Mandatory Quotas Research Articles

Women on Boards

In recent years, the US, UK, and Continental Europe have pursued board gender diversity through markedly different means. Several European countries have imposed mandatory quotas, whereas the UK and US are relying on the endogenous mechanisms of social pressure and shareholder proposals respectively. Despite their obvious allure as a means of bringing about rapid change, evidence is mounting that European board gender diversity quotas may yield various deleterious side effects; and quotas may not be as successful in their core aim of promoting gender diversity as initial broad statistical measures indicated. In this paper we critique the European quota regime, and consider US shareholder proposals as an alternative change mechanism for improving gender diversity in corporate boards. We note the lack of shareholder representative democracy in Europe and conclude with the policy recommendation that, rather than extending quotas, European governments should focus on empowering shareholders.

Mandatory Quotas for Women on Boards of Directors in the European Union: Harmful to or Good for Company Performance?

Impact assessments are an important component of a better regulation programme—an initiative of the European Commission launched to improve the quality and transparency of the EU (European Union) law-making process. In the current article, I take a closer look at the Impact Assessment (IA) issued by the European Commission together with a Directive proposing a 40% obligatory female representation on the boards of directors in European public companies. In the IA, the Commission defined an improvement of corporate governance as one of the objectives to be achieved by the Directive. The Commission claimed that the more gender-diverse a corporate board is, the better it will perform. However, it is questionable whether mandatory quotas indeed have such a positive impact on corporate governance. Here I argue that, to properly assess the impact of a given policy, it is crucial to examine how the policy measure itself interferes with corporate performance. I present both field and laboratory studies investigating the influence of mandatory quotas on company performance, individual attitudes and group cooperation. Next, I discuss implications of these findings for the evaluation of the IA quality as well as the legality of the Directive. The current analysis of the IA shows that despite recent improvements there are still considerable flaws in conducting impact assessments of the EU legal initiatives.

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.

Opportunities and Challenges to Gender Quotas in Local Politics: The Case of Municipal Council Elections in South Korea

ABSTRACTThis paper explores the under-researched topic of women’s representation in local politics in Asia. Specifically, we investigate the kinds of opportunities and challenges regarding the issue of quotas, using the case of municipal council elections in Korea. Strongly enforced quotas in the proportional representation tier of the mixed electoral system have indeed worked favorably for women’s representation in local elections since the adoption of the quota law. Yet, we also note two distinct factors that challenge quotas at the local level in the country. First, party leaders initially agree to the idea of quotas to gain public recognition, but may lack commitment and show resistance when it comes to their actual implementation. Further, the general public consensus that favors reforms in order to bar party involvement in local politics as a way to achieve grassroots democracy, may place quotas at risk, as current laws require mandatory quota implementation in the parties’ candidate lists. We end our paper by highlighting the importance of grassroots democracy and that the key to achieve this goal is not only to guarantee transparency in the candidate nomination process, but also to ensure that parties commit to quota implementation.

The Relocation of the Iron Curtain to the Middle East: the Polish and Slovak Position Towards the EU Migration and Asylum Policy

The current EU migration and asylum policy crisis has been perceived to constitute one of the most serious challenges for European security. The attitude of fear and reluctance towards admission of cultural others (including: refugees, asylum seekers and the immigrants) has been particularly visible in the V4 countries. The aim of this paper is therefore to examine the grounds of such a position with reference to general European tendencies as well as specific features of attitudes of Poland and Slovakia as the representatives of V4 countries in the light of their particular economic and social situation. Due to volume limitations the author will focus mainly on the two presented States. The decision regarding choice of Poland arises from the fact that as the only V4 State it has voted in favour of the mandatory quota of relocation of 120.000 refugees. Instead Slovakia constitutes the most vivid example pro-European parties changing rhetoric for more national which is quite transparent for the V4 countries. The whole analysis has been conducted in the specific context of relocation of the symbolic division of Europe an replacement of ideological Iron Curtain with cultural Velvet Curtain which leads to the phenomenon of culturalisation.

The evolution of the support scheme for promoting renewable energy sources in Romania

The paper presents an analysis of the evolution of the support scheme for promoting renewable energy sources in Romania, following: the annual mandatory quotas of green certificate purchase and those achieved; the price of green certificates; the evolution of the RES-E installed capacity and implicitly of the investments in renewable energy sources; the structure of the installed power in RES-E (wind power plants, photovoltaic power plants, hydroelectric power plants with an installed capacity that is not larger than 10 MW, biomass power plants); the contribution of the renewable energy sources to the production of electricity in Romania.

Is there a positive link between corporate governance and board diversity? Lessons from Asia

One of the long term research questions for the multi-disciplinary study of corporate governance, has been the link between good governance and share price or other measures of value. This has been quite difficult to establish in either the legal or finance or management disciplines, but there appears to be clear evidence of corporate sustainability where quality governance practices are applied consistently. Isolating out individual factors, such as board structures, specific cultures and corporate policies, has been particularly difficult as there are so many permutations. There currently exists a significant volume of global research on the role of gender, as a part of the board composition and there are positive returns, with some caveats. This paper begins to examine and question as to whether there are positive links to a broader concept of board diversity, including gender, age and ethnicity. There have been a number of developments across Asia, including Japan, China, Singapore and Hong Kong, which provide a different paradigm from the traditional Australian comparisons with United Kingdom, America and even Europe. The hardest question is whether we should have targets or mandatory quotas.

Gender Quotas for Agricultural Boards: Changing Constructions of Gender?

This article explores the processes by which gender is given meaning through social interaction in boardrooms. In Norway, alongside mandatory quotas regulating the composition of Public Limited Company boards, voluntary quotas were designed to increase women's membership on the boards of agricultural co-operatives. This radical step to secure a minimum of 40 per cent women makes these boards an interesting site for investigating the construction of gender in a traditionally male-dominated organization. In the debate, arguments in favour of a quota accentuated diversity and differences between women's and men's competences, opinions and values. The analysis of interview data from the boards of four agricultural co-operatives suggests that equal representation is a muted, taken-for-granted value. Equality and diversity are not understood as incompatible ideas, and gender is produced dynamically through practice rather than constituted as an inherent, fixed attribute. Gender as difference is less pervasive than expected as women tend to be recognized as belonging to the gender-neutral category of a board representative despite any recognized differences. The study demonstrates that voluntary quotas may change the context and both challenge old assumptions and promote new understandings of gender in local situations

Recent changes in World University Rankings: an explorative study of Korea and Germany

Both Germany and Korea have recently attempted to improve their positions in worldwide university rankings, introducing major reforms with the aim of funding research clusters and groups. Additionally, Germany has opted to introduce elite universities and junior professorships. The THE-QS World University Rankings, a compilation published from 2004 to 2009, provides some evidence that the mean ranking of German universities did not improve during the observed period. This paper tentatively suggests that this may be due to the fact that Germany is lacking a publish-or-perish promotion system spanning the period from graduation to tenure. In contrast, Korea has implemented a number of “big-push” reforms such as mandatory English curricula, foreign professorships, and foreign-student quotas, all of which have apparently resulted in a massive “brain gain.” In addition, the Korean government’s efforts to make publications in acknowledged journals compulsory have dramatically improved Korea’s research output and apparently contributed to its sharp rise in the THE-QS World University Rankings. Though Korean universities surpassed German ones on average in the short run, the effects of the German academic reforms await further ranking evidence in the long run. Further drawbacks and advantages of the system in Korea and Germany are critically discussed.

“But Many of These Problems are About Funds…”: The Challenges Immigrant Settlement Agencies (ISAs) Encounter in a Suburban Setting in Ontario, Canada

A large number of studies have focused on the neoliberal political and economic restructuring of non-profit immigrant settlement agencies (ISAs) through a policy analysis framework. While policy analysis is key to determining how resources are distributed among non-profit organizations, the challenges that ISAs encounter in planning and delivering services extend beyond limited financial resources in the sector. This research focuses on the system-level challenges ISAs encounter in planning and delivering services to newcomers in the suburban municipality of the Peel Region, Ontario, Canada. Twenty-one semi-structured interviews were conducted with frontline staff and executive directors in settlement organizations in Peel Region, Ontario, Canada, to understand the complex challenges they face within a highly federalized and neoliberal policy environment. The results indicate that although funding dollars are a large concern for ISAs, the conditions attached to funding, such as the types of programs settlement providers are able to offer, mandatory quotas, and restrictive eligibility criteria, hinder ISAs from being able to plan and implement programs that better respond to the needs of immigrants in Peel Region. The results also demonstrate that restrictive funding criteria contribute to competition with other ISAs for limited resources and challenge the structure and continuity of programs. Many of these challenges are exacerbated by the transportation system unique to suburban settings.

The Transfer of Gender Equality Norms from Europe to Asia Through the Spread of Corporate Gender Quotas

After Norway introduced a mandatory quota for women on corporate boards, a number of other European countries have followed suit. While the post-financial crisis regulatory reforms contributed to increased focus on getting more women on corporate boards from a business point of view, concerns of gender equality have been simultaneously cited as justification for these laws. In this paper, we examine the potential of corporate quotas to improve gender equality. We then analyse the diffusion of corporate gender quotas from Europe into two countries in Asia – Malaysia and India. We find that market pressures and the push for development along-side goals of promoting gender equality are responsible for the diffusion of these laws into these two Asian countries.

Turkey’s long-term generation expansion planning with the inclusion of renewable-energy sources

According to the Turkey’s energy supply policy, the main target on electricity generation is to increase the share of renewable-energy usage to above 30% by the year 2023. However, the steps taken to achieve this goal are being realized away from a long-term generation planning. The aim of this study is to examine the situation of renewable-energy sources, considering the Turkey’s generation planning and determine its contribution to overall generation together with its electrical and economic consequences. In the study, optimization of generation expansion planning (GEP), which covers the 2012–2027 planning horizon, was performed by using genetic algorithm (GA). The share of renewable sources to be installed for all source types was determined as 8.08%. Furthermore, the effects of reserve capacity level and rate of constraints on sources were investigated. The share of these sources can be increased by encouragements like tax deductions, mandatory quota application or carbon emission trade.

Multiple Layers of Gender Diversity on Corporate Boards: To Force or Not to Force?

This article examines diversity on corporate boards, focussing on gender diversity and taking both contemporary and historical perspectives. Australia forms a particular focus of this article, but, as far as mandatory quota legislation is concerned, other jurisdictions provide comparisons. The authors illustrate how Australian corporate board gender diversity is starting from a low base in contrast to some other types of boards. Arguments for and against more women on boards are analysed in order to provide a comprehensive examination of extant research. The article also examines briefly whether a business case can be made for board gender diversity within the wider framework of board diversity. The authors acknowledge that there are unanswered questions about the right gender balance on boards and whether, without mandatory quota legislation, a voluntary system can achieve best practice targets. They explore the notion of critical mass - the idea that, upon board representation reaching approximately 15 per cent, efforts to further redress the imbalance may lose momentum. Their conclusion is that, in the Australian jurisdiction, progress is being made belatedly towards increasing gender diversity on corporate boards. However, substantial challenges are envisaged if significant progress is not made imminently to increase the number of women serving on corporate boards.

Gender Diversity in the Boardroom. Context and Spanish Case

Gender Diversity in the Boardroom. Context and Spanish Case

Strategic and Regulatory Approaches to Increasing Women in Leadership: Multilevel Targets and Mandatory Quotas as Levers for Cultural Change

While substantial evidence is emerging inter- nationally of positive increases in the participation of women on company boards, there is less evidence of any significant change in the proportion of women in senior executive ranks. This paper describes evidence of positive changes in the number of women on boards in Australia. Unfortunately these changes are not mirrored in the senior executive ranks where the proportion of women remains consistently low. We explore some of the reasons for these disproportionate changes and examine the likely effect of the recent amendments to the Australian stock exchange's corporate governance code designed to improve gender diversity both on boards and throughout organisations. Based on the early corporate response to these regulatory changes, it is interesting to consider whether Australia's approach in promoting voluntary self-regulation at the corporate level may be as effective in the long run as the emerging trend in Europe to apply legislated quotas for female corporate board representation. Interview evidence is presented suggesting that the primary reasons for the lack of women in leadership are not simply lack of opportunity at the apex of the corporation, but issues at mid-management level that are unlikely to be resolved by mandatory board quotas. In some circumstances carefully monitored voluntary targets may be more effective at promoting cultural and strategic change at the heart of the corporation. In summary, mandatory quotas (set through hard law usually with sanctions for noncompliance) may achieve early and significant results in terms of female board representation. However, voluntary targets for women's participation on boards and in executive ranks (proposed in soft regulation such as corporate governance codes and set as part of corporate strategy) may promote more effective cultural and practical change in support of greater representation of women in leadership.

Advancing Women in Leadership: Multi-Level Targets and Mandatory Quotas Impact on Cultural Change

The developing worldwide movement for gender equality has focused in recent years on the participation of women at the pinnacle of organisations, in boards of directors and senior executive ranks. A recurring question is whether this will fundamentally change the position of women in work, or simply enhance the career structure of a few fortunate women? This paper contributes to the literature by taking the analysis beyond the form of regulation used by governments, to the behavioural changes they hope to effect. The paper informs regulatory theory by exploring the potential effects of voluntary self regulation compared to mandatory regulation. Following an analysis of the case for and against quotas and targets, we argue that if the regulatory objective is to stimulate cultural change within corporations, a flexible, voluntary regime could in some circumstances be more effective than a mandatory quota system. Yet no approach is likely to be effective unless there is in place a solid platform of provision...

Gender diversity in the boardroom: Context and Spanish case

Gender diversity in the boardroom: Context and Spanish case

Analysis of Financial Parameters for a Combined Photovoltaic/LED Intelligent Lighting Low Voltage Distributed Generation

Romania has a good natural potential for all renewable sources: solar, wind, biomass, geothermal. To reach at economic practicability of renewable energy sources (RES), Romania needs to accelerate the development of the national RES industry and to remove several legal and administrative barriers. To develop the potential of RES and reach the targets, Romania has established a legal and institutional framework appropriate for promoting the use of renewable energy sources. According to the Directive 2009/28/EC on the promotion of the use of energy from renewable sources the target for the share of energy from renewable sources in gross final consumption of energy in the year 2020 for Romania is 24%. In Romania there is a mandatory quota system accompanied by Green Certificates (GC) system. For the period 2020-2030, the quotas shall be set through a governmental decision and cannot be lower than the quota for 2020. The research is about of renewable energy sources implemented by a photovoltaic system in a pilot project and the electricity used in in-house consumption. The objectives consist in producing of electricity from renewable sources (solar-photovoltaic sources), environment protection, using the new technology and energy efficiency having in attention for better human life.

Spatial Implications of Using Firm Level Quotas to Employ Low Productive Workers

AbstractMany Western countries struggle with the realisation of an inclusive labour market: a labour market in which everyone can participate and disabled or otherwise vulnerable, disadvantaged and low productive people can take part in the real labour market to the best of their abilities. Following countries like Germany and Austria, the latest Dutch policy proposal is to introduce mandatory quota for employers with more than 25 employees to create job openings for the disabled for 5 per cent of their workforce. A first calculation of possible job openings shows that from a national perspective a mandatory quota seems promising. However, due to differences in the regional economic structure the arrangement will not be sufficient to solve spatial inequalities in regional exclusion of disabled at the level of municipalities nor for larger regions at the NUTS 1 level like the North of the Netherlands. We conclude that more attention should be paid to the spatial variation in impact when the national government decides to decentralise the implementation of national policy measures to municipalities.

실물옵션을 활용한 RPS 실시에 따른 태양광 발전의 경제성 평가: 공급의무 발전사와 일반 발전사와의 비교

This study reviewed how the changes of the government policy on solar power generation projects affected the annual mandatory quotas of the regulated power providers under the RPS (renewable portfolio standard) system and analysed economic feasibility of the investment for meeting their quotas as compared to the case of non-regulated power providers. The analysis results showed that under the discount rate of 7.5%, which was used for the annual national electricity plans for the recent years, both the regulated and non-regulated power providers achieved economic feasibility under both the NPV (net present value) method and the real option pricing method. It was also shown that higher profitability was attained by non-regulated power providers than by their regulated counterparts, which can be attributable to the fact that regulated providers are required to out-source 50% of the total quota. The results of this study are considered to be useful for establishing a meaningful mid term or long term strategy for the future of solar power generation linked to the current RPS system.