IDEAS home Printed from https://ideas.repec.org/a/kap/jbuset/v129y2015i2p429-444.html
   My bibliography  Save this article

Appointing Women to Boards: Is There a Cultural Bias?

Author

Listed:
  • Amalia Carrasco
  • Claude Francoeur
  • Réal Labelle
  • Joaquina Laffarga
  • Emiliano Ruiz-Barbadillo

Abstract

Companies that are serious about corporate governance and business ethics are turning their attention to gender diversity at the most senior levels of business (Institute of Business Ethics, Business Ethics Briefing 21:1, 2011 ). Board gender diversity has been the subject of several studies carried out by international organizations such as Catalyst (Increasing gender diversity on boards: Current index of formal approaches, 2012 ), the World Economic Forum (Hausmann et al., The global gender gap report, 2010 ), and the European Board Diversity Analysis (Is it getting easier to find women on European boards? 2010 ). They all lead to reports confirming the overall relatively low proportion of women on boards and the slow pace at which more women are being appointed. Furthermore, the proportion of women on corporate boards varies much across countries. Based on institutional theory, this study hypothesizes and tests whether this variation can be attributed to differences in cultural settings across countries. Our analysis of the representation of women on boards for 32 countries during 2010 reveals that two cultural characteristics are indeed associated with the observed differences. We use the cultural dimensions proposed by Hofstede (Culture’s consequences: International differences in work-related values, 1980 ) to measure this construct. Results show that countries which have the greatest tolerance for inequalities in the distribution of power and those that tend to value the role of men generally exhibit lower representations of women on boards. Copyright Springer Science+Business Media Dordrecht 2015

Suggested Citation

  • Amalia Carrasco & Claude Francoeur & Réal Labelle & Joaquina Laffarga & Emiliano Ruiz-Barbadillo, 2015. "Appointing Women to Boards: Is There a Cultural Bias?," Journal of Business Ethics, Springer, vol. 129(2), pages 429-444, June.
  • Handle: RePEc:kap:jbuset:v:129:y:2015:i:2:p:429-444
    DOI: 10.1007/s10551-014-2166-z
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1007/s10551-014-2166-z
    Download Restriction: Access to full text is restricted to subscribers.

    File URL: https://libkey.io/10.1007/s10551-014-2166-z?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Stulz, Rene M. & Williamson, Rohan, 2003. "Culture, openness, and finance," Journal of Financial Economics, Elsevier, vol. 70(3), pages 313-349, December.
    2. Réal Labelle & Rim Gargouri & Claude Francoeur, 2010. "Erratum to: Ethics, Diversity Management, and Financial Reporting Quality," Journal of Business Ethics, Springer, vol. 93(2), pages 355-355, May.
    3. Donald C. Hambrick & Albert A. Cannella, 2004. "CEOs who have COOs: contingency analysis of an unexplored structural form," Strategic Management Journal, Wiley Blackwell, vol. 25(10), pages 959-979, October.
    4. Mike W. Peng, 2004. "Outside directors and firm performance during institutional transitions," Strategic Management Journal, Wiley Blackwell, vol. 25(5), pages 453-471, May.
    5. Marianne Bertrand & Kevin F. Hallock, 2001. "The Gender Gap in Top Corporate Jobs," ILR Review, Cornell University, ILR School, vol. 55(1), pages 3-21, October.
    6. Luigi Guiso & Paola Sapienza & Luigi Zingales, 2006. "Does Culture Affect Economic Outcomes?," Journal of Economic Perspectives, American Economic Association, vol. 20(2), pages 23-48, Spring.
    7. Torben Pedersen & Steen Thomsen, 1997. "European Patterns of Corporate Ownership: A Twelve-Country Study," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 28(4), pages 759-778, December.
    8. David A. Carter & Betty J. Simkins & W. Gary Simpson, 2003. "Corporate Governance, Board Diversity, and Firm Value," The Financial Review, Eastern Finance Association, vol. 38(1), pages 33-53, February.
    9. Siri Terjesen & Val Singh, 2008. "Female Presence on Corporate Boards: A Multi-Country Study of Environmental Context," Journal of Business Ethics, Springer, vol. 83(1), pages 55-63, November.
    10. Ole‐Kristian Hope, 2003. "Disclosure Practices, Enforcement of Accounting Standards, and Analysts' Forecast Accuracy: An International Study," Journal of Accounting Research, Wiley Blackwell, vol. 41(2), pages 235-272, May.
    11. Jiatao Li & J. Richard Harrison, 2008. "National Culture and the Composition and Leadership Structure of Boards of Directors," Corporate Governance: An International Review, Wiley Blackwell, vol. 16(5), pages 375-385, September.
    12. Billing, Yvonne Due & Alvesson, Mats, 1989. "Four ways of looking at women and leadership," Scandinavian Journal of Management, Elsevier, vol. 5(1), pages 63-80.
    13. Semenov, R., 2000. "Cross-country differences in economic governance : Culture as a major explanatory factor," Other publications TiSEM 2e8b65dd-972a-4342-8580-4, Tilburg University, School of Economics and Management.
    14. Deborah Dahlen Zelechowski & Diana Bilimoria, 2004. "Characteristics of Women and Men Corporate Inside Directors in the US," Corporate Governance: An International Review, Wiley Blackwell, vol. 12(3), pages 337-342, July.
    15. Réal Labelle & Rim Makni Gargouri & Claude Francoeur, 2010. "Ethics, Diversity Management, and Financial Reporting Quality," Journal of Business Ethics, Springer, vol. 93(2), pages 335-353, May.
    16. Randall S Schuler & Nikolai Rogovsky, 1998. "Understanding Compensation Practice Variations Across Firms: The Impact of National Culture," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 29(1), pages 159-177, March.
    17. Stephen B Salter & Frederick Niswander, 1995. "Cultural Influence on the Development of Accounting Systems Internationally: A Test of Gray's [1988] Theory," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 26(2), pages 379-397, June.
    18. David A Ralston & David J Gustafson & Fanny M Cheung & Robert H Terpstra, 1993. "Differences in Managerial Values: A Study of U.S., Hong Kong and PRC Managers," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 24(2), pages 249-275, June.
    19. Niclas L. Erhardt & James D. Werbel & Charles B. Shrader, 2003. "Board of Director Diversity and Firm Financial Performance," Corporate Governance: An International Review, Wiley Blackwell, vol. 11(2), pages 102-111, April.
    20. Wm. Gerard Sanders & Steven Boivie, 2004. "Sorting things out: valuation of new firms in uncertain markets," Strategic Management Journal, Wiley Blackwell, vol. 25(2), pages 167-186, February.
    21. Philippe Very & Michael Lubatkin & Roland Calori & John Veiga, 1997. "Relative standing and the performance of recently acquired European firms," Strategic Management Journal, Wiley Blackwell, vol. 18(8), pages 593-614, September.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Amélia Carrasco & Claude Francoeur & Isabelle Réal & Joaquina Laffarga & Emiliano Ruiz-Barbadillo, 2012. "Cultural differences and board gender diversity," Post-Print hal-00937923, HAL.
    2. Liu, Haiming & Liang, Quanxi & Ling, Leng, 2022. "Underrepresentation of female CEOs in China: The role of culture, market forces, and foreign experience of directors," Research in International Business and Finance, Elsevier, vol. 63(C).
    3. 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, vol. 118(2), pages 227-249, December.
    4. Ji, Jiao & Peng, Hongfeng & Sun, Hanwen & Xu, Haofeng, 2021. "Board tenure diversity, culture and firm risk: Cross-country evidence," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 70(C).
    5. Nguyen, Tuan & Nguyen, An & Nguyen, Mau & Truong, Thuyen, 2021. "Is national governance quality a key moderator of the boardroom gender diversity–firm performance relationship? International evidence from a multi-hierarchical analysis," International Review of Economics & Finance, Elsevier, vol. 73(C), pages 370-390.
    6. Helena Isidro & Márcia Sobral, 2015. "The Effects of Women on Corporate Boards on Firm Value, Financial Performance, and Ethical and Social Compliance," Journal of Business Ethics, Springer, vol. 132(1), pages 1-19, November.
    7. Boubakri, Narjess & Saffar, Walid, 2016. "Culture and externally financed firm growth," Journal of Corporate Finance, Elsevier, vol. 41(C), pages 502-520.
    8. Gull, Ammar Ali & Nekhili, Mehdi & Nagati, Haithem & Chtioui, Tawhid, 2018. "Beyond gender diversity: How specific attributes of female directors affect earnings management," The British Accounting Review, Elsevier, vol. 50(3), pages 255-274.
    9. Laura Cabeza-García & Esther B. Brío & Carlos Rueda, 2021. "The moderating effect of innovation on the gender and performance relationship in the outset of the gender revolution," Review of Managerial Science, Springer, vol. 15(3), pages 755-778, April.
    10. Aila Virtanen, 2012. "Women on the boards of listed companies: Evidence from Finland," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 16(4), pages 571-593, November.
    11. Evans Gary L., 2018. "Bold vision: Gender diversity stuck in transition," Economics and Business Review, Sciendo, vol. 4(4), pages 97-114, November.
    12. Chwee Ming Tee & Puspavathy Rassiah, 2020. "Ethnic board diversity, earnings quality and institutional investors: evidence from Malaysian corporate boards," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 60(4), pages 4257-4290, December.
    13. Duong, Lien & Evans, John, 2016. "Gender differences in compensation and earnings management: Evidence from Australian CFOs," Pacific-Basin Finance Journal, Elsevier, vol. 40(PA), pages 17-35.
    14. Rey Dang & Anne Françoise Bender & Marie José Scotto, 2014. "Women on French Corporate Board of Directors: How Do They Differ from their Male Counterparts?," Working Papers 2014-54, Department of Research, Ipag Business School.
    15. Irene Wei Kiong Ting & Wei-Kang Wang & Wen-Min Lu & Yun-Jung Chen, 2021. "Do female directors will have impact on corporate performance?," Review of Managerial Science, Springer, vol. 15(3), pages 611-631, April.
    16. Ferris, Stephen P. & Jayaraman, Narayanan & Liao, Min-Yu (Stella), 2020. "Better directors or distracted directors? An international analysis of busy boards," Global Finance Journal, Elsevier, vol. 44(C).
    17. Simona, Comi & Mara, Grasseni & Federica, Origo & Laura, Pagani, 2017. "Where Women Make The Difference. The Effects of Corporate Board Gender Quotas on Firms’ Performance across Europe," Working Papers 367, University of Milano-Bicocca, Department of Economics, revised 12 Jul 2017.
    18. Bowo Setiyono & Amine Tarazi, 2018. "Does Diversity of Bank Board Members Affect Performance and Risk? Evidence from an Emerging Market," CSR, Sustainability, Ethics & Governance, in: Belén Díaz Díaz & Samuel O. Idowu & Philip Molyneux (ed.), Corporate Governance in Banking and Investor Protection, chapter 0, pages 185-218, Springer.
    19. Shuo Han & Weijun Cui & Jin Chen & Yu Fu, 2019. "Why Do Companies Choose Female CEOs?," Sustainability, MDPI, vol. 11(15), pages 1-36, July.
    20. Xiu, Zongfeng & Liu, Ran & Yin, Jingwei, 2022. "Confucian merchants culture, social movement and entrepreneurs’ political participation: evidence from China," International Review of Economics & Finance, Elsevier, vol. 80(C), pages 795-821.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:kap:jbuset:v:129:y:2015:i:2:p:429-444. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.