European board structure and director expertise: The impact of quotas

Lending, Claire; Vähämaa, Emilia

doi:10.1016/j.ribaf.2016.09.004

Cited by 19 publications

(12 citation statements)

References 38 publications

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“…independence (Lending and Vähämaa, 2017). So, the increasing level of board independence can be seen both as evidence of the impact of governance rules and a consequence of more womenoriented boards (Terjesen et al, 2016) 4 The increasing level of gender diversity in the boardroom can also be interpreted as a gradual diffusion of the stakeholder perspective in corporate governance and finance.…”

Section: Discussionmentioning

confidence: 99%

Board gender diversity and the cost of equity: What difference does gender quota legislation make?

2023

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This study examines the relationship between women directors and the cost of equity (COE). Investigating the French firm's sample, we find a significant negative effect of women directors on the COE. Our results also document that the effect of women directors on reducing the COE is significant for firms that have a critical mass of at least four women directors. Using the difference‐in‐difference (DID) and propensity score matching (PSM) approach, we find that the relationship between female directors and lower equity costs is significant for the period following the Copé–Zimmermann gender quota law. The results show that women directors' presence on corporate boards is also supported by economic reasons. The study provides implications in relation to the Copé–Zimmermann law in France.

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Section: Discussionmentioning

confidence: 99%

Board gender diversity and the cost of equity: What difference does gender quota legislation make?

2023

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“…There are three main controversial topics of discussion surrounding the debate on the legitimacy of quotas: 1) the justice of quota implementation (Brandth & Bjørkhaug 2015;Hall & Woermann, 2014;Lansing & Chandra, 2012;Terjesen & Sealy, 2016); 2) the compromise of meritocracy by quotas (Dale-Olsen et al, 2013;Kakabadse et al, 2015;Koch, 2015;Lansing & Chandra, 2012;Lending & Vähämaa, 2017;Terjesen & Sealy, 2016); 3) and the implementation of work-life balance policies (Holst & Wrohlich, 2017;Koch, 2015;Lansing & Chandra, 2012;Sandberg, 2013;Wiersema & Mors, 2016).…”

Section: Quotas: Controversies and Dilemmasmentioning

confidence: 99%

“…Matters of fairness do not only derive from a selection process based on demographics but also include doubts around meritocracy (Kakabadse et al, 2015). Gender quotas may compromise selection processes based on qualifications, leading to gender bias and to the unnatural selection of qualified candidates from the underrepresented gender (Lending & Vähämaa, 2017). Some authors also warn of the risk of tokenism, reverse-discrimination, cases of nepotism and opposition to quotas among existing women directors, who may then feel stigmatized (Dale-Olsen et al, 2013;Koch, 2015;Lansing & Chandra, 2012).…”

Section: Quotas: Controversies and Dilemmasmentioning

confidence: 99%

Gender Diversity and Equality in the Boardroom: Impacts of Gender Quota Implementation in Portugal

Sousa¹,

Santos²

2022

Corporate Social Responsibility in Management and Engineering

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Given the importance of gender equality to international economics and sustainable economic and social development, this dissertation addresses the gender imbalances in senior company board decision-making positions. This furthermore aims to identify the potential impacts of the 33.3% gender quota for supervisory and management boards approved in Portugal in August 2017. Consequently, this enables a deeper understanding of the conditions necessary for gender quotas to bring about sustainable gender balances in boardrooms and alongside changes in the corporate culture. This dissertation applies interpretative data analysis from the European Institute for Gender Equality (EIGE) and semi-structured interviews with representatives of nine PSI 20 firms (the 20 largest companies listed on the Portuguese Stock Exchange). The goals are thus to study the glass-ceiling existence and constraints within the Portuguese corporate context, perceptions on quota outcomes and legitimacy, and the perceived impacts of women on firm performances.The results of this study demonstrate how quota acceptability is independent of gender as there were no verified gender patterns among the responses obtained; that cultural factors and gender role expectations influence board dynamics and facilitate male access to board positions; and, the Portuguese quota requirement may successfully trigger gender parity in the boardroom due to the existence of a sanctioning mechanism for noncompliance and a strong record of path dependency (earlier legal initiatives). However, findings are inconclusive as regards any possible structural change in corporate mentality and culture as respondents remain divided about the influence of gender diversity on firm performance, the legitimacy of quotas and their effects on meritocracy.

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“…Understanding how a board of directors actually functions and how boards may contribute to financial outcomes has generated major research interest for some time now, and the corporate governance literature has highlighted the key role played by board effectiveness in firms' success. In particular, board diversity has gained significant attention from researchers, investors and policymakers (Mensi-Klarbach, 2014;Lending and Vähämaa, 2017) and has become a priority in most countries with regard to improving the governance of firms. As a result, there is an ongoing debate concerning whether board diversity actually leads to value creation (Kılıç and Kuzey, 2016;Gordini and Rancati, 2017).…”

Section: Introductionmentioning

confidence: 99%

The impact of board diversity and voluntary risk disclosure on financial outcomes. A case for the manufacturing industry

Alvarado

Urquiza

2020

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Purpose The purpose of this paper is to analyse how board diversity affects firm financial outcomes through the way in which this diversity helps to improve voluntary disclosures. Design/methodology/approach The partial least squares (PLS) technique is used, and a sample of the manufacturing firms listed in Standard and Poor’s 500 for 2009 is studied. In relation to board diversity, two specific characteristics are considered, namely, gender diversity and ethnic diversity. Content analysis techniques are used to measure risk disclosures. Findings The results show that there is a positive association between board diversity and firms’ financial outcomes, which is explained by disclosing risk information. Research limitations/implications The results indicate that the effect of boards of directors on firm outcoumes is influenced by the board involvement in specific strategies, thereby providing encouraging opportunities for future research. Practical implications These findings have implications both for companies, when selecting board members, and for policymakers, when establishing requirements concerning board composition. Moreover, the evidence highlights the role of disseminating risk information, which has direct implications for managers and regulators, who may better understand the value-relevance of risk disclosures. Originality/value The use of PLS technique is one of the novelties of this paper. The novelty of this approach provides fresh insights into the literature, highlighting that the effect of boards on firm outcomes may be mediated by director involvement in specific disclosure strategies.

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European board structure and director expertise: The impact of quotas

Cited by 19 publications

References 38 publications

Board gender diversity and the cost of equity: What difference does gender quota legislation make?

Board gender diversity and the cost of equity: What difference does gender quota legislation make?

Gender Diversity and Equality in the Boardroom: Impacts of Gender Quota Implementation in Portugal

The impact of board diversity and voluntary risk disclosure on financial outcomes. A case for the manufacturing industry

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