Abstract
We integrate the resource dependence and institutional economics theories to theorize and test the global drivers of female board representation on corporate boards. We examine both female board percentage (inclusiveness) and female board turnover (sustainability). Using a longitudinal panel dataset of 1071 firms across 42 countries over a 10-year period (2004 to 2013) and qualitative interviews of 25 female board members from 4 countries, we find support for our predictions. The resource dependence variable of female economic empowerment (female education and employment levels in a country) related positively to female board percentage and negatively to female board turnover. However, the institutional economics variable of female board legislative quotas related positively to both female board percentage and turnover. We also found that female economic empowerment and female board legislative quotas interacted positively and reinforced each other’s effects in predicting female board percentage but did not interact in influencing female board turnover. The qualitative interviews shed light on the underlying mechanisms of these relationships as prescribed in the two theories. Our study illuminates the importance of utilizing a multi-theoretic approach in explaining the global nature of the female board representation phenomenon.
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