We analyze investors’ perception and long-term effects of board gender diversity on firms’ stock market performance in an international setting. Our results, controlling for the endogenous nature of board compositions, indicate that female board representation neither improves nor reduces firms’ long-term stock performance. Hence, we argue that it is imperative to go beyond the conventional thinking in terms of the business case for gender diversity and broaden the perspective also to incorporate societal and ethical aspects in the strive to board (...) gender equality. Even more so, as our results show that it does not entail reduced shareholder value, which the literature on mandatory gender quotas commonly seems to suggest. (shrink)

This study investigates the effect of country-level emancipative forces on corporate gender diversity around the world. Based on Welzel’s theory of emancipation, we develop an emancipatory framework of board gender diversity that explains how action resources, emancipative values and civic entitlements enable, motivate and encourage women to take leadership roles on corporate boards. Using a sample of 6390 firms operating in 30 countries around the world, our results show positive single and combined effects of the framework components on board gender (...) diversity. Our research adds to the existing literature in a twofold manner. First, our integrated framework offers a more encompassing, complete and theoretically richer picture of the key drivers of board gender diversity. Second, by testing the framework empirically, we extend the evidence on national drivers of board gender diversity. (shrink)

This paper analyzes the determinants of women’s representation on boards of directors based on a panel of all privately owned or listed Danish firms with at least 50 employees observed during the period 1998–2010. We focus on the directors who are not elected by the employees and test three hypotheses on female board representation that we denote the female-led hypothesis, the tokenism hypothesis, and the pipeline hypothesis, respectively. We find evidence rejecting the female-led hypothesis. Firms with a female chairperson on (...) the board of directors tend to have significantly fewer other non-employee-elected female board members. We also find clear evidence of a tokenism behavior in Danish companies. The likelihood of enlarging the share of non-employee-elected female board members is significantly smaller if one, two, or more women have sat on the board of directors. Finally, the pipeline hypothesis is partly confirmed. The relation between the female pipeline of potentially qualified directors and female directors is weaker than the similar relation for males. Our findings offer insights to policy makers interested in promoting gender diversity within boardrooms. Our empirical evidence suggests that an important way to increase the female proportion of non-employee-elected board members is that more women reach top executive positions. (shrink)

This paper investigates the relationships among board gender diversity, firm performance, and firm size. Our paper provides new insights into the relationship between board gender diversity and firm performance by examining whether firm size alters the impact of board gender diversity on firm performance. We use a panel data from A‐share‐listed non‐financial firms in China to examine the relationship during the period of 2007–2012. Our finding demonstrates that the gender diversity on the board has a positive impact on firm performance (...) if and only if the value of firm size is less than some critical value. In addition, we also find that firm size may undermine the positive impact of board gender diversity on firm performance. This paper contributes to the literature by offering a contingency approach to examine the relationship between board gender diversity and firm performance as well as shedding light on the relationship in the context of a developing economy. (shrink)

The under-representation of women on boards is a heavily discussed topic—not only in Germany. Based on critical mass theory and with the help of a hand-collected panel dataset of 151 listed German firms for the years 2000–2005, we explore whether the link between gender diversity and firm performance follows a U-shape. Controlling for reversed causality, we find evidence for gender diversity to at first negatively affect firm performance and—only after a “critical mass” of about 30 % women has been reached—to (...) be associated with higher firm performance than completely male boards. Given our sample firms, the critical mass of 30 % women translates into an absolute number of about three women on the board and hence supports recent studies on a corresponding “magic number” of women in the boardroom. (shrink)

In the corporate social responsibility (CSR) literature, the principle of voluntarism is predominant and implies that responsible business activities are discretionary and reach beyond the rule of law. This principle fails to explain that governments have a great interest in CSR and exercise influence on firms’ CSR activities. Therefore, we argue in favour of a contingency approach on voluntarism in CSR. To this end, we analyse the academic literature to demonstrate how governments are part of the CSR debate. We selected (...) 703 papers where the impact of governments is mentioned from five journals in our field (BEER, BEQ, BSE, BAS, JBE) in the period 1982–2011. We studied the titles and abstracts of these papers and provide an overview of: (i) the geographical orientation of the reviewed studies; (ii) the variety of government levels involved; and (iii) the various subjects where governments appear to be involved. In addition, an in‐depth reading of a subsample of 39 articles offers more details on the role of governments in the CSR literature. Hence, we offer a structured overview on the discussion of CSR and governments while stimulating a contingent understanding of the voluntarism concept in CSR. (shrink)

In this article, we use a sample of Norwegian quoted companies in the period of 2001–2010 to explore whether the gender quota requiring 40 % female directors on corporate boards changes the likelihood of women being appointed to top leadership roles as board chairs or corporate CEOs. Our empirical results indicate that the gender quota and the resulting increased representation of female directors provide a fertile ground for women to take top leadership positions. The presence of female board chairs is (...) positively associated with female directors’ independence status, age and qualification, whilst the presence of female CEOs is positively related to the average qualification of female directors. Firms with older and better educated female directors are more likely to appoint female board chairs. The likelihood of female CEOs’ appointment increases with the percentage of independent directors and directors’ qualifications, especially those for female directors. Furthermore, the gender gaps with respect to qualification, board interlocks and nationality between female and male board chairs vanishes after Norwegian companies’ full compliance to the quota in January 2008. However, the gender quota has no significant impact on the gender gaps between female and male directors after its full compliance. Our article thereby contributes to understanding how gender quotas, presence of female directors, percentage of female directors on boards and other board characteristics can determine the gender of top leaders of organizations. (shrink)

In the corporate social responsibility literature, the principle of voluntarism is predominant and implies that responsible business activities are discretionary and reach beyond the rule of law. This principle fails to explain that governments have a great interest in CSR and exercise influence on firms’ CSR activities. Therefore, we argue in favour of a contingency approach on voluntarism in CSR. To this end, we analyse the academic literature to demonstrate how governments are part of the CSR debate. We selected 703 (...) papers where the impact of governments is mentioned from five journals in our field in the period 1982–2011. We studied the titles and abstracts of these papers and provide an overview of: the geographical orientation of the reviewed studies; the variety of government levels involved; and the various subjects where governments appear to be involved. In addition, an in-depth reading of a subsample of 39 articles offers more details on the role of governments in the CSR literature. Hence, we offer a structured overview on the discussion of CSR and governments while stimulating a contingent understanding of the voluntarism concept in CSR. (shrink)

Scholars have emphasized the potential of self-regulation, realized through ‘codes of good governance’, to improve gender diversity on boards. Yet, unconvinced of the effectiveness of this self-regulation, many regulators have implemented mandatory quota laws. Our study sheds light on this dilemma. Seeking to broaden our conceptual knowledge of how such ‘codes’ work in the specific case of gender diversity on boards, we ask: Under which conditions is self-regulation via voluntary principles of good governance effective? Expanding recent institutional-theory perspectives from the (...) literature of women on boards, we show that, in the case of Austria, self-regulation via code recommendations is ineffective unless supported by additional forces. The primary reason for this, we argue, is that nominators do not expect benefits from gender-diverse boards. Furthermore, non-compliant companies face little pressure to change due to the small number of companies that have already adopted respective code recommendations. We identify two potential alternatives to boost the effectiveness of voluntary self-regulation for gender-diverse boards: First, the introduction of concrete targets for female representation and the public monitoring of fulfillment; and, second, the establishment of a credible threat that mandatory quotas will be imposed if diversity goals are not achieved. Drawing on longitudinal data from 2006 to 2016 on listed and state-owned companies in Austria, we give an empirical account of the conditions that assure effective self-regulation. Arguing that codes suffer from what we call ‘opportunity bias’, we conclude that political goals based on ethical rather than instrumental considerations are unlikely to be effectively implemented solely by codes of good governance. (shrink)

This article examines how well the Kinder, Lydenberg, Domini Research & Analytics ratings measure past corporate social performance and predict future corporate social performance in Diversity and Governance categories. The results show that the KLD ratings effectively measure and predict social performance in both categories. The results also suggest that the KLD ratings may identify differences in the quality of management and firm which can affect future social performance and is not entirely explained by past social performance. The findings of (...) this study lend some support for empirical studies relying on the KLD ratings to operationalize corporate social performance. The findings suggest that users of the ratings need to have a clear understanding of what information they are seeking from the KLD ratings in order to maximize the utility of these ratings. (shrink)

How do a country’s basic institutions enable or hinder women’s rise to the boards of public companies? The study evaluates this question with reference to the five basic institutions that research suggests are common across all countries: family, education, economy, government, and religion. The study draws on a sample, which consists of 23 countries, and the study is framed in neo-institutional theory. In analyzing the role of these institutions, the article seeks to understand better the relationships between specific institutions and (...) the share of board seats held by women. The results suggest that four of the five basic institutions are related to the share of board seats women hold. Family, education, economy, and government influence women’s rise to the board; however, religion does not influence women’s rise to the corporate board of directors. (shrink)

The corporate social responsibility and industrial relations studies have evolved mostly in parallel. In this paper, we integrate the IR with the CSR perspective, highlighting their similarities and differences. In particular, the study adopts a framework which includes a wide set of CSR-related issues to explore what unions and companies negotiate under the umbrella of CSR. It analyses and compares the national sectoral agreements of two key industries in the Italian economy, i.e. Metal and Chemical. We find that these two (...) sectors exhibit differences because the CSR-related issues covered by the two contracts are formally labelled as CSR in the Chemical contract, and not labelled as CSR in the Metal contract. We also find similarities regarding the CSR-related issues covered and not covered by the national contracts, and the binding processes centrally negotiated for their implementation. We interpret the similarities in light of the specificities of the Italian IR system, and the differences in light of the negotiation traditions of the two sectors under study, which induce the actors in the Metal sector to focus more on what differentiates the CSR and IR perspectives, and the actors in the Chemical sector to focus more on what the CSR and IR perspectives share. (shrink)