We examine the issue of entrepreneurial gender bias by focusing on the underlying mechanisms that impact the likelihood of receiving external venture-capital financing. We claim that gender bias negatively affects socially attributed dimensions (such as the stigma ascribed to entrepreneurs who have previously suffered a failure), while it has no effect on objective dimensions (such as the experience gained by entrepreneurs). Our results, based on 2088 US firms, show that female entrepreneurs are less likely to attract external funds if they (...) have previously encountered failure. This negative effect becomes less impactful when novel or serial successful entrepreneurs are considered. Consequently, novel or serial successful entrepreneurs are expected to suffer less from gender bias if compared to peers who experienced a failure during their entrepreneurial career. (shrink)

Prior research on the impact of mandatory quotas in one dimension of diversity, on other dimensions, shows contradictory results. We seek to resolve this puzzle by relying on theory in social psychology on homophily and recategorization processes in hiring. In the context of a law mandating a gender quota on Indian boards, we predict and find that boards respond to the law by hiring new women directors who are similar to existing directors in terms of caste and community dimensions. We (...) find that this homophily effect is impactful to the extent that even high-status women directors cannot overcome it. At the aggregate level, these organizational-level practices result in caste and community inequalities remaining intact despite the introduction of 1309 new women directors. We contribute to research on inequality, board of directors, and affirmative action. (shrink)

The underrepresentation of females on corporate boards is an important ethical issue that raises serious concerns about gender equality in senior management teams. Relying on a large sample of public firms from the Chinese market, we examine how social trust affects female board representation. We find that female board representation has a positive and significant relation with social trust. The effect is more pronounced in regions with a higher male-to-female sex ratio at birth, lower levels of education, lower GDP per (...) capita, and in nonfamily firms. We also find that higher social trust is more likely to increase the number of non-independent female directors rather than independent ones. Further analyses show that increased female board representation is an important channel through which social trust improves corporate ESG ratings. Overall, our study suggests that social trust contributes positively to gender diversity in corporate management. (shrink)

In the study of women in academia, the focus is often particularly on women’s stark underrepresentation in the math-intensive fields of natural sciences, technology, and economics. In the non-math-intensive of fields life, social and behavioral sciences, gender issues are seemingly less at stake because, on average, women are well-represented. However, in the current study, we demonstrate that equal gender representation in LSB disciplines does not guarantee women’s equal opportunity to advance to full professorship—to the contrary. With a cross-sectional survey among (...) N = 2,109 academics at mid-level careers in the Netherlands, we test the hypothesis that in LSB, female academics perceive to hit a “thicker” glass ceiling—that is, they see a sharper contrast between the high representation of women at the lower compared to the top levels. We test whether this predicts female academics’ lower estimated chances to reach full professorship relative to men in LSB. We introduce a novel perceived glass ceiling index, calculated based on academics’ perceptions of the share of women and men in their direct work environment minus their perceptions of gender ratio among full professors in their field. Results confirm that the perceived glass ceiling is thicker in the non-math-intensive LSB compared to math-intensive NTE fields. Furthermore, only in LSB, women perceived a thicker glass ceiling than men. Moreover, only among female academics, the thicker the perceived glass ceiling, the lower their estimated chances to become full professor 1 day. Combined, a moderated mediation showed that for women only, a thicker perceived glass ceiling in LSB compared to NTE disciplines predicted their lower estimated chances to advance to full professor level. No such mediation occurred for men. We conclude that women’s higher numerical representation in LSB disciplines does not negate a male-dominant normative standard about academic leadership and success. Paradoxically, the perceived odds for female academics to reach the top of their field are lower in fields where they are relatively highly represented, and this may pose unique barriers to women’s perceived opportunities for career success. (shrink)

While substantial evidence is emerging internationally 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 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 may promote more effective cultural and practical change in support of greater representation of women in leadership. (shrink)

Women are underrepresented in the upper echelons of management in most countries. Despite the effectiveness of identity conscious initiatives for increasing the proportion of women, many organizations have been reluctant to implement such initiatives because potential employees may perceive them negatively. Given the increasing competition for labor, attracting talent is relevant for the long-term success of organizations. In this study, we used an experimental design to examine the effects of identity blind and identity conscious gender diversity initiatives on people’s pursuit (...) intentions toward organizations using them. We used counterfactual thinking, derived from fairness theory, as a guiding framework for our hypothesis development and investigated the moderating influence of a forthcoming government-mandated gender quota as well as individual characteristics. Participants reviewed statements regarding workplace diversity initiatives and rated either the initiatives’ effectiveness or indicated their intentions to pursue employment with organizations using them. Of those rating pursuit intentions, half were informed that the country in which they were conducting their job search was about to implement gender quotas. Results indicated a diversity management paradox such that initiatives perceived as more effective made organizations using them less attractive as employers. However, these negative perceptions were mitigated by a government-mandated quota, and also lower among women. Implications for the study and practice of diversity are discussed. (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)

Understanding the spread of national public policies to increase the percentage of women on boards is often presented using different types of institutional theory logic. However, the importance of the political games influencing these decisions has not received the same attention. In this article, we look beyond the institutional setting by focusing on the role of actors. We explore processes that include who the critical actors that drive and determine these policies are, and what motivates them to push for change. (...) We employ a processual design approach using a longitudinal country-comparative case study exploring the case of Norway, England, Germany and Italy. We map the political games, both inside and outside legislative areas, including the micro-politics among various actors and groups of actors in the selected countries. Data are collected through participation observations, interviews and text analyses. The study contributes by filling important gaps in the literature by embedding the discussion about women on boards in politicking and national public policies and by introducing dynamic perspectives. Finally, by using a processual design approach, we capture the reality of the women on board debates at different points of time and in different actor and motivational contexts. The study has consequences for how policy-makers and businesses may follow up and act, based on the debates. (shrink)

This article examines whether progress in women’s access to decision-making positions is best achieved through increased levels of development or targeted actions. Drawing on European data for the period 2006–2018, the article examines the association between how gender equal a country is and legislated measures such as board quotas with women’s representation on boards. The analysis then explores how this can be nuanced by differentiating between hard sanctions, soft sanctions and codes of governance. It shows that board quotas cannot be (...) relied upon as instruments of progress independently of a contextual environment that is more gender equal. Furthermore, board quotas with hard sanctions work best, followed by codes of governance, particularly when associated with higher gender equality. However, board quotas with soft sanctions are associated with results that are only marginally better than not having any measure in place. The article concludes that for further and faster progress to be made, introducing legislated board quotas shows great potential, though only in combination with striving for a gender equal society and using hard sanctions. The results call for organizations not to lose focus on ‘rights’ at the expense of the more palatable ‘business case’ for board quotas when striving for equality on corporate boards. (shrink)

We evaluate the relationship between the appointment of women to CEO or Chair positions and firm performance, and shed light on the differences between family and nonfamily firms. By using a propensity score matching approach on a sample of 394 French firms over the period 2001–2010, we find major discordances between women’s leadership style and family business expectations relative to firm performance, as measured by return on assets and Tobin’s q. Notably, our results support the conjecture that family firms, which (...) are more conducive to transformational leadership, offer women a more appropriate climate for exercising the function of Chair than that of CEO. In contrast, women CEOs perform better in nonfamily firms. Our findings move away from the predominant focus on barriers and stereotypes images about the female leadership and support the contingency theory of leadership, which states that the effectiveness of a leadership style depends on the organization and culture in which leaders operate, and on task-related positions. (shrink)