organization.
... Moreover, a positive association between BGD and social performance has become evident [14]. Recent studies, including Adams [65] and Nekhili et al. [63], reinforce the affirmative linkage between BGD and CSR performance. Helfaya and Moussa [59] explore the multifaceted role of female directors, encompassing stakeholder orientation, sensitivity to CSR issues, risk aversion, and diverse perspectives aligned with RDT. ...
... These attributes not only lend legitimacy to firms' operations but also drive socio-ecofriendly practices while prioritizing stakeholder interests [58]. Women have less of a propensity to be risk-takers, which has implications for business decisions [59,65]. In line with the previous literature, RDT and stakeholder perspectives confirm that BGD enhances and promotes the social agenda and recruitment of adept experts in the business field [58]. ...
Amidst today’s globalized economy, embedding sustainable practices into corporate governance frameworks has become important. This era underscores a heightened focus on CSR and sustainability, drawing considerable scholarly and practical interest to the nexus of corporate governance, sustainability initiatives, and corporate labour rights (CLRs). Hence, this study investigates the relationship between corporate sustainability governance initiatives (CSGIs) and CLR practices in India. Despite regulatory efforts, issues such as modern slavery and low wages persist in the country. Drawing on legitimacy, agency, stakeholder, and resource dependency theories, this study examines how CSGIs influence CLR practices. Data from 1212 observations of top Indian listed companies between 2010 and 2021 indicate positive correlations between CSGI dimensions and CLR practices across industries and board CSR orientations. This research underscores the importance of CSGIs in promoting sustainable corporate practices and improving CLRs in emerging economies. It also aligns with the United Nations sustainable development goals (SDGs), particularly SDG 3, SDG 5, SDG 8, and SDG 10. By combining theoretical rigour with practical relevance, this study provides insights for businesses, policymakers, workers, investors, and CSR scholars, contributing to efforts to enhance CLRs in India and beyond. For instance, the study offers actionable guidance for businesses and policymakers aiming to improve CLR practices. It highlights the positive correlation between specific attributes of CSGIs and CLR practices, providing insights for corporate decision-making and emphasizing the importance of aligning operations with the UN’s sustainable development goals. The findings serve as critical decision-making tools for investors concerned with corporate sustainability governance and CLRs to identify ethically responsible companies and mitigate investment risks.
... In addition, according to the resource-based view, social role theory, and agency and critical mass theories, women's presence on boards can bring change to the style of management operation. For instance, women tend to be more prudent than men in their management style, and they have been shown to prioritize the welfare policies of the stakeholders more than that of the shareholders (Adams 2016;Jain and Zaman 2020;Nielsen and Huse 2010). Boards that lack women participation tend to be less involved in considering sustainability and risk management (Bord and O'Connor 1997). ...
... Women's representation on boards is legally required (in the form of a quota) in many European countries (Mensi-Klarbach et al. 2021). Norway, for example, was the first in Europe to implement a gender-balance law with a quota requirement for corporate boards in 2003, and countries such as Sweden, Germany, Italy, France, and Spain quickly followed the trend to increase the representation of WoB (Adams 2016;Clark et al. 2021). Yet, the minimum number of WoB to get a synergetic effect on sustainability performance is unknown. ...
Participation of women on corporate boards has long been a topic of debate in academia and practice. Yet, the threshold of women's participation in a corporate board to obtain a synergetic impact on corporate sustainability performance remains to be examined. Data from 19 European countries, having 2640 firm-year of observation, this study revealed that women on boards positively affect corporate sustainability performance in the European context, with an approximately 30% participation of women on boards (WoB) ensuring synergetic impact. This study further revealed that after the threshold of WoB participation, the market value of companies tends to be negative in the European setting. An indication of investors' reactions. The issue was first examined through the lens of the resource-based view, social role, agency and critical mass theories and then empirically tested. To reach a conclusion, this study employs both static and dynamic econometric models; thus, the finding is consistent and empirically robust. The research findings contribute to the current discussion on corporate governance and corporate sustainability performances issues, especially in the European context, and have implications for researchers, business practitioners, and policymakers.
... Only one statement showed no meaningful difference between male and female opinions [R8: Women are generally risk-averse], with both genders agreeing that women are generally risk-averse. If women are risk-averse, this could lead to less risky corporate outcomes (Adams, 2016). Female respondents were in greater agreement than their male counterparts concerning the following statements: RS1 Women have managerial qualities and skills that are less prevalent in men, RS2 Women demonstrate a greater level of sensitivity compared to men, RS3 Women are helpful, sympathetic, kind and genuinely concerned with others' welfare compared to men, RS4 There are gender differences in ethical considerations and decision-making in a corporate environment, RS5 Women deliberate more over decision-making, RS6 Women are more likely to ask questions and debate issues, RS7 Women bring new ideas, skills and views to the boardroom, and RS12 Some women do not seek board appointments due to family commitments. ...
... Overall, this research shows a negative bias by male respondents towards the positive attributes females can bring to the boardroom, a bias that may influence the selection of female directors in the future. Undoubtedly, women can influence firm outcomes (Adams, 2016). This research suggests that the apparent bias against women is not just because they are female but from a perceived mismatch between inferred female characteristics and male stereotype leadership requirements. ...
Purpose - This study aims to contribute to the literature on board gender diversity by soliciting university students' views on several perceptions raised by academics concerning the suitability of women to serve on corporate boards. In particular, if the opinions of male students differ from those of female students, showing any gender bias.
Design/methodology/approach - The study is part of a much more comprehensive investigation into board gender diversity. It adopts a questionnaire approach, with this paper focusing on twelve research statements. Two hundred ninety-six university students completed the questionnaires at a public university in the Czech Republic during March-April 2023. A pilot questionnaire was conducted in February 2023, resulting in minor changes being made. The data is analysed using SPSS and MedCalc® statistical software.
Findings – While, in some respects, it supports the literature in relation to the observations highlighted in the research statements concerning female traits/characteristics, there is unmistakable evidence of gender bias in the respondents' opinions regarding the qualities women can bring to corporate boards. Overall, this research shows a negative bias by male respondents towards the positive attributes females can bring to the boardroom. This bias may influence the selection of female directors in the future. This research suggests that the apparent discrimination against women is not just because they are female but from a perceived mismatch between inferred female characteristics and male stereotype leadership requirements. There is, however, no gender bias with respect to students' leadership aspirations.
Originality/value - The research respondents' perceptions may well influence the decision-making process for the selection of future corporate directors. While these current perceptions may, and invariably will, change over time, it is important to identify them at an early stage in the respondents' careers. This research gives a better understanding of the perceived qualities that women bring to corporate boards from an inexperienced perspective.
Practical, social, and political implications – The findings of this research should help with the policy-making decisions concerning the selection of future corporate board directors and help break down any negative gender selection bias. The paper adds to the discussion and debate about ethical issues related to business and broader society concerning gender diversity in senior management roles. It also adds to the political debate on the issue of legislative gender initiatives.
... Numerous BGD studies have shown how women on boards affect corporate decision making (Adams, 2016;Atif et al., 2021). Various methodologies have been used to study female directors and ESG. ...
Purpose
This study examines the relationship between board gender diversity (BGD) and financial performance (FP) in the Malaysian emerging market, focusing on the mediating role of Environmental, Social and Governance (ESG) performance.
Design/methodology/approach
Using a dataset of 976 observations from Malaysian publicly listed companies from 2016 to 2023, this study explores BGD as the independent variable with FP measured through both accounting and market metrics. ESG performance serves as a mediating variable. The analysis employs Structural Equation Modelling (SEM) to examine direct and mediating effects, supplemented by the Baron and Kenny approach and Two-Stage Least Squares (2SLS) regression for robustness.
Findings
The findings indicate that higher BGD positively and significantly impacts all three performance measures: Tobin's Q (TQ), Return on Assets (ROA) and Return on Equity (ROE). ESG performance positively influences these measures. The SEM analysis reveals a significant positive impact of BGD on ESG performance, which fully mediates the relationship between BGD and TQ/ROA and partially mediates the relationship between BGD and ROE.
Practical implications
The results have significant implications for policymakers, board members, scholars and investors, stressing the importance of gender diversity and ESG performance in improving FP. The findings suggest that enhancing board effectiveness through BGD can promote sustainable practices and align corporate strategies with broader sustainability goals, which eventually helps to improve companies’ FP.
Originality/value
This research contributes to the literature by highlighting the mediating role of ESG performance in the relationship between BGD and FP and emphasizing the importance of gender diversity in corporate sustainability. It addresses this gap by providing insights into how ESG performance enhances the impact of BGD on FP.
... It has been argued that while women representation can positively affect the performance of firms, it is also possible that firms with better performance are more likely to hire or appoint women in top managerial positions or on corporate boards (Campbell and Mínguez-Vera 2008; Dezső and Ross 2012; Solakoglu and Demir 2016). Self-selection was also highlighted to be a potential source of endogeneity, if women choose to join the more successful firms (Adams 2016;Farrell and Hersch 2005). These concerns about endogeneity may also extend to the relationship between gender diversity and innovation, although the literature on this topic is scarce (Na and Shin 2019, Ritter-Hayashi et al. 2019). ...
This study examines the relationship between the representation of women at various hierarchical levels and innovation using firm-level data from Central and Eastern Europe and Central Asia. Findings suggest a positive association between the presence of at least one woman among the owners and a firm’s probability of introducing a new product. Additionally, supporting evidence is found for the impact of having a woman top manager on product innovation. The evidence regarding the role of gender on process innovation is restricted to specific country groups. Increasing the share of women employees positively affects both product and process innovation.
... Other related studies (e.g. Rao and Tilt, 2016;Bear et al., 2010) also highlight that female board members may influence societal outcomes and support eco-friendly environmental practices (Adams, 2016;Al-Shaer and Zaman, 2016). Beji et al. (2021) find that female board members are more involved in CSR engagement and ethical issues from their male counterparts and genderdiverse boards tend to be more sensitive to sustainability concerns than less genderdiverse ones. ...
Purpose
This study investigates whether female board representation reduces carbon emissions in French-listed companies. It also analyzes to what extent and in what direction family control moderates this relationship.
Design/methodology/approach
The authors collected data from nonfinancial French-listed companies between 2017 and 2022, totalizing 468 firm-year observations. Then, the data were analyzed using linear regression models with panel data.
Findings
Findings show that board diversity improves firms' emission reduction performance, suggesting that women on board constitute a valuable resource that can bring distinctive management styles to improve carbon emission performance. Furthermore, the carbon performance-favorable orientation of women on board tends to be weaker, according to the family’s interests and wishes.
Practical implications
This research highlights that female directors help boards address carbon risk only in nonfamily firms. Our study also supports policymakers' efforts to improve diversity in the board of directors through the mandatory female directorship quota of 40% since 2011 in France.
Originality/value
This study extends past literature by providing new insights into the effect of board gender diversity and family control on carbon emissions performance in the French context, which is characterized by an increasing trend for higher carbon engagement by listed firms in France, mainly after the Paris Agreement.
... Despite the extensive literature reviews on gender diversity proposed by Post and Byron (2015), Adams (2016), Khlif and Ackek (2017), and Hardies and Khalifa (2018), all agree on the following point: research on gender diversity and its impact on company value/performance continues to be scarce. They base their argument on the fact that, given the diversity of empirical results, as well as the possible conflicting theoretical explanations, the relationship between gender diversity on the BoD and company value/performance continues to be an empirical question that needs to be validated. ...
This paper aims to review the literature on gender diversity on top management teams and its impact on firm’s performance and audit quality. Over the period of 1997–2023 a total of 125 published articles were identified. Main findings reveal that literature on gender diversity continues to be contradictory, inconsistent and inconclusive regarding its impacts on firm’s performance and audit quality, highlighting the need to intensify research on this field to validate empirically those relationships. The literature review informs researchers on other audiences about the main characteristics of the literature on gender diversity and identifies several research gaps in the area.
... Within leadership roles, women evince a predilection for prioritizing stakeholders and embracing a protracted temporal perspective to a greater extent than their male counterparts, even when such a disposition necessitates the relinquishment of immediate financial gains (Yang et al., 2019). Conspicuously, women demonstrate a heightened proficiency in orchestrating the harmonization of diverse stakeholder interests, encompassing communities, employees, suppliers and customers, with the performance-centric considerations of shareholders (Adams, 2016). This unwavering dedication to stakeholder integration serves to augment the reliability of decisions and actions undertaken by women leaders, thereby fortifying the ethical underpinnings of their leadership approaches (Adams and Funk, 2012). ...
Purpose
The purpose of the paper is to examine the effect of chief executive officer (CEO) succession on environmental, social and governance (ESG) performance and whether the characteristics of the incoming CEO, in terms of both gender and career horizon, are able to affect the relationship between CEO succession and ESG score.
Design/methodology/approach
The paper investigates a sample of European-listed companies between 2010 and 2021. Difference-in-difference and fixed-effects regressions are employed as the base empirical methodology. In addition, the robustness of the empirical findings is assessed by employing alternative methodologies and a different ESG proxy.
Findings
The empirical findings show the existence of a positive link between CEO succession and ESG performance and that this relationship is affected by two characteristics of the incoming CEO. Specifically, the empirical evidence indicates that the positive effect is magnified by the gender and the career horizon of the incoming CEO.
Originality/value
Considering the lack of research, this paper is the first one that opens a debate about the effects of CEO succession on corporate ESG performance in several European countries. By employing a unique sample of European listed firms, which has never been examined in other empirical research, this study highlights the importance of the demographic features of the incoming CEOs that should be taken into consideration during their selection process.
... In this framework, Adams (2016) affirms that the appointment of women to the board of administration can reduce the possibility of excessive risk-taking, since women are more susceptible to show aversion to risk in financial decisions, leading to less risky business results. ...
Purpose
This paper aims to examine the determinants of the dividend distribution policy in a banking setting.
Design/methodology/approach
Using a sample of 48 Islamic banks and 94 conventional banks from 15 Islamic countries over a period spanning from 2012 to 2019, we document the effect of board gender diversity, executive director profile and governance mechanisms on dividend payment decisions. We also analyze the moderating effect of Islamic banks on the relationship between gender diversity and dividend policy.
Findings
We find new evidence on the role of women directors in determining dividend distribution policy and confirm the risk aversion hypothesis, hence contributing to the ongoing debate on gender diversity literature. Our results show that the moderating role of Islamic banks is effective only for small banks.
Practical implications
Our findings have practical implications for shareholders, managers and financial analysts as they suggest rationalizing dividend distribution strategies.
Originality/value
Our study contributes to the growing body of knowledge on dividend policy, gender diversity and Islamic banks.
... Authors such as Bakar et al. (2019) have advocated for female directors' presence; this represents one of the significant elements of diversity that allows firms to achieve their goals and represents a crucial tenet of RDT, which posits that board diversity minimises environmental interdependence through providing more resources (Bakar et al., 2019). Adams (2016) suggested that women directors on the board could improve corporate societal outcomes, also reflected in the UN 2030 Agenda, which advocates for women's representation at senior levels (UN, 2015). ...
This study investigating the impact of sustainability committee characteristics (SCCs) on corporate sustainability performance (CSP) utilised environmental, social and governance (ESG) scoring. Based on secondary data obtained from Refinitiv, Fame and FTSE 150 databases, the sample consists of 112 non‐financial companies from 2010 to 2018, thus 926 firm‐year observations. The results reveal a positive and significant relationship between organisational factors including firm size, profitability and firm age across combined ESG and environmental scores. As for the sustainability committee characteristics, there is a positive association between frequency of committee meeting and age diversity with governance scores and a negative relationship between frequency of committee meeting and environmental performance. The empirical finding shows positive and negative relationships under the presence of focussed and non‐focussed committees equally. Furthermore, the presence of focussed or non‐focussed sustainability committees (SCs) do appear to have an association with the overall CSP. Furthermore, this paper provides empirical evidence of the insignificant relationship of SCC with the sub‐dimension of social performance, which contradicts our hypothesis and existing studies. Together with SCC's weak associations with environment and governance dimensions, this finding supports the argument that firms are actively using sustainability committees to create positive public image and reputation to protect legitimacy.
... Our study provides important regulatory guidance for countries that hope to make their reforms more effective (e.g., increase legal enforcement or gender equality) and for countries that have not enacted the reforms, such as China and Korea. Our paper also answers the recent call for research on gender diversity due to the concern about causal inference (Adams, 2016). The relative exogenous setting arising from the staggered enactment of BGDRs offers a great opportunity for us to show the impact of gender diversity on voluntary disclosure. ...
Research Question/Issue
This study examines the relationship between boardroom gender diversity reforms (BGDRs) and corporate voluntary disclosure in the form of management earnings forecasts (MEFs) in a sample of 43 countries over the period 2000 to 2020.
Research Findings/Insights
Taking advantage of the staggered adoption of the gender diversity reforms that aim to improve women's representation on boards, we find that firms exhibit a greater propensity for and frequency of issuing MEFs. These findings hold for both governance‐based and legislation‐based reforms but are stronger for the latter. Furthermore, we find stronger results (a) when female directors possess higher financial expertise and serve on board sub‐committees, (b) when board activity (meetings and attendance) improved following BGDRs, (c) for firms that had all‐male boards before the reforms and where gender diversity increased shortly after the reforms, and (d) for countries with greater legal enforcement and gender equality. Our findings are robust using the stacked difference‐in‐differences approach and alternative samples, models, and fixed effects. In addition, we find that, after the reforms, there is an increase in the forecast horizon, forecast width, bad news disclosure, accuracy, and the number of disaggregated forecast items.
Theoretical/Academic Implications
Our study provides the first international and comprehensive evidence of the positive role of board gender reforms in the corporate information environment and offers vital policy implications.
Practitioner/Policy Implications
Our study informs the ongoing debate regarding the effectiveness of and business case for gender diversity reforms. By documenting a causal link between BGDRs and voluntary disclosure, our study provides important implications for policymakers, regulators, investors, and top management teams.
... The previous studies revealed that firms with more diverse boards tend to perform better financially and make better decisions. BGD can be calculated by determining the percentage of women on the board, computed by dividing the number of women on the board by the total number of directors and multiplying by 100 (Adams, 2016). ...
This study examines the relationship between environmental, social, and governance (ESG) and environmental sustainability performance (ESP), focusing on the moderating role of gender diversity on the board (BGD) in Asian firms listed from 2005 to 2019. Using the GMM estimation model, the results reveal a significant relationship between ESP and the ESG scores. The study further reveals that BGD strengthens the relationship between ESP and the ESG scores. This study is timely given that investors in Asian countries are becoming more environmentally sensitive and focusing more on sustainability performance. The study contributes to the literature on ESG and sustainability by offering evidence of the role of BGD in enhancing environmental sustainability performance. Furthermore , this study has significant implications for policymakers, highlighting the importance of monitoring and evaluating listed firms to ensure that they receive higher ESG ratings. Policymakers should encourage firms to disclose all energy used to minimize pollution, which will improve their ESG score and benefit the society at large through the adoption of recently released IFRS Sustainability Disclosure Standard.
... The business case relies on the proposition that women serving on boards are substantially different from men, and this difference would bring a variety of benefits to the board decision-making process. First, foundational psychology literature has established that there are substantial differences between men and women at the population level on attributes such as risk profile and values (Adams, 2016). Second, it is anticipated that differing life experiences would bring varied perspectives and different approaches to problems (Anderson et al., 2011). ...
This paper aims to inform the ongoing emphasis on board structure (Yu, 2023) by reconciling the Australian empirical evidence on firm performance-board structure links. While international findings are instructional, differences between governance systems across nations (Alabdullah et al., 2022; Outa & Kutubi, 2021) highlight the importance of understanding the salient nature of the Australian context compared to the UK and US (e.g., fewer listed companies with lower levels of institutional shareholding, higher agency costs and higher compliance to the prescribed governance practices. Meta-analysis was employed to reach an overall Pearson correlation for the association between firm performance and four board composition characteristics (i.e., board independence, CEO duality, board size, and female ratio on boards). The meta-analysis employed includes all empirical studies that used Australian data to investigate firm performance-board structure links. This research also provides guidance on improved theorizing, measurement, and modelling for boards’ research. The results indicate that the correlation between each board’s independence, CEO duality, and financial performance is almost zero. Moreover, board size and female ratio on board have a small positive correlation with financial performance. This paper highlights the importance of considering a specific theory and evidence before employing intermediary variables as controls.
... However, the existing body of research has primarily focused on examining the impact of a critical mass of women on board on firm performance, neglecting to thoroughly investigate the potential role of the institutional setting in shaping this relationship (Adams, 2016;Zhang, 2020;Leyva-Townsend et al., 2021). This oversight is unfortunate, as the institutional context frequently plays a pivotal role in influencing the behavior and interactions of women at the highest levels of corporate leadership (Campopiano et al., 2022). ...
Purpose
This paper aims to present a comprehensive theoretical framework that seeks to explore the impact of cultural, legal and social factors within the external environment on the relationship between women on corporate boards and firm performance. By investigating these boundary conditions, the paper aims to shed light on how these pressures influence the aforementioned relationship.
Design/methodology/approach
To build the sample of companies, the authors selected companies listed on the stock exchanges of countries that represent a diverse range of institutional contexts. These contexts encompass countries with individualistic cultures, collectivist cultures, environments with mandatory gender quotas, environments without gender quotas, contexts with substantial progress toward gender equality and contexts with limited progress in achieving gender equality. To test the hypotheses, the authors used linear regression analysis as a primary analytical approach. Furthermore, they used the propensity score matching technique to address potential issues of reverse causality and unobserved heterogeneity.
Findings
The findings indicate that the positive influence of a critical mass of women on corporate boards on firm performance is contingent upon the institutional context. Specifically, the authors observed that this relationship is strengthened in institutional contexts characterized by an individualistic culture, whereas it is not as pronounced in collectivist cultural contexts. Furthermore, this research provides compelling evidence that the presence of a critical mass of women on boards leads to enhanced firm performance in institutional settings where gender quotas are not binding, as opposed to settings where such quotas are enforced. Lastly, the results demonstrate that the presence of a critical mass of women on boards is associated with improved firm performance in institutional settings characterized by low progress in achieving gender equality. However, the authors did not observe the same effect in institutional contexts that have made significant strides toward gender equality.
Originality/value
This research offers a unique perspective by investigating the relationship between women’s presence on corporate boards and firm performance across different institutional contexts. In this investigation, the authors recognize that gender diversity on corporate boards is not a one-size-fits-all solution and that its effects can be shaped by the unique institutional contexts in which companies operate.
More and more women have been engaged in public affairs in recent years. Due to the different perspectives and
knowledge of female and male, female directors play more roles in corporate sustainable development, especially
for corporate social, environmental and governance performance. This study uses panel data of 275 firms from
2010 to 2018 of German firms, to explore the impact of female directors on the board of corporate environmental,
social and governance performance. Through OLS, 2SLS and GMM model, this study found that the high
percentage of female directors on the board is more likely to enhance the corporate environmental, social and
governance performance and corporate social responsibility strategy. The policy “Act on Equal Participation” in
Germany that makes it mandatory for companies to increase the percentage of female directors will increase the
positive impact of female director on corporate environmental, social and governance performance. In addition,
this study separates environmental, social and corporate governance and explores the relationship with female
directors. The results of this study show that high percentage of female directors’ benefit for corporate environmental
and social performance but not impacting corporate governance ability.
The aim of this study is to examine relationships between CSR and corporate financial performance, considering the role of board diversity in retail industry in the UK. The theories examined include Friedman's theory and Stakeholder theory, which have conflicting ideas on whose needs a company should serve. Quantitative methodology is utilized to capture sample data comprising 10 years of financial data. Data were collected on companies listed on the FTSE 100 during 2012–2021 that were operating in the UK retail sector. This study uses regression analysis to test the hypothesis that analyses the relationship between CSR, gender diversity, and financial performance. There is no significant relationship between gender diversity and financial performance. The number of female directors on the board does not impact financial performance, so the regression analysis does not allow us to reject the null hypothesis. Instead, past performance, sales growth, and leverage impact financial performance.
This article examines the relationship between sustainability and gender equality by analyzing how the percentage of women on the board of directors (still less than 50% in most cases) influences a company's commitment to green building practices. For this analysis, we estimate 30 competing multivariate pooled and panel data logistic specifications, including the gender diversity factor in both its traditional and polynomial forms. This methodological innovation (the polynomial form) allows for the examination of gender diversity's relationship with other variables beyond conventional models that assume constant effects, thus enabling a more realistic depiction of impacts that vary with the degree of diversity. Our dataset includes companies listed on the Euro Stoxx 300 and Standard & Poor's 500 for the period 2010–2021. The findings indicate that, in both indices, an increased percentage of women on the board (and a higher Blau diversity index) correlates with a greater propensity for sustainable building practices, up to a threshold nearing parity. The impacts are more significant in Europe than in the U.S., where board gender diversity appears to have a lesser influence on green building initiatives. The specification that best models the relationship between sustainable building practices and gender diversity, along with other relevant factors, is a multivariate panel data logistic model with the gender diversity factor included as a cubic polynomial for companies listed on the Euro Stoxx 300. A similar model, but with the gender factor in a quadratic polynomial form, was selected for companies listed on the Standard & Poor's 500. Therefore, the impact function of gender diversity on sustainable building practices is not constant but depends on the existing degree of board gender diversity, with the shape of the impact function differing between Europe and the U.S. Additionally, the study finds that other board characteristics—larger boards, longer tenures of directors, and higher compensation for senior executives—are associated with an increased propensity towards green practices in both the European and U.S. contexts. Conversely, linking CEO compensation to shareholder returns reduces this propensity. Moreover, the number of non‐executive directors and the overlap between the Chairperson and CEO positions do not significantly impact this propensity.
Purpose: This study aims to explore the influence of women heads of government on human capital development and gender inequality, specifically focusing on education and health in the Philippines, Indonesia, Thailand, and Vietnam from 1991 to 2021. Despite the increasing presence of women in leadership roles globally, their impact on human capital indicators remains underexplored. Methodology: To investigate this, the research employs a comparative approach that includes the Levin-Lin Chu Test, Im-Pesaran-Shin Test, Fixed Effects, Random Effects, and Ordinary Least Squares to analyze data from countries with female leaders and evaluate changes in educational attainment and health outcomes during their tenures. Findings: The findings reveal that while higher educational attainment among women and increased representation of women in political leadership do not automatically result in greater labor force participation, female life expectancy has a significant and positive effect on female labor force participation (FLFP), indicating that healthier women are more likely to engage in the workforce. Unique Contribution to Theory, Practice and Policy This research uniquely contributes to understanding the role of female leadership in fostering inclusive growth and emphasizes the importance of gender representation in political leadership for advancing human capital.
This paper examines the influence of female representation on audit committees (ADs) on the quality of non-financial reporting. Results of an empirical study conducted with a sample of companies belonging to the French SBF 120 stock market index during the period 2014 to 2021 show the positive influence of women's AD presence on social and overall corporate social responsibility disclosure. However, a critical mass of at least three women members on a AD must be reached to improve environmental disclosure. The results are in line with the PACTE Law (2019), which increases requirements for the dissemination and certification of non-financial information, and the Copé-Zimmermann Law (2011), which strengthens the presence of women on boards of directors and their various committees.
Ce papier examine l’influence de la représentation féminine au sein du comité d’audit sur la qualité du reporting extra-financier. L’étude empirique est menée auprès d’un échantillon de sociétés composant l’indice boursier SBF 120 sur la période allant de 2014 à 2021. Les résultats montrent l’influence positive de la présence des femmes sur la divulgation RSE globale et sociale. Nous constatons qu'une masse critique d'au moins trois femmes membres du comité d’audit doit être atteinte pour améliorer l’information environnementale. Les résultats de notre recherche s’inscrivent dans la continuité de la loi de PACTE (2019) qui accroît les exigences en matière de diffusion et de certification d’informations non financières et de la loi Copé-Zimmermann (2011) qui renforce la présence des femmes dans les conseils d’administration et ses différents comités.
This study explores the moderating role of the business environment in the relationship between top manager gender and firm performance, using firm‐level data from 29 African countries. Controlling for endogeneity and country fixed effects, we find that female‐managed firms generally underperform male‐managed firms, except among large firms where female managers excel. The performance gap is exacerbated by a weak business environment, highlighting the need for reforms to close the managerial gender gap in Africa. Strengthening the business environment is essential for improving female‐led firm performance and by extension promoting gender equality in African business leadership.
Considering innovation as a determining factor for the competitiveness of companies, about which there has been inconclusive evidence about the factors that influence it, such as the gender diversity of the Boards of Directors, the aim of this study is to analyze what is the impact of the presence of women on the Boards of Directors on the innovation of companies, given the institutional and cultural contexts of the European countries. Using a multitheoretical analysis, a panel data set was analyzed, covering an analysis period of teen years (2012–2022). The sample consists of 25 countries belonging to the European Union that are on the list of the 50 most innovative countries in the world. The results obtained from the regression model, employing the random effects method, denote a negative and significant association between board gender diversity and business innovation, On the other hand, both institutional and cultural contexts were found to be related to corporate innovation, with a positive and significant relationship with the investor protection index, which corroborates the evidence that countries with a strong institutional environment experience higher levels of corporate innovation (Kayalvizhi and Thenmozhi, Emerging Markets Review 34:175–191, 2018) and the negative and significant relationship with the cultural dimension of Masculinity which, contrary to the first result mentioned, supports the presence of female characteristics in the offspring of higher levels of innovation, which suggests that the percentage of women on Boards is still low to allow companies to take advantage of the benefits of gender diversity compared to their presence in society in general.
Research Summary
In this article, we examine the multidimensional and multilevel nature of diversity in the context of corporate boards. Using the concept of faultlines, we argue that when gender and racial background aligns with human capital attributes of board members, faultlines may be formed with negative implications for firm performance. However, the potential negative impact of faultlines can be alleviated by overlaps in the characteristics of the CEO and minority directors. Specifically, we find that higher overlaps in tenure and personal range of functional experiences help overcome some of the disadvantages that minority directors face and moderate the relationship between board faultline strength and firm performance. Empirical tests using 14 years data on 262 firms belonging to S&P500 index largely support our theoretical ideas.
Managerial Summary
Boards often suffer from unhealthy team dynamics. In this article, we explore how alignment of board members' attributes may lead to potential subgroup formation within boards. Specifically, we examine how, under existing pressures to increase demographic diversity on corporate boards, alignment of human capital characteristics with gender and racial minority status may lead to the formation of board faultlines that negatively influence firm performance. Our results suggest that the CEO plays a pivotal role in overcoming negative consequences of board faultlines by utilizing shared tenure on board and common functional experiences with minority board members. Our research suggests that board selection needs to focus beyond scrutinizing individual‐level human capital and instead understand alignments of directors' profiles that enable optimal board functioning.
The primary aim of this chapter is to explore what measures companies in the automotive aftermarket are employing to achieve more gender diversity in senior leadership positions. Gender equality in leadership has been stated as a sub-goal of the UN’s Sustainable Development Goal number 5, emphasising that businesses have to respond to gender inequalities immediately. To explore what actions the automotive aftermarket is currently taking and what can be improved to alleviate the challenges that women are facing in career advancement, qualitative semi-structured interviews were employed. A sample of 10 female employees in high-ranking positions in different European automotive aftermarket companies yielded findings which show that there is a gender bias in the automotive aftermarket, which might impede career advancement for women. Another main challenge proves to be work–life balance, which shows that increasing job flexibility and female empowerment would support women and enable them to advance to higher positions. Importantly, several companies are already increasing their focus on gender equality by implementing specific diversity policies and mentoring programmes. Despite these initial efforts made by companies, experiences from women in the aftermarket show that there are still significant hurdles which the industry has to overcome.
India has mandated at least one woman to be on company boards, starting in October 2014. This study aims to investigate the impact of female board members on market-based firm performance, using data from a sample of S&P Bombay Stock Exchange (BSE) 500-listed firms from 2015 to 2022. By incorporating social theory and stakeholder theory, the study examines the circumstances under which female board members influence firm performance. Additionally, the study explores how their positive influence on sustainable practices affects market performance. The role of firm innovation intensity in moderating this connection is also explored. The study utilizes structural equation modeling (SEM) and PROCESS macro for quantitative empirical analysis. The results indicate that having female board representation is a strategic choice that significantly impacts a company’s performance in the market. The findings also reveal that when companies prioritize innovation, the presence of female board members has a positive influence. Overall, this research supports the “business case” argument, suggesting that female board representation through sustainability mechanisms can enhance market performance. The study’s outcomes provide valuable insights for investors, practitioners, and policymakers.
This study examines whether and how board gender diversity can affect corporate wage inequity by drawing on diversity theory and gender socialization and ethicality theories. Building on an exogenous relaxation of China’s one-child policy (OCP) in 2013, which led to a substantial decline in the female labor force participation rate. Our empirical analysis suggests that board gender diversity is negatively associated with corporate wage inequity. This result is robust to various endogeneity and sensitivity analyses. We find that the OCP relaxation only increases average executive pay; it does not affect employee pay. One potential mechanism driving our results is that the decline in board gender diversity caused by the OCP relaxation reduces supervision, restriction, and fairness within the firm, which increases executives’ pursuit of personal interests and ultimately leads to the rise of wage inequity. Our findings are particularly significant for firms in capital-intensive industries, firms with a low level of employee bargaining power, and large firms.
Gender inequality remains a global phenomenon. According to the UN Women 2022 report, reaching full gender equality worldwide will take around 300 years. Even though Iceland has achieved the greatest progress of all countries toward closing the gender gap in 2023, reaching 91.2%, the situation remains similar. In January 2024, 26 companies were listed on Nasdaq Iceland, but despite gender quota legislation on corporate boards, the score is 22-4 in favor of men in CEO positions. The expected trickle-down effect from the board gender quota legislation has not materialized, and therefore women board members in listed companies face criticism for not having done their part to close the gender gap. Previous studies have mainly focused on seeking explanations for this gender imbalance, and few have emphasized effective solutions to overcome gender inequality and biases in society and the workforce. Therefore, the objective of this study is to examine ways to close the gender gap and achieve gender balance and equal opportunities for women and men to reach top management team (TMT) positions. The study also explores possible interventions from the standpoint of women. For this purpose, in-depth interviews were conducted with 22 women serving as board directors, collectively representing all listed companies in Iceland. The findings reveal that the women support three main approaches to ensuring equal opportunities to reach TMT positions for women and men: (a) a gender quota on executive-level positions at the companies that fall under the board gender quota legislation; (b) adoption of a gender equality policy by leading institutional investors, such as pension funds, as part of their ownership strategy; and (c) implementation of gender equality policy by corporate boards, instituting succession management to equally train and prepare all genders for promotion.
Purpose
Situated in the context of India, where women’s representation on corporate boards remains low, this study aims to explore whether and how tokenism impacts the behaviours of female directors.
Design/methodology/approach
The boardroom experiences and perceptions of 14 women directors are explored through semi-structured interviews and analysed using an inductive and interpretive process. Also, to get a counter perspective and avoid the social desirability bias from the women participants’ responses, 16 men directors are interviewed.
Findings
The study finds that, as gender minorities, women directors' visibility on boards can create performance pressures on these women. To counter gender-based prejudices, women directors consciously alter their behaviours and project both male and female traits consistent with the director role. By doing so, women directors overcome tokenistic stereotypes and are accepted as part of the director in-group, irrespective of their numeric representation on the board.
Practical implications
The research has implications for governments attempting to increase women’s board presence through affirmative actions and for firms aiming to improve the gender diversity of their board composition.
Originality/value
These findings present an alternative perspective on women directors’ board behaviour by exploring the applicability of Western trends on tokenism and critical mass in the context of India, adding to the vast body of literature concerned with minorities on corporate boards.
Purpose
The literature has dealt with the relationship between board characteristics (BC) and firm performance (FP) on a large scale. However, it yielded inconsistent results. Thus, this paper aims to examine the indirect relationship between BC and FP through the mediating role of the capital structure (CS).
Design/methodology/approach
This study used a sample of 528 non-financial companies listed on Bursa Malaysia from 2015 to 2019. Also, a two-step system generalised method of moments estimation technique was applied.
Findings
The results show that board diversity and the frequency of board meetings positively affect financial performance, and it is negatively influenced by board turnover, size and independence. Also, the results indicate a positive relationship between the independence of the board and all CS variables. Importantly, the findings support the policy-setting role of the board of directors where CS (measured by total debt and short-term debt) suppresses some governance mechanisms’ detrimental effect on FP. Hence, the board of directors, apart from the monitoring function, introduce various policies (financial and non-financial) that enhance the overall performance of companies.
Originality/value
These results are consistent with the agency’s perspective that management practices in selecting the optimal capital reduce agency costs and improve performance. The findings contribute to developing a broader theoretical framework that accounts for the policy-setting role of the board of directors. The current study model of corporate governance offers insight for policymakers into the role of corporate governance other than monitoring functions in organisations and how CS should be taken into consideration with corporate governance and FP association.
In 2011, Britain and France introduced affirmative action policies aiming at improving board gender mix in listed companies. While the reforms were similar in terms of target and timing, Britain opted for a ‘soft law’ (comply or explain) approach, while France enacted a mandatory quota. Using difference-in-differences analyses, we examine the differential impact of these two reforms on board composition and on women empowerment within boards. We first show that the quota has been associated with a more rapid adjustment of the gender mix without significant disruptive effects on board composition. However, we report that the quota has induced a more limited access of women to monitoring committees within boards, relative to soft law. As these committees are the most influential, this evidence shows that the quota came at a cost when considering within-board women’s influence.
A gender gap in mathematics achievement persists in some nations but not in others. In light of the underrepresentation of women in careers in science, technology, mathematics, and engineering, increasing research attention is being devoted to understanding gender differences in mathematics achievement, attitudes, and affect. The gender stratification hypothesis maintains that such gender differences are closely related to cultural variations in opportunity structures for girls and women. We meta-analyzed 2 major international data sets, the 2003 Trends in International Mathematics and Science Study and the Programme for International Student Assessment, representing 493,495 students 14-16 years of age, to estimate the magnitude of gender differences in mathematics achievement, attitudes, and affect across 69 nations throughout the world. Consistent with the gender similarities hypothesis, all of the mean effect sizes in mathematics achievement were very small (d < 0.15); however, national effect sizes showed considerable variability (ds = -0.42 to 0.40). Despite gender similarities in achievement, boys reported more positive math attitudes and affect (ds = 0.10 to 0.33); national effect sizes ranged from d = -0.61 to 0.89. In contrast to those of previous tests of the gender stratification hypothesis, our results point to specific domains of gender equity responsible for gender gaps in math. Gender equity in school enrollment, women's share of research jobs, and women's parliamentary representation were the most powerful predictors of cross-national variability in gender gaps in math. Results are situated within the context of existing research demonstrating apparently paradoxical effects of societal gender equity and highlight the significance of increasing girls' and women's agency cross-nationally.
This research examined the proposition that differential role occupancy by women and men fosters gender gaps in sociopolitical attitudes. Analyses of the General Social Survey (J. A. Davis & T. W. Smith, 1998) and a community sample showed that women, more than men, endorsed policies that are socially compassionate, traditionally moral, and supportive of equal rights for women and for gays and lesbians. To clarify the sources of these gaps, the research examined (a) similarities between gender gaps and gaps associated with other respondent attributes such as race and parenthood, (b) interactions between respondent sex and other attributes, (c) the temporal patterning of gender gaps, and (d) the mediation of attitudinal gender gaps by 3 ideological variables--commitment to equality, group-based dominance, and conservatism versus liberalism.
This paper is a survey of the literature on boards of directors, with an emphasis on research done subsequent to the Benjamin E. Hermalin and Michael S. Weisbach (2003) survey. The two questions most asked about boards are what determines their makeup and what determines their actions? These questions are fundamentally intertwined, which complicates the study of boards because makeup and actions are jointly endogenous. A focus of this survey is how the literature, theoretical as well as empirical, deals-or on occasions fails to deal-with this complication. We suggest that many studies of boards can best be interpreted as joint statements about both the director-selection process and the effect of board composition on board actions and firm performance.
Research on board diversity has received much attention recently. This is a natural consequence of the fact that female representation on corporate boards has risen to the top of policy agendas. It is, however, far from obvious whether and how such research is useful for policy discussions. This is our own fault. We, the researchers, often do not explain what we are trying to achieve. We are not always clear about the limitations of our work, and we often tolerate misinterpretation of our work by policymakers and the media.
In this short piece, I summarize what we have learned from the board diversity literature, and what is useful (and not useful) for policy debates and design. I organize my comments around three questions.
This paper examines the association between the presence of female directors on a corporate board and mergers and acquisitions (M&As). Using acquisition bids initiated by S&P 1500 firms during the period 1997-2009, we find that each ten percent of female directors on a board is associated with a reduction in the number of a company’s acquisition bids by 7.6 percent. Furthermore, using over 450 acquisition bids for which we have data on bidder and target firm characteristics and their boards, we find that each ten percent of female directors on a bidder board is associated with a reduction in the bid premium by 15.4 percent. We discuss possible interpretations of our findings.
Psychological and socio-psychological factors are now more commonly discussed as possible explanations for gender differences in labor market outcomes. We first describe the (mainly) laboratory-based evidence regarding gender differences in risk preferences, in attitudes towards competition, in the strength of other-regarding preferences, and in attitudes towards negotiation. We then review the research that has tried to quantify the relevance of these factors in explaining gender differences in labor market outcomes outside of the laboratory setting. We also describe recent research on the relationship between social and gender identity norms and women's labor market choices and outcomes, as well as on the role of child-rearing practices in explaining gender identity norms. Finally, we report on some recent work documenting puzzling trends in women's well-being and discuss possible explanations for these trends, including identity considerations. We conclude with suggestions for future research.
In this article, we review and evaluate recent management research on the effects of different types of diversity in group composition at various organizational levels (i.e., boards of directors, top management groups, and organizational task groups) for evidence of common patterns. We argue that diversity in the composition of organizational groups affects outcomes such as turnover and performance through its impact on affective, cognitive, communication, and symbolic processes.
Little is known about how socioeconomic characteristics of executive teams affect corporate outcomes. Exploiting a unique dataset, we examine how age, gender, and education composition of executive teams affect bank risk taking. First, we establish that age, gender, and education jointly affect the variability of risk taking. Second, we use difference-in-difference estimations that focus on mandatory executive retirements and find that younger executive teams increase risk taking, as do board changes that result in a higher proportion of female executives. In contrast, if board changes increase the representation of executives holding Ph.D. degrees, risk taking declines.
We measure the impact of female leadership on the relative pay of men and women in their firms. We use unique worker-plant matched panel data to measure differences in the wage changes experienced by newly hired workers displaced from closing plants. We correct for endogenous selection, comparing the wage changes of men and women who move from the same closing plant to the same new firm. We observe larger wage losses among women than men immediately upon re-entering the workforce and continuing for the following three years. A woman making 1,200 and $1,500 relative to a man displaced from the same plant and hired by the same firm. However, we find a significantly smaller gap in hiring firms with female leadership: the magnitude of the extra losses to women is cut in half. The result is robust to including hiring firm fixed effects – a firm pays more equal wages to newly hired workers when it has women in power. Our results suggest an important externality to having women in leadership positions: they cultivate more female-friendly cultures inside their firms.
We examine corporate financial and investment decisions made by female executives compared to male executives. Male executives undertake more acquisitions and issue debt more often than female executives. Further, acquisitions made by firms with male executives have announcement returns approximately 2% lower than those made by female executive firms, and debt issues also have lower announcement returns for firms with male executives. Female executives place wider bounds on earnings estimates and are more likely to exercise stock options early. This evidence suggests men exhibit relative overconfidence in significant corporate decision-making compared to women.
We show that female directors have a significant impact on board inputs and firm outcomes. In a sample of US firms, we find that female directors have better attendance records than male directors, male directors have fewer attendance problems the more gender-diverse the board is, and women are more likely to join monitoring committees. These results suggest that gender-diverse boards allocate more effort to monitoring. Accordingly, we find that chief executive officer turnover is more sensitive to stock performance and directors receive more equity-based compensation in firms with more gender-diverse boards. However, the average effect of gender diversity on firm performance is negative. This negative effect is driven by companies with fewer takeover defenses. Our results suggest that mandating gender quotas for directors can reduce firm value for well-governed firms.
This paper reviews the literature on gender differences in economic experiments. In the three main sections, we identify robust differences in risk preferences, social (other-regarding) preferences, and competitive preferences. We also speculate on the source of these differences, as well as on their implications. Our hope is that this article will serve as a resource for those seeking to understand gender differences and to use as a starting point to illuminate the debate on gender-specific outcomes in the labor and goods markets.
Survey data over recent decades show men to differ from women on a number of political attitudes and on political party identification. We provide evidence that many such differences can be attributed to individual differences in Social Dominance Orientation (SDO)--preference for inequality among social groups--that are sex linked. Results from a US college student sample (N = 463) and a US 1992 voter sample (N = 478) replicate previous findings of more male support of conservative ideology, military programmes, and punitive policies and more female support of social programmes and equal rights. Consistent with our hypotheses, men were more social dominance oriented than women, and SDO accounted for much of the sex-linked variability in political attitudes, SDO was also a significant predictor of candidate choice in the US 1992 presidential election through its influence on policy attitudes and political ideology. Implications of these results for theories of gender and politics are discussed.