Gender diversity and the spillover effects of women on boards

Abstract

Research Question/Issue This study seeks to understand the circumstances under which board behavior is affected by gender diversity. The “reasoned action approach” is used as a lens through which to assess the extent that the behavior of the board varies with its gender diversity. Research Findings/Insights The study uses archival data from a panel sample of 80,395 directorships observed between 1998 and 2012. Boardroom gender diversity is significantly related to director personal responsibility (board attendance), CEO accountability, and risk taking. Our findings highlight the key importance of the exposure of male directors to women directors on boards beyond the focal board. This suggests a positive externality or a spillover effect. Theoretical/Academic Implications The empirical findings of this study highlight the importance of allowing for the operation of social norms when studying boardroom decision making. Experience gained by male directors of working with women directors on other boards, beyond the focal board, is shown to enable women directors to contribute more effectively. Practitioner/Policy Implications This study offers encouragement to policy makers' intent on increasing the presence of women on corporate boards. These results point to a spillover effect: there is an observed impact of women on boards that acts not only directly on the board on which they sit but also through the network of boards on which their male counterparts sit. Video Abstract https://youtu.be/ZlADhUUdZrA

Diversity and disobedience at the top, pay incentives, social norms, and board reforms: A kaleidoscope of corporate governance research

“…The newly established category of Editor's pick articles was initiated by Boutchkova et al (2021) and their study on “Gender diversity and the spillover effects of women on boards.” Based on the reasoned action approach, the authors analyze the extent to which the behavior of the board is influenced by its gender diversity. Utilizing an impressive panel data sample of 80,395 directorships observed between 1998 and 2012, the results indicate that boardroom gender diversity is significantly related to director personal responsibility, CEO accountability, and risk taking.…”

“…The newly established category of Editor's pick articles was initiated by Boutchkova et al (2021) and their study on "Gender diversity and the spillover effects of women on boards." Based on the reasoned action approach, the authors analyze the extent to which the behavior of the board is influenced by its gender diversity.…”

The Influence of Female Directors and Institutional Pressures on Corporate Social Responsibility in Family Firms in Latin America

“…Many studies have considered the strategic importance of female directors in the company board (Almor et al 2019;Boutchkova et al 2020;Kolev and McNamara 2020), referring to various organisational and psychological theories that, on the one hand, identify benefits arising from their presence but, on the other, highlight the practical difficulties that may be encountered in materialising these benefits. These conflicting questions underlying gender diversity in company boards might explain why companies differ in their commitment to CSR.…”

Bank board changes in size and composition: Do they matter for investors?

“…Although there is a large body of research on the gender composition of boards, the literature does not provide a clear answer to the question of what effects can be expected from a more gender‐balanced board composition (Kirsch, 2018). The evidence of many studies examining the effect on the firm financial performance of boards with a greater proportion of women is inconclusive, finding positive, negative, or no results (Boutchkova et al, 2021; Campbell & Mínguez‐Vera, 2008; Chapple & Humphrey, 2014). Some studies have investigated the impact of gender diversity on bank performance with similar results (Arnaboldi et al, 2019; Adams & Ferreira, 2009; Bennouri et al, 2018; García‐Meca et al, 2015; Nguyen et al, 2015).…”