The impact of social norms on female corporate board membership inclusion

Abstract

PurposeThe purpose of this paper is to document that religious adherence in the county of the corporate headquarter and educational attainment of the female director pool near the firm headquarters are influential to the likely addition of female corporate board directors.Design/methodology/approachThe sample covers 1,630 unique firms and 30,369 unique directors covering a ten-year period to investigate the effects of religiosity and educational attainment.FindingsThe analysis reveals that while the number of women has increased in general terms, this change is mostly limited to boards that are increasing in size. Women do not tend to replace exiting male board members but are appointed when the board size grows. Therefore, while the number of women is increasing in absolute terms, they are not increasing in relative terms. In areas where religiosity is high, as measured by church affiliation and attendance, female participation in the boardroom is lower and a more educated and qualified female population leads to higher board participation. These effects supersede any regional effects.Originality/valueThe study adds insights into corporate board dynamic, providing new evidence concerning the impact of local conditions on board composition as well as additional information concerning the interplay of board dynamics and female board representation.