Mandatory Quotas Research Articles

The effects of mandatory quota policy on employment of disabled workers in Korea: a regression discontinuity design approach

ABSTRACT Managing the employment of people with disabilities has been a long-standing policy priority. A common policy tool for this purpose is mandatory quota policy, which is currently adopted in over 100 countries. However, knowledge regarding the genuine empirical effects of the policy net of auxiliary financial incentives remains limited. This study aimed to address this knowledge gap. Leveraging the unique setting of South Korea, where the thresholds for mandatory quotas and financial incentives differ, we estimate the direct effects of mandatory quotas using a rigorous quasi-experimental regression discontinuity design. The findings indicate that the quotas increased the employment of disabled workers even in the absence of explicit financial incentives, but also that the effects were heterogenous by different types of disabled employees, with male, full-time, and mildly disabled workers benefiting the most.

Mandatory Quotas and Women’s Representation on South African Mining Boards: Levelling the Field or Perpetuating Inequalities?

Mandatory Quotas and Women’s Representation on South African Mining Boards: Levelling the Field or Perpetuating Inequalities?

Moderating role of gender diversity in the relationship between intellectual capital efficiency and corporate performance

PurposeIn today’s knowledge-based economy, companies are hugely driven by intangible resources such as intellectual capital. However, whether corporate governance of a company drives intellectual capital is less explored in emerging economies. We examine the impact of intellectual capital efficiency on firm performance for Indian firms, considering the moderating role of board gender diversity.Design/methodology/approachWe have created a framework for panel data analysis and conducted estimation using the dynamic panel data model to control for endogeneity and heteroskedasticity issues. We use alternate performance and gender diversity measures for our sample of top 500 listed companies for a period of six years, that is 2015–2020.FindingsThe results demonstrate a significant positive association between intellectual capital and performance. However, moderating impact of gender diversity on the relationship between intellectual capital and performance is not significant.Practical implicationsThe findings indicate that IC plays a crucial role in a company’s performance, which may boost economic growth. Further, the findings reveal that despite the mandatory quota for women on boards in Indian companies, their impact on IC is subliminal. It may be because the critical mass is yet to be achieved, which should be considered by policy-makers while framing policies in this area.Originality/valueOur study is one of the foremost studies to consider the impact of mandatory gender quotas while examining the association between tangible and intangible firm performance. It makes an incremental contribution to literature to enrich our understanding on the influence of gender diversity on intellectual capital-performance linkages.

The French approach to promoting gender diversity in corporate governance

An increasing number of countries are adopting policies on gender diversity in corporate governance. Some regulators believe that non-binding recommendations, or ‘soft law’, are sufficient and that stakeholder social pressure will promote diversity. Others argue that ‘hard law’ is needed, including mandatory quotas with sanctions for non-compliance. Both sides believe that increasing gender diversity on boards of directors is necessary to promote diversity in executive committees and other top management positions. Empirical evidence from France sheds light on this debate. Initially, the country supported the ‘soft law’ approach. However, following the Norwegian example, France passed the Copé-Zimmermann law in 2011, which imposed a mandatory quota of 40% gender diversity on boards of directors by 2017. In 2021, the French parliament passed the Rixain law, recognising the limited progress of the previous law and setting a mandatory quota of 40% on boards by 2029. This law was the first of its kind in Western countries.

Does the Cultural Dimension Influence the Relationship between Firm Value and Board Gender Diversity in Saudi Arabia, Mediated by ESG Scoring?

The scarcity of female directors on Saudi boards is linked to cultural and social barriers deeply rooted in traditional masculine norms. Our study investigates the mediating role of ESG scores in the relationship between board gender diversity and firm value within the Saudi context. The Structural Equation Model (SEM) was utilized based on a sample of 54 Saudi-listed financial companies on (Tadawul) during 2021–2022. The study unveiled a negative correlation between female director presence and Saudi firm value. This association is attributed to the prevailing male-dominated Saudi societal norms, where boards with more female members may hesitate to prioritize performance-driven actions due to concerns about their perceived legitimacy within traditional gender roles. Conversely, a positive correlation was observed between female director presence and ESG scores, aligning with existing research highlighting the role of board gender diversity in improving sustainability performance. The sustainability framework prevails over the influence of gender diversity, fully integrating it within the broader context of sustainability to enhance the value of Saudi companies. Our results are consistent when considering alternative measures of firm value. Our findings offer valuable insights for investors assessing board gender diversity’s impact on company value and emphasize the role of gender diversity in enhancing sustainability. They suggest that greater female representation on boards is vital for ESG score improvement, promoting sustainable initiatives and overall firm value. This calls for policymakers to promote sustainability disclosures and establish guidelines for increased female board participation, considering the absence of mandatory quotas.

Analysis of the tripartite evolutionary game in the marketization of China’s renewable energy-based electricity prices

The evolution of China’s renewable power pricing regulation from subsidy-driven fixed feed-in tariffs (FIT) to market-oriented, quota-based renewable portfolio standards (RPS) is a crucial institutional transformation designed to advance the low-carbon energy transition. The government’s price regulation of mandatory and non-mandatory quotas has a direct impact on the optimal production decision-making behavior of renewable and coal-fired power producers, which determines the effective substitution of fossil energy by renewable energy in China, and relates to the successful realization of the low-carbon energy transition. This article presents the construction of a tripartite evolutionary game model under both non-mandatory and mandatory quotas, employing MATLAB software to simulate and assess the effectiveness of a tradable green certificate (TGC) system in the presence of mandatory quotas. Based on stable equilibrium strategies, we discuss the impact of FIT on green certificate trading under four different subsidy withdrawal strategies and three quota and penalty scenarios. The results indicate the following. First, when renewable power producers certify and engage in green certificate trading, coal-fired power producers purchase green certificates, and the government implements mandatory quotas, the participants in the game achieve an equilibrium strategy combination. Second, the findings validate the effectiveness of the RPS–TGC model (i.e., the green certificate trading system in the presence of mandatory quotas) for electricity price regulation. Third, the root cause of the failure of China’s current voluntary green certificate trading system is the government's non-mandatory quotas. Accordingly, it is proposed that the marketization of renewable electricity prices in China needs to adopt a fast-then-slow exit of FIT subsidies, with renewable energy power quotas set at 20% and penalty standards set at 1.5P.

The Introduction of Sustainable Aviation Fuels—A Discussion of Challenges, Options and Alternatives

The aviation industry is challenged to reduce its climate impact. The introduction of sustainable aviation fuels (SAF) is, among other policy instruments such as the European Emissions Trading Scheme, an option favored by policymakers in Europe to achieve this objective. These fuels feature substantially reduced carbon life-cycle emissions in comparison to fossil fuels. In Europe, a mandatory quota for the use of sustainable fuels will most likely be introduced, starting in the year 2025. The introduction of a blending mandate by governments and the European Commission is associated with a range of challenges. The purpose of this paper is to discuss the economics of climate change mitigation in aviation and the role SAFs can play. The economic issues associated with the introduction of SAFs are analyzed, with a particular focus on the European Commission’s proposal for a blending mandate. Several suggestions for improvement are discussed. Furthermore, alternatives to SAFs are presented and evaluated.

Gender diversity in Italian listed companies: Female directors’ roles and corporate performance

The study examines gender diversity in a sample of Italian listed companies. Specifically, we study the effect of the percentage and the role of women directors in the boardroom in affecting firm performance. Using data from Italian listed firms during the period 2006–2015, the aim is to show the effect arising from the introduction of Italian Law 120/2011, which forces the listed companies to reserve a mandatory quota for female directors on the board. The results show that increasing the percentage of female directors leads to superior financial performance. However, focusing on the roles of female directors, we observe that the percentage of executive female directors is not correlated with firm performance. Diversely, companies with a higher percentage of independent female directors are associated with better firm performance.

GENDER DIVERSITY ON BOARDS OF DIRECTORS IN JOINT-STOCK CORPORATIONS IN TURKEY: COMBINING HARD AND SOFT LAW

The under-representation of women on corporate boards has received increased attention in terms of corporate governance over the last decade. The necessity of gender diversity on corporate boards is mostly based on economic rationale, which is insufficient due to two reasons; first, it is not always possible to find a correlation between female participation on boards and the interests of the shareholders, and second such a correlation for male members of the board is not sought. The economic rationale needs to be reinforced with an equality rationale that emphasizes women's rights to promote gender diversity on corporate boards. Equality rationale is precisely what corporate governance regulations can provide.It is debatable which type of regulation is the most effective among the strategies to increase the share of women on the boards. The regulations can be grouped under two broad types. The first includes the introduction of mandatory quota for women on boards, along with sanctions. The second approach is of a more voluntary character. The Corporate Governance Principles of Turkey, which regulates gender diversity on the corporate boards, have been drawn up with the latter being preferred. However, statistics show that Turkey is showing slow progress in this regard. This signals that the soft law approach did not have the desired impact on increasing the proportion of women on the corporate boards.

Despite the large flow of scientific publications devoted to the procedure for mandatory medical examinations by minors during employment, the problems of regulatory regulation of this procedure in the Russian Federation are currently insufficiently investigated. Analyzing the norms of Russian legislation regulating the procedure for medical examinations of minors in the Russian Federation, the authors came to the conclusion that

Despite the large flow of scientific publications devoted to the procedure for mandatory medical examinations by minors during employment, the problems of regulatory regulation of this procedure in the Russian Federation are currently insufficiently investigated. Analyzing the norms of Russian legislation regulating the procedure for medical examinations of minors in the Russian Federation, the authors came to the conclusion that one of the most possible solutions to the problem of employment of adolescents associated with the passage of medical examinations by minors, or rather with the financing of this procedure, would be an increase in additional (economic) guarantees suppressing the employer's reluctance to conclude an employment contract with minors. That is why, at the legislative (federal) level, it is necessary to establish mandatory quotas of places for the employment of minors for certain types of work, which in itself is an additional guarantee of hiring this category of workers as particularly in need of social protection.

MIGRASI DAN XENOFOBIA: ANALISIS KEBIJAKAN MIGRASI TERTUTUP HONGARIA ERA PERDANA MENTERI VIKTOR ORBÁN

Hungary is a European Union (EU) member state that has received international attention for its migration policy. While other EU member states assisted each other in accepting the refugee relocation program in response to Europe's immigration crisis, Hungary refused it. This cannot be separated from Prime Minister Viktor Orbán's leadership figure. As a result, the purpose of this article is to analyze why Hungary's migration policy is so stringent and restrictive. Using framing theory and qualitative analytical methodologies, this article proves that the Hungarian government purposefully constructed a xenophobic narrative platform. Furthermore, the renewal of migration strategies has always been restricted, as evidenced by the existence of: amendments to the Government Decree and the Asylum Act; rejection of the EU's mandatory quota system; and the existence of a selective-racism and deeply-rooted racism within the Hungarian state.

Do women on boards enhance firm performance? Evidence from top Indian companies

This paper examines whether gender diversity (GD) on corporate boards influences financial performance (FP) of Indian firms using System Generalized Methods of Moments (GMM) methods by considering panel data of 364 firms during 2017 to 2021, comprising of 1820 firm-year observations. The study reveals that the mere presence of a woman director (WD) on boards makes no difference in financial performance. Presence of WDs as a significant portion of the boards and their active roles in the functioning and governance of companies positively contribute to firms’ financial performances and economic value creation. Regarding other governance parameters, the study shows that larger boards do not necessarily improve firm performance. Also, independent directors do not necessarily add value to corporate performance and value creation. While a higher promoter's stake is an important factor for Indian companies to drive corporate performance, firms with separate CEO and chairperson outperform firms with CEO duality. The study also reveals that the covid 19 pandemic has negatively influenced the financial performance and economic profit generation of the Indian firms. This study is important for several reasons. First, this study considers the period (2017–2021) when Indian companies adopted new financial reporting practices (IND-AS) in line with International Financial Reporting System (IFRS), the mandatory quota system of women directors’ appointment is implemented and new corporate governance norms are implemented. Hence, our study contributes to the literature by proving meaningful insights on the role of gender diversity and other corporate governance parameters on financial performance of Indian firms in the light of newly adopted accounting and financial reporting practices. Second, few previous India based studies have mostly used pooled OLS or fixed effect models, and did not address the endogeneity problem in different forms like Dynamic Endogeneity, Simultaneity, and Unobserved Heterogeneity. This paper addresses the endogeneity problem appropriately by using the system generalized method of moments (GMM) while modelling the relation between WDs and firms’ FP. Therefore, the findings of this study are more reliable and unbiased and can be useful for effective policy making on gender diversity and corporate governance issues. Third, few prior studies which have looked into the role of WDs on FP of Indian firms, have mostly used return on assets (ROA), return on equity (ROE) and Tobin’s Q as performance parameters. Here, in addition to ROA, ROE and Tobin’s Q, we also use economic value added (EVA) as indicators of corporate performance to understand the role of WDs on economic value creation for companies. The EVA is considered as modern technique to measure the economic profit earned by a firm, and it has gained huge popularity among companies as an improved technique for measuring financial performance for companies. To the best of our knowledge, the role of WDs on economic value creation by firms has not been investigated before particularly in the Indian context. This is another unique contribution of this study. Fourth, the Covid 19 pandemic had impacted global economy severely and India was no exception. Financial performances of most Indian firms were negatively impacted due to the nationwide lockdown and uncertainties about production, revenue and earnings. This study considers both the pre and post Covid 19 pandemic period in examining our central research question using a year dummy. Therefore, our study also captures whether the covid 19 pandemic has actually impacted the financial performance of Indian firms, while modelling this relation. This is another valuable and unique contribution of this study to the literature. The findings of this study provide an understanding of how board gender diversity and other governance parameters influence financial performance of Indian firms in an emerging market context. The outcomes are also explained and aligned with the relevant policy implications in the light of recent Indian corporate governance norms and policies. These findings are useful to the companies and policymakers, as they can use these findings while designing effective boards, which can be useful in improving firm performance. Board of directors, investors, regulators, and policymakers can effectively use these findings to understand how gender diverse boards and other corporate governance parameters influence firms’ financial performance under the concentrated ownership pattern.

The missing theory for regulation and law-making: women in corporate leadership

ABSTRACT While enough ink has been spilled debating boardroom gender diversity, there is little analysis from a regulatory standpoint in relation to the divergence found in legal strategies across countries. It is this gap which this article seeks to address. In doing so, the article explores the nexus between the rationales and the policy approaches/legal strategies adopted by countries, through the specific comparative examples of Norway and the United Kingdom. This methodology, akin to reverse engineering, helps to explain what determines a country's choice for a mandatory quota or discretionary targets. While offering this explanation, the nuances of hard law versus soft law as policy approaches are examined, specifically within the realm of corporate governance. Next, based on the connections so deduced, an attempt is made to theorise how a legal strategy is derived, and, furthermore, how an optimum strategy can be formulated, although subject to national context.

Board gender diversity and women in leadership positions – are quotas the solution?

PurposeThe question has been asked, “Where are the women?” explicitly looking at the public relations (PR) industry, but this is a broader issue reflected in many senior management roles, especially at the corporate board level. One of the solutions suggested is “quotas”. This paper explores the literature to identify the prominent arguments for and against representation regulations (quotas) concerning corporate board gender diversity and concisely presents the findings.Design/methodology/approachThe exploratory research path first focuses on a literature search using the keywords – “gender diversity”, “board structures” and “female traits” to identify the various issues concerning female members serving on corporate boards. This led to the investigation exploring if 'quotas' could play a role in increasing the number of female directors and, if so, what kind of impact this would have. When the authors discovered the paper by Place and Vardeman-Winter (2018), it was realised that a possible gap in the literature might have been identified. The focus then turned to the PR and corporate communications literature, where it was discovered that the issue of gender quotas was not explored. This paper brings together the germane literature from a wide range of disciplines. To obtain a broad perspective of the arguments, the authors conducted a review of this diverse field of literature through various databases and websites, including Scopus, Web of Science, ScienceDirect, Google Scholar, publishers' databases such as Emerald Insight, Taylor and Francis, Macmillan, Blackwell, Oxford University, etc.FindingsThere are solid arguments both for and against quotas. However, many opposing views appear to be less sound than the positive ones, which allowed the authors to concur in favour of quotas and the broader adoption of female directors. It is only by identifying problems that solutions can be found – the issues concerning corporate board gender quotas relate to the perception of the arguments for and against quotas; the reality is often different. While there is a strong “business case” and “stakeholder influence” for the inclusion of women on corporate boards, some governments have put further pressure (either voluntary or mandatory) on organisations by imposing a “quota” system. At the same time, other countries are undecided on what action, if any, to take.Practical implicationsThis paper can serve as guidance to countries that have not yet implemented quotas or those looking to move from a voluntary to mandatory quotas system. In addition to that, the paper should be valuable to academics, managers, regulators, legislators and policy-makers.Originality/valueTo the best of the authors knowledge, this is the first academic paper to present the critical arguments raised in the diverse literature on corporate board gender quotas succinctly and concisely and, therefore, adds value to the literature. It is also believed to be the first paper to address the issue of quotas in the PR and corporate communications literature.

Gender Quotas for Political Participation and the Case of Georgia

The current study focuses on the key elements limiting the political representation of women in the modern world. In order to eliminate discrimination, some countries introduce gender quotas for political participation. Studying the legal framework of modern Georgia shows that, despite the existing common legal basis for the equality of women and men, the reality in political life is different. The lack of effective quota mechanisms significantly weakens the realization of womens civil and political rights. Stereotypical attitudes and perceptions about the role of women in society are the main barriers to recruiting in the political and administrative deployment. Considering the gender aspect of political representation as a complex problem necessitated a systematic approach. The historical and comparative method was used to study the evolution of gender equality. A separate group of methods used in the article was made up of the political and legal analysis of empirical database national statistics. The article shows how the Georgian Parliament affects the position of women in politics by introducing mandatory quotas for national and local government elections, increasing the likelihood of women running, being elected and appointed.

Gender and Corporate Crime: Do Women on the Board of Directors Reduce Corporate Bad Behavior?

Public debate on mandating gender representation on boards of directors in the United States is close to a boiling point. California introduced a mandatory quota in 2018 only to see it constitutionally disqualified in 2022, and the Nasdaq Stock Market followed suit with new diversity rules in 2021 for all corporations listed on the exchange. While public discourse focuses on corporate performance, not much is known about the link between gender diversity and corporate normative obedience. In this study we explore the relationship between boardroom gender representation and corporate compliance with the law. We examine the impact of gender diversity on corporate obedience in a sample of 660 public corporations. Our findings indicate that gender diversity has a substantial positive impact on corporate compliance. Notably, every one percent increase in female representation on the board is associated with at least a four percent decrease in the probability that the corporation will be associated with a violation of the law. The key contributions of this Article to the literature are threefold: First, the findings of this Article call for an empirical reevaluation of gendered theories of female white-collar offenders. Second, this Article adds a unique perspective to the broad discussion of environmental, social, and governance (ESG) aspects of corporate purpose. Third, this Article sheds innovative light on the discussion about corporate social responsibility (CSR) and the means to enhance it.

Women directors in Italy: 1913–2017

Corporate elites have been male bastions until very recently and businesswomen have been very few and difficult to track. This paper addresses this topic by investigating the presence of women among the directors of the top 250 Italian joint-stock companies in eleven benchmark years spanning from 1913 to 2017. It shows a male preponderance throughout the period investigated. Women were nearly totally excluded from Italian boards until the end of the 20th century and their number showed a sizeable increase only after the turn of the century. Women also occupied marginal positions in the boards: very few of them held multiple directorships and the first female interlocker appeared only in 1972. In a country dominated by family capitalism, for a long time the very few women directors sat on the boards of family firms and were members of the families that owned these firms. The presence of women in Italian corporate boards was boosted in recent years by the introduction in 2011 of mandatory gender quotas for listed firms and for firms participated by the state. This law provided legitimacy to the appointment of women on boards also in other firms not affected by the new regulation. The massive increase in seats held by women led to a professionalisation of female directors in Italy, even though women are still largely excluded from top executive positions.

Saying ‘No’ to Immigration Quota: An Analysis of Evaluative Language in Hungarian and Romanian Political Discourse

Abstract One of the most controversial issues during the 2015 migrant crisis and the subsequent process of reformulating immigration policies by the European Union was that of the mandatory resettlement quota. Hungary and Romania formulated very different positions related to migration, but both were critical regarding the mandatory quota. This study analyses parts of declarations and speeches of two heads of state, Viktor Orbán for Hungary and Klaus Iohannis for Romania, concerning the quota issue, by employing the framework of evaluative language, which focuses on the dialogic, interpersonal aspects of utterances. Beyond the fact of rejecting the quota, Martin and White’s (2005) taxonomy brings to the forefront the linguistic means through which the two speakers evaluate the subject (a problem of logistics that needs a pragmatic approach or a matter of cultural and national identity) and establish (dis)alignment as representatives of their countries (“official voices” of Hungary and Romania) with regard to the EU position.

Higher Means Harder for Female Descriptive Representation? Women with Family Responsibilities and Party Primaries for Local, Regional and National Chambers in Spain

ABSTRACT Despite academic interest in the negative effects of primaries on gender descriptive representation, we have little evidence on how this impact varies across territorial levels, especially among women with family responsibilities. We focus on Spain as a multilevel polity (national, regional, local chambers) with mandatory quotas to show that very few females with family responsibilities are selected in primaries at upper territorial levels. While primaries frequently facilitate women becoming local councillors, this method seems to exclude those with family responsibilities at regional and national levels where, to fulfil gender quotas, female candidates are more commonly appointed by the party elite. This process has repercussions since representatives selected by the leadership tend to be more disciplined and homogeneous than those selected in primaries.

Gender Quotas for Corporate Boards: A Comparison Between Belgium and the Netherlands

This article discusses and compares Belgian and Dutch gender quota legislation. In Belgium, a mandatory quota that imposes sanctions for non-compliance was introduced in 2011. From 2013–2020, a target figure (streefcijfer) was in force in the Netherlands. This target figure applied on a comply-or-explain basis with no sanctions for non-compliance. The Netherlands is currently in the process of introducing mandatory gender quota, as the target figure did not yield the desired result of increasing the number of women on boards to the required level. This article discusses the key features of the Belgian mandatory quota and of the Dutch former target figure and proposed mandatory quota. Subsequently, this article compares the Belgian and Dutch quota legislation in terms of introduction of the quota, scope, application, implementation deadlines and sanctions. The analysis of the existing Belgian quota and the proposed Dutch quota legislation reveals that there are some similarities with regard to their application and sanctions. This article concludes with a discussion about what the Dutch legislator can learn from the Belgian gender quota legislation in order to succeed in increasing the number of women on corporate boards in the Netherlands. gender equality, gender quota, women, corporate law, corporate governance, women on boards