Board Gender Quotas Research Articles

Climate change mitigation efforts among transportation and manufacturing companies: The current state of efforts in Sweden according to available documentation

Abstract Globally, transportation and manufacturing emit large amount of greenhouse gases that needs to be lowered for reaching agreed upon clim ate goals. In this context evidence of mitigation activities among eighty-five companies and their forty-five parent companies in these two polluting sectors were traced focusing on a country that has committed itself to leading the implementation of ambitious climate-mitigation goals worldwide. Documentation from the companies in the transportation and manufacturing sectors was scrutinized (yearly reports, homepages and sustainability reports, if available) for evidence of any mitigation efforts, including emissions reporting and reduction goals. The study’s results found that two thirds of the companies seemed to have done nothing to mitigate climate change, while efforts in the remaining companies were modest at best; mitigation activities among the forty-five parent companies were only slightly more ambitious. The implications of these depressing findings are discussed in the light of possible caveats and the possibilities of new policy measures such as gender quotas in company boards. The conclusion is that the study’s results most likely reflect reality in the studied sectors and that novel approaches and more sector oriented research is needed in the quest for a carbon-neutral society.

Does CEO gender matter for bank risk?

This paper addresses the relation between CEO gender and bank risk. We exploit a unique dataset of 365 Polish cooperative banks, 42% of which are run by female CEOs. We find that banks headed by female CEOs are less risky: they report higher capital adequacy and equity to assets ratios. Credit risk in female-led banks is not different from male-led banks, and therefore higher capital adequacy does not stem from lower asset quality and is likely to be linked to higher risk aversion of female CEOs. Our evidence supports the view that women are more risk averse bank CEOs than men. Our findings suggest that gender quotas in bank boards can contribute to reduce risk-taking behavior.

The Gender Gap in Executive Promotions

Using comprehensive executive data in 5,886 U.S. firms from 2000 to 2015, I document that the promotion rate for women is 31% lower than the promotion rate for men. While sorting into executive positions in different functional areas explains a substantial portion of the promotion gap, a gap of 20% remains unexplained. Consistent with the presence of taste-based discrimination, the promotion gap is lower in firms in more competitive product markets. I find no evidence that the gap is lower in firms with more female directors, suggesting that board gender quotas may not increase female management representation.

Gender Diversity Issues Within the Company and Beyond: Perceptions of Investor Relations Professionals in German-Speaking Europe

Against the background of the statutory gender quotas for supervisory boards that were recently introduced in several European countries including Germany, we examine how investors and capital market participants perceive the relevance of gender diversity for corporate valuation in stock markets. To address these perceptions, we conduct an anonymous survey of investor relations managers in Austria, Germany and Switzerland who are the natural contact persons for investors and act as the predominant information source in each valuation-relevant topic for capital market participants. Our findings suggest that staff diversity remains a niche topic for capital markets. Accordingly, corporate initiatives for increased gender diversity in executive positions are believed by capital market participants to have no impact on external company valuation. The vast majority of companies considers diversity issues predominantly in the context of fairness and equality. The most influential external stakeholders driving diversity initiatives are government authorities and regulators, women’s and interest associations and the media. Half of the companies surveyed have not implemented specific promotion programs for women in leadership, and almost two thirds of all surveyed companies have not set any planning targets in this context.

Do Board Gender Quotas Matter? Selection, Performance and Stock Market Effects

From business to politics and academia, the economic effects of the introduction of gender quotas are under scrutiny. We provide new evidence based on the introduction of mandatory gender quotas for boards of directors of Italian companies listed on the stock market. Comparing before and after the reform within firms, we find that quotas are associated with a higher share of female board directors, higher levels of education of board members, and a lower share of older members. We then use the reform period as an instrument for the share of female directors and find no significant impact on firms' performance. Interestingly, the share of female directors is associated with a lower variability of stock market prices. We also run event studies on the stock price reaction to both the announcement and the introduction of gender quotas. A positive effect of the quota law on stock market returns emerges at the date of the board's election. Our results are consistent with gender quotas giving rise to a beneficial restructuring of the board, which is positively received by the market.

The impact of gender diversity in the boardroom on dividend policy: evidence from Swedish listed companies

In recent times, shareholders, regulators and researchers have increasingly shown concern about the gender diversity in the boardroom and dividend policy. Many researches show that women in the board can better represent the shareholders’ interest. There are different findings in the previous literature regarding the relationship between gender diversity in the boardroom and dividend policy in Sweden. This paper aims at examining the relationship between women directors in the boardroom and dividend payout, in additional, examining the components of women directors in the boardroom, that is, how the proportion of women directors, the proportion of independent women directors, the proportion of executive women directors and the proportion of institutional women directors affect dividend payout. The study analyzed the 273 companies currently listed on the Nasdaq OMX Stockholm Stock during the period 2011 and 2015. Three different two-way fixed effects models and regression analysis are used to obtain the required data. Our findings indicated that there is a positive significant relationship between the percentage of women directors, independent women directors and dividend payout in three different models. By the regression result of these three models, there is no significant relationship between the proportion of executive women directors/institutional women directors and dividend payout. Thus, our result confirms that the proportion of women directors and independent women directors in the boardroom has effect on the dividend payout. The empirical evidence on this study can support Swedish board gender quota proposal, which requires at least 40% of their board members of public traded companies are female by 2019.

Gender Quotas for Corporate Boards: Depoliticizing Gender and the Economy

Gender quotas for corporate boards can be seen as a way of drawing attention to gendered power within the economy as well as a way to democratize the economy, yet the debate about them has focused on the economic and business benefits of gender equality rather than on gender justice or democracy. This article examines how women’s under-representation in economic decision-making was constituted as an economic problem in the European Union’s gender-equality policies and how the economization of the debate on gender quotas for corporate boards affects understandings of gender equality and the economy. The article contributes to research on gender and neoliberalism through developing an approach for analysing the depoliticizing effects of economized gender-equality discourses. It argues that the depoliticized understandings of gender and the economy put forward in the debate water down the politicizing potential of the proposed EU gender-balance directive and that the debate about gender quotas has enhanced the neoliberalization and corporatization of EU gender-equality discourse.

Has the Push for Equal Gender Representation Changed the Role of Women on German Supervisory Boards?

In Germany, an intensive public debate about increasing female participation in leadership positions started in 2009 and proceeded until the beginning of 2015, when the German parliament enacted a board gender quota. In that period, the share of women on supervisory boards for 111 German publicly listed and fully codetermined companies (i.e. those which are affected by the quota law) more than doubled from 10.6 percent in 2009 to 22.6 percent in 2015. In 2016, the first year when the law was effective, the female share increased again by 4.5 percentage points. Using a hand-collected dataset, we investigate whether the rise in female board representation was accompanied by a change in gender differences in board member characteristics and board involvement. We do not find evidence for the “Golden Skirts” phenomenon, i.e., the rise in the female share was not achieved via a few female directors holding multiple board memberships. After controlling for firm heterogeneity, the remuneration of female shareholder (employee) representatives is about 16 (9) percent lower than for males. We interpret this as an overall indication that women are not only underrepresented in German supervisory boards, they are even more underrepresented in important board positions. Indeed, women are less likely to become a chairman and are less often assigned to board committees (except for the nominating committee). Moreover, in 2016 the disadvantage of women (as compared to men) to obtain a committee membership is even larger than in 2009.

Gender Quotas for Legislatures and Corporate Boards.

The global proliferation of quotas for women over the past 30 years is both remarkable and consequential. Targeting decision-making positions historically resistant to women's equal inclusion, the adoption of electoral and corporate board quotas has at times been controversial. After adoption, quotas have influenced women's numbers, the performance and outcomes of decision-making bodies, and broader public attitudes. In this review, we distinguish among types of electoral and corporate quotas, trace arguments for and against the adoption of quotas, and review research on factors that influence quota adoption across time and space. After outlining the methodological difficulties in demonstrating an impact of gender quotas, we review research that is able to isolate an impact of quotas in politics and business. We conclude by providing several suggestions to ensure that future research continues to advance our understanding of the form, spread, and impact of gender quotas.

Shareholder Wealth Effects of Women on Boards Promoting Policies: Evidence from Germany

This study discusses differences in the effectiveness of voluntary and mandatory policies promoting women on boards and their potential effects on stock price returns. Furthermore, it classifies the announcements of the policy proposals discussed in Germany and analyzes their impact using event study methodology. The event date identification follows a two-step procedure employing search engine query data from GoogleTrends and traditional search methods using Lexis-Nexis and newspapers. One key event produces negative significant cumulative abnormal stock returns (CAR) of approximately 1.3 percentage points. Further regression analysis of the CAR reveals that the share of women on the supervisory board of firms which were not planned to be subject to the mandatory board gender quota exhibits significant negative CAR around the event days. On the contrary, the effect of the share of women on the supervisory board is positively associated with the CAR for firms planned to be subject to the mandatory board gender quota. Thus, the implementation of a mandated quota was costly especially for shareholders of companies not affected by the mandatory quota.

Where Women Make the Difference. The Effects of Corporate Board Gender Quotas on Firms' Performance across Europe

We study the effect of corporate board gender quotas on firm performance in Belgium, France, Italy and Spain. The empirical analysis is based on accounting panel data from Bureau Van Dijk’s Amadeus. Our identification strategy relies on both double and triple difference estimators with ex-ante matching. We find that gender quotas had either a negative or an insignificant effect on firm performance in the countries considered with the exception of Italy, where we find a positive impact on productivity. We then focus on Italy and offer possible explanations for the positive effect of gender quotas using detailed information on board members’ characteristics.

The gender composition of corporate boards: A review and research agenda

In recent years, the composition of boards and, particularly, the inclusion of women on boards has attracted significant scholarly interest and public debate. In this article, I comprehensively review the academic literature on board gender composition. Using the systematic review method, I ask whether women directors really are different from men on boards, what factors shape board gender composition, how board gender composition affects organizational outcomes, and finally, why board gender quotas and other forms of regulation are introduced and what outcomes can be expected. Based on my findings, I develop a conceptual framework that clarifies the causal processes underlying both women's access to boards and the effects of women's presence on boards. Finally, I offer a research agenda designed to enrich our understanding of board gender composition.

Women and Leadership

Despite decades of progress relative to men in work and schooling, women remain severely under-represented among top corporate and political leaders. This chapter discusses the current status and recent progress of women in leadership positions, with a focus on the realm of corporate leadership. The effects of different public policy interventions aimed at increasing female representation are assessed, with particular attention paid to gender quotas for corporate boards and to the question of spillover benefits from female leaders to other women. The effects of gender quotas in politics are also discussed and compared with those of gender board quotas.

Mechanisms to promote board gender diversity in South Africa

Research purpose: Board gender diversity is gaining increasing attention globally and in South Africa. Although more women are serving on the boards of companies listed on the Johannesburg Stock Exchange (JSE), they only represent approximately one-fifth of all directors. This situation mirrors international trends. A review of the extant literature revealed three prominent mechanisms to increase the appointment of female directors, namely mandatory board gender quotas, voluntary targets and shareholder activism. The authors critically evaluated these three mechanisms with the aim of suggesting the most appropriate ones in the South African context.Motivation for the study: The study was undertaken given the paucity of comparative research on the three change mechanisms and the need to promote greater board gender diversity in South Africa.Research design: Judgement and snowball sampling were used to identify a sample of experienced local asset managers. Semi-structured personal interviews were conducted to gauge these individuals’ views on the applicability of these change mechanisms in South Africa. The qualitative data were analysed using thematic analysis.Key findings: Although the participants acknowledged the importance of board gender female board representation, none of them have engaged investee companies on the topic over the period 2011–2016. This study provides evidence that legislation is the least preferred mechanism to promote board gender diversity in South Africa. Voluntary targets and public pressure from shareholders might be more effective.Contribution: Whereas existing research mainly centres on the rationale for board gender diversity, this study goes a step further by investigating three prominent mechanisms to promote female board representation. A contribution is made to the body of knowledge on diversity management. Context-specific recommendations are offered.

Gender diversity in the Italian boardroom and firm financial performance

PurposeThis study aims to analyse the relationship between board gender diversity and firm financial performance in Italy, where the recently enforced Law 120/2011 prescribes gender quotas for boards of directors.Design/methodology/approachPanel data analysis was used to examine the gender diversity–firm financial performance relationship in an unbalanced panel of 918 Italian listed companies during the years 2011-2014.FindingsGender diversity, as measured by the percentage of women on a board and by the Blau and the Shannon indices, has a positive and significant effect on Tobin’s Q, while the presence of one or more women on the board per se has an insignificant effect on firm financial performance.Practical implicationsThe results suggest that board gender diversity is not a simple “numbers game”, greater gender diversity may generate economic gains, greater gender diversity does not destroy shareholder value, investors do not penalize companies that increase female representation on their boards and Italian companies should focus their efforts on the right mix of men and women rather than on simply the presence of at least one woman on a board of directors.Originality/valueMost articles on this topic use data from countries with a legal system based on common law; this paper analyses Italy, a country with a civil law system. This is almost certainly the first study to examine the effect of board gender diversity on firm financial performance in the Italian market.

Has the Push for Equal Gender Representation Changed the Role of Women on German Supervisory Boards?

In Germany, an intensive public debate about increasing female participation in leadership positions started in 2009 and proceeded until the beginning of 2015, when the German parliament enacted a board gender quota. In that period, the share of women on supervisory boards for 111 German publicly listed and fully codetermined companies (i.e. those which are affected by the quota law) more than doubled from 10.6 percent in 2009 to 22.6 percent in 2015. In 2016, the first year when the law was effective, the female share increased again by 4.5 percentage points. Using a hand-collected dataset, we investigate whether the rise in female board representation was accompanied by a change in gender differences in board member characteristics and board involvement. We do not find evidence for the Golden Skirts phenomenon, i.e., the rise in the female share was not achieved via a few female directors holding multiple board memberships. After controlling for firm heterogeneity, the remuneration of female shareholder (employee) representatives is about 16 (9) percent lower than for males. We interpret this as an overall indication that women are not only underrepresented in German supervisory boards, they are even more underrepresented in important board positions. Indeed, women are less likely to become a chairman and are less often assigned to board committees (except for the nominating committee). Moreover, in 2016 the disadvantage of women (as compared to men) to obtain a committee membership is even larger than in 2009.

Board Quotas and Director-Firm Matching

We study the impact of board gender quotas on the labor market for corporate directors. We find that the annual rate of turnover of female directors falls by about a third followingthe introduction of a quota in France in 2011. This decline in turnover is more pronounced for new appointments induced by the quota, and for appointments made by firms that regularly hire directors who are members of the French business elite. By contrast, the quota has no effect on male director turnover. The evidence suggests that, by changing the director search technology used by firms, the French quota has improved the stability of director-firm matches.

Is Gender Diversity Profitable? Evidence from a Global Survey

Analysis of a global survey of 21,980 firms from 91 countries suggests that the presence of women in corporate leadership positions may improve firm performance. This correlation could reflect either the payoff to nondiscrimination or the fact that women increase a firm’s skill diversity. Women’s presence in corporate leadership is positively correlated with firm characteristics such as size as well as national characteristics such as girls’ math scores, the absence of discriminatory attitudes toward female executives, and the availability of paternal leave. The results find no impact of board gender quotas on firm performance, but they suggest that the payoffs of policies that facilitate women rising through the corporate ranks more broadly could be significant.

Gender Quotas: Challenging the Boards, Performance, and the Stock Market

In 2011, Italy introduced gender quotas for boards of directors of companies listed on its stock market. Comparing before and after the reform within firms, we find that quotas are associated with a higher share of female board directors, higher levels of education of board members, and a lower share of older members. We then use the reform period as an instrument for the share of female directors and find no significant impact on firms’ performance. Interestingly, we find that the share of female directors is associated with a lower variability of stock market prices. We also run event studies on the stock price reaction to the introduction of gender quotas. A positive effect of the quota law on stock market returns emerges at the date of the board’s election. Our results are consistent with gender quotas giving rise to a beneficial restructuring of the board, which is positively received by the market.

Gender Quotas: Challenging the Boards, Performance, and the Stock Market

In 2011, Italy introduced gender quotas for boards of directors of companies listed on its stock market. Comparing before and after the reform within firms, we find that quotas are associated with a higher share of female board directors, higher levels of education of board members, and a lower share of older members. We then use the reform period as an instrument for the share of female directors and find no significant impact on firms' performance. Interestingly, we find that the share of female directors is associated with a lower variability of stock market prices. We also run event studies on the stock price reaction to the introduction of gender quotas. A positive effect of the quota law on stock market returns emerges at the date of the board's election. Our results are consistent with gender quotas giving rise to a beneficial restructuring of the board, which is positively received by the market.