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Gender Diversity on European Banks’ Boards of Directors

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  • Ruth Mateos de Cabo

    ()

  • Ricardo Gimeno

    ()

  • María Nieto

    ()

Abstract

This article investigates the gender diversity of the corporate board of European Union banks. Employing a large sample of 612 European banks from 20 European countries, it identifies organizational characteristics that could be predictive of women’s presence on bank boards. We identify three factors that play a particularly important role in defining bank board gender diversity. First, the proportion of women on the board is higher for lower-risk banks. We argue that there may be some statistical discrimination behind this relation, although it could also be explained by a real risk-aversion hypothesis. Second, banks with larger boards have a higher proportion of women on their boards, which could be considered a signal of some kind of preference for homogeneity on small boards. Finally, banks that have a growth orientation are more prone to include women on their board, since they may be seen as providers of diverse external resources that are more valued by firms operating under critical circumstances. Copyright Springer Science+Business Media B.V. 2012

Suggested Citation

  • Ruth Mateos de Cabo & Ricardo Gimeno & María Nieto, 2012. "Gender Diversity on European Banks’ Boards of Directors," Journal of Business Ethics, Springer, vol. 109(2), pages 145-162, August.
  • Handle: RePEc:kap:jbuset:v:109:y:2012:i:2:p:145-162 DOI: 10.1007/s10551-011-1112-6
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    Cited by:

    1. Simon Ho & Annie Li & Kinsun Tam & Feida Zhang, 2015. "CEO Gender, Ethical Leadership, and Accounting Conservatism," Journal of Business Ethics, Springer, pages 351-370.
    2. Padma Rao Sahib, 2015. "Status, Peer Influence, and Racio-ethnic Diversity in Times of Institutional Change: An Examination from European Labour Law," Journal of Business Ethics, Springer, pages 205-218.
    3. Farag, Hisham & Mallin, Chris, 2017. "Board diversity and financial fragility: Evidence from European banks," International Review of Financial Analysis, Elsevier, vol. 49(C), pages 98-112.
    4. Donato Masciandaro & Paola Profeta & Davide Romelli, 2016. "Gender and Monetary Policymaking: Trends and Drivers," BAFFI CAREFIN Working Papers 1512, BAFFI CAREFIN, Centre for Applied Research on International Markets Banking Finance and Regulation, Universita' Bocconi, Milano, Italy.
    5. Joanna Tyrowicz & Jakub Mazurek, 2017. "All on board? New evidence on board gender diversity from a large panel of firms," GRAPE Working Papers 5, GRAPE Group for Research in Applied Economics.
    6. repec:spr:rvmgts:v:11:y:2017:i:4:d:10.1007_s11846-016-0202-3 is not listed on IDEAS
    7. Mehdi Nekhili & Hayette Gatfaoui, 2013. "Are Demographic Attributes and Firm Characteristics Drivers of Gender Diversity? Investigating Women’s Positions on French Boards of Directors," Journal of Business Ethics, Springer, pages 227-249.
    8. repec:eee:ecosys:v:41:y:2017:i:1:p:109-121 is not listed on IDEAS
    9. Xingqiang Du, 2016. "Does Confucianism Reduce Board Gender Diversity? Firm-Level Evidence from China," Journal of Business Ethics, Springer, pages 399-436.
    10. Shkendije Himaj, 2014. "Corporate Governance in Banks and its Impact on Risk and Performance: Review of Literature on the Selected Governance Mechanisms," Journal of Central Banking Theory and Practice, Central bank of Montenegro, vol. 3(3), pages 53-85.
    11. Hisham Farag & Chris Mallin, 2016. "The Impact of the Dual Board Structure and Board Diversity: Evidence from Chinese Initial Public Offerings (IPOs)," Journal of Business Ethics, Springer, pages 333-349.
    12. Mehdi Nekhili & Hayette Gatfaoui, 2013. "Are Demographic Attributes and Firm Characteristics Drivers of Gender Diversity? Investigating Women’s Positions on French Boards of Directors," Journal of Business Ethics, Springer, pages 227-249.
    13. Owen, Ann L. & Temesvary, Judit, 2017. "The performance effects of gender diversity on bank boards," MPRA Paper 80078, University Library of Munich, Germany.
    14. Emma García-Meca, 2016. "Political connections, gender diversity and compensation policy," Review of Managerial Science, Springer, pages 553-576.
    15. Francesca Arnaboldi & Barbara Casu, 2012. "Corporate Governance in European Banking," Chapters,in: Research Handbook on International Banking and Governance, chapter 31 Edward Elgar Publishing.
    16. Baixauli-Soler, J. Samuel & Belda-Ruiz, Maria & Sanchez-Marin, Gregorio, 2015. "Executive stock options, gender diversity in the top management team, and firm risk taking," Journal of Business Research, Elsevier, vol. 68(2), pages 451-463.
    17. Magda Bianco & Angela Ciavarella & Rossella Signoretti, 2013. "Women on corporate boards in Italy," Questioni di Economia e Finanza (Occasional Papers) 174, Bank of Italy, Economic Research and International Relations Area.
    18. Maria Lucas-Pérez & Antonio Mínguez-Vera & Juan Baixauli-Soler & Juan Martín-Ugedo & Gregorio Sánchez-Marín, 2015. "Women on the Board and Managers’ Pay: Evidence from Spain," Journal of Business Ethics, Springer, pages 265-280.
    19. Saeed, Abubakr & Belghitar, Yacine & Yousaf, Amna, 2016. "Firm-level determinants of gender diversity in the boardrooms: Evidence from some emerging markets," International Business Review, Elsevier, vol. 25(5), pages 1076-1088.
    20. Dan CHIRLESAN & Marius Constantin APOSTOAIE, 2012. "Corporate Governance within Financial Institutions: Asset or Liability?," Economics and Applied Informatics, "Dunarea de Jos" University of Galati, Faculty of Economics and Business Administration, issue 1, pages 45-52.
    21. Tran Thi Thanh Tu & Hoang Huu Loi & Tran Thi Hoang Yen, 2015. "Relationship between Gender Diversity on Boards and Firm¡¯s Performance - Case Study about ASEAN Banking Sector," International Journal of Financial Research, International Journal of Financial Research, Sciedu Press, vol. 6(2), pages 150-159, April.
    22. repec:kap:jbuset:v:147:y:2018:i:2:d:10.1007_s10551-015-2974-9 is not listed on IDEAS

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