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Board gender diversity, CEO power and LGBTQ-supportive corporate policies

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  • Brahma, Sanjukta
  • Boateng, Agyenim

Abstract

This study investigates the effect of two key corporate governance mechanisms, board gender diversity, chief executive officer (CEO) power, and their interactions on firms’ implementation of lesbian, gay, bisexual, transgender, and queer (LGBTQ)-supportive policies. Using 348 Fortune 500 firms from 2003–2023, our study reveals that the presence of three or more female directors on the board is positively associated with LGBTQ-supportive policies. We also find that CEO formal (informal) power has a positive (negative) impact on LGBTQ-supportive policies. Lastly, we document that whereas the effects of the interactions of CEO formal power with both the gender diversity measures are positive, the interactions between CEO informal power and gender diversity measures: critical mass and token are positive and negative respectively. Overall, the results suggest that CEO power could act as a double-edged sword, and a high female director representation reduces the negative effect of CEO informal power on LGBTQ-supportive policy implementations.

Suggested Citation

  • Brahma, Sanjukta & Boateng, Agyenim, 2025. "Board gender diversity, CEO power and LGBTQ-supportive corporate policies," Research in International Business and Finance, Elsevier, vol. 74(C).
    • Handle: RePEc:eee:riibaf:v:74:y:2025:i:c:s0275531924004574
    DOI: 10.1016/j.ribaf.2024.102664
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    More about this item

    Keywords

    LGBTQ-supportive; Board gender diversity; CEO power; Leadership; Top management;
    All these keywords.

    JEL classification:

    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance
    • J10 - Labor and Demographic Economics - - Demographic Economics - - - General
    • M14 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Corporate Culture; Diversity; Social Responsibility

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