IDEAS home Printed from https://ideas.repec.org/a/kap/jmgtgv/v26y2022i3d10.1007_s10997-020-09562-6.html
   My bibliography  Save this article

The impact of gender quotas on corporate boards: a cross-country comparative study

Author

Listed:
  • Guclu Atinc

    (Texas A&M University – Commerce)

  • Saurabh Srivastava

    (Texas A&M University – Commerce)

  • Sonia Taneja

    (Texas A&M University – Commerce)

Abstract

Drawing on institutional theory and resource dependence theory, this study examines whether mandating gender quotas for corporate boards is associated with a greater presence of women on boards, better accounting-based and market-based performance, more innovativeness, and more external female directors. Based on a cross-country comparative sample of companies from 18 countries, our results suggest that organizations in countries where gender quotas are implemented show better market-based performance and better board vigilance through a higher number of external directors than organizations in countries where quotas are not implemented. The direct impact of gender quotas on innovativeness and accounting performance is not observed. Our findings add to the institutional theory literature by suggesting that companies respond strategically and show acquiescence in their strategic response when institutional pressure addresses ethical concerns (gender diversity). The results support institutional theory’s contentions that companies from countries mandating gender quotas are valued more highly by the market. Nevertheless, the impacts on accounting performance and innovativeness are not apparent. Additionally, adopting a resource dependence approach, we find that the presence of women on boards is associated with more efficient corporate governance practices. The results of this study demonstrate the positive implications of gender quotas for company boards. The upper echelons of companies and country policymakers may better understand the importance of diversity and the presence of female directors on company boards.

Suggested Citation

  • Guclu Atinc & Saurabh Srivastava & Sonia Taneja, 2022. "The impact of gender quotas on corporate boards: a cross-country comparative study," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 26(3), pages 685-706, September.
    • Handle: RePEc:kap:jmgtgv:v:26:y:2022:i:3:d:10.1007_s10997-020-09562-6
    DOI: 10.1007/s10997-020-09562-6
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s10997-020-09562-6
    File Function: Abstract
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1007/s10997-020-09562-6?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. Guoli Chen & Craig Crossland & Sterling Huang, 2016. "Female board representation and corporate acquisition intensity," Strategic Management Journal, Wiley Blackwell, vol. 37(2), pages 303-313, February.
    2. Chris Bart & Gregory McQueen, 2013. "Why women make better directors," International Journal of Business Governance and Ethics, Inderscience Enterprises Ltd, vol. 8(1), pages 93-99.
    3. Tatli, Ahu & Vassilopoulou, Joana & Özbilgin, Mustafa, 2013. "An unrequited affinity between talent shortages and untapped female potential: The relevance of gender quotas for talent management in high growth potential economies of the Asia Pacific region," International Business Review, Elsevier, vol. 22(3), pages 539-553.
    4. Beate Elstad & Gro Ladegard, 2012. "Women on corporate boards: key influencers or tokens?," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 16(4), pages 595-615, November.
    5. 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.
    6. Kevin Campbell & Antonio Mínguez-Vera, 2008. "Gender Diversity in the Boardroom and Firm Financial Performance," Journal of Business Ethics, Springer, vol. 83(3), pages 435-451, December.
    7. Marianne Bertrand & Sandra E Black & Sissel Jensen & Adriana Lleras-Muney, 2019. "Breaking the Glass Ceiling? The Effect of Board Quotas on Female Labour Market Outcomes in Norway," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 86(1), pages 191-239.
    8. Cathrine Seierstad & Gill Kirton, 2015. "Having It All? Women in High Commitment Careers and Work–Life Balance in Norway," Gender, Work and Organization, Wiley Blackwell, vol. 22(4), pages 390-404, July.
    9. Shamsul N. Abdullah & Ku Nor Izah Ku Ismail & Lilac Nachum, 2016. "Does having women on boards create value? The impact of societal perceptions and corporate governance in emerging markets," Strategic Management Journal, Wiley Blackwell, vol. 37(3), pages 466-476, March.
    10. Aggarwal, Raj & Jindal, Varun & Seth, Rama, 2019. "Board diversity and firm performance: The role of business group affiliation," International Business Review, Elsevier, vol. 28(6), pages 1-1.
    11. Chen, Jie & Leung, Woon Sau & Song, Wei & Goergen, Marc, 2019. "Why female board representation matters: The role of female directors in reducing male CEO overconfidence," Journal of Empirical Finance, Elsevier, vol. 53(C), pages 70-90.
    12. Kevin Campbell & Antonio Minguez Vera, 2010. "Female board appointments and firm valuation: short and long-term effects," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 14(1), pages 37-59, February.
    13. Catherine M. Daily & S. Trevis Certo & Dan R. Dalton, 1999. "A decade of corporate women: some progress in the boardroom, none in the executive suite," Strategic Management Journal, Wiley Blackwell, vol. 20(1), pages 93-100, January.
    14. Jyoti Mahadeo & Teerooven Soobaroyen & Vanisha Hanuman, 2012. "Board Composition and Financial Performance: Uncovering the Effects of Diversity in an Emerging Economy," Journal of Business Ethics, Springer, vol. 105(3), pages 375-388, February.
    15. Stephen Bear & Noushi Rahman & Corinne Post, 2010. "The Impact of Board Diversity and Gender Composition on Corporate Social Responsibility and Firm Reputation," Journal of Business Ethics, Springer, vol. 97(2), pages 207-221, December.
    16. Maretno Harjoto & Indrarini Laksmana & Robert Lee, 2015. "Board Diversity and Corporate Social Responsibility," Journal of Business Ethics, Springer, vol. 132(4), pages 641-660, December.
    17. Terjesen, Siri & Sealy, Ruth, 2016. "Board Gender Quotas: Exploring Ethical Tensions From A Multi-Theoretical Perspective," Business Ethics Quarterly, Cambridge University Press, vol. 26(1), pages 23-65, January.
    18. Throstur Sigurjonsson & Audur Arnardottir & Vlad Vaiman & Pall Rikhardsson, 2015. "Managers’ Views on Ethics Education in Business Schools: An Empirical Study," Journal of Business Ethics, Springer, vol. 130(1), pages 1-13, August.
    19. Mark Kroll & Bruce A. Walters & Peter Wright, 2008. "Board vigilance, director experience, and corporate outcomes," Strategic Management Journal, Wiley Blackwell, vol. 29(4), pages 363-382, April.
    20. King, Michael R. & Santor, Eric, 2008. "Family values: Ownership structure, performance and capital structure of Canadian firms," Journal of Banking & Finance, Elsevier, vol. 32(11), pages 2423-2432, November.
    21. María del Carmen Triana & Toyah L. Miller & Tiffany M. Trzebiatowski, 2014. "The Double-Edged Nature of Board Gender Diversity: Diversity, Firm Performance, and the Power of Women Directors as Predictors of Strategic Change," Organization Science, INFORMS, vol. 25(2), pages 609-632, April.
    22. Torchia, Mariateresa & Calabrò, Andrea & Gabaldon, Patricia & Kanadli, Sadi Bogac, 2018. "Women directors contribution to organizational innovation: A behavioral approach," Scandinavian Journal of Management, Elsevier, vol. 34(2), pages 215-224.
    23. Jay B. Barney, 1996. "The Resource-Based Theory of the Firm," Organization Science, INFORMS, vol. 7(5), pages 469-469, October.
    24. Helen Kang & Mandy Cheng & Sidney J. Gray, 2007. "Corporate Governance and Board Composition: diversity and independence of Australian boards," Corporate Governance: An International Review, Wiley Blackwell, vol. 15(2), pages 194-207, March.
    25. Pathan, Shams & Faff, Robert, 2013. "Does board structure in banks really affect their performance?," Journal of Banking & Finance, Elsevier, vol. 37(5), pages 1573-1589.
    26. Karam, Charlotte M. & Jamali, Dima, 2013. "Gendering CSR in the Arab Middle East: An Institutional Perspective," Business Ethics Quarterly, Cambridge University Press, vol. 23(1), pages 31-68, January.
    27. Vlad Vaiman & Throstur Sigurjonsson & Páll Davídsson, 2011. "Weak Business Culture as an Antecedent of Economic Crisis: The Case of Iceland," Journal of Business Ethics, Springer, vol. 98(2), pages 259-272, January.
    28. repec:dau:papers:123456789/11419 is not listed on IDEAS
    29. Chen, Jie & Leung, Woon Sau & Evans, Kevin P., 2018. "Female board representation, corporate innovation and firm performance," Journal of Empirical Finance, Elsevier, vol. 48(C), pages 236-254.
    30. Mohammad Jizi, 2017. "The Influence of Board Composition on Sustainable Development Disclosure," Business Strategy and the Environment, Wiley Blackwell, vol. 26(5), pages 640-655, July.
    31. Denise Lewin Loyd & Cynthia S. Wang & Katherine W. Phillips & Robert B. Lount, 2013. "Social Category Diversity Promotes Premeeting Elaboration: The Role of Relationship Focus," Organization Science, INFORMS, vol. 24(3), pages 757-772, June.
    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. Benkraiem, Ramzi & Boubaker, Sabri & Brinette, Souad & Khemiri, Sabrina, 2021. "Board feminization and innovation through corporate venture capital investments: The moderating effects of independence and management skills," Technological Forecasting and Social Change, Elsevier, vol. 163(C).
    2. Nguyen, Thi Hong Hanh & Ntim, Collins G. & Malagila, John K., 2020. "Women on corporate boards and corporate financial and non-financial performance: A systematic literature review and future research agenda," International Review of Financial Analysis, Elsevier, vol. 71(C).
    3. Rania Béji & Ouidad Yousfi & Abdelwahed Omri, 2020. "Corporate Social Responsibility and Corporate Governance: A cognitive approach," Post-Print hal-03144756, HAL.
    4. Adeel Mustafa & Abubakr Saeed & Muhammad Awais & Shahab Aziz, 2020. "Board-Gender Diversity, Family Ownership, and Dividend Announcement: Evidence from Asian Emerging Economies," JRFM, MDPI, vol. 13(4), pages 1-20, March.
    5. Alharbi, Rana & Elnahass, Marwa & McLaren, Josie, 2022. "Women directors and market valuation: What are the “Wonder Woman” attributes in banking?," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 80(C).
    6. Rania B'eji & Ouidad Yousfi & Abdelwahed Omri, 2021. "Corporate Social Responsibility and Corporate Governance: A cognitive approach," Papers 2102.09218, arXiv.org.
    7. Katia Furlotti & Tatiana Mazza & Veronica Tibiletti & Silvia Triani, 2019. "Women in top positions on boards of directors: Gender policies disclosed in Italian sustainability reporting," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 26(1), pages 57-70, January.
    8. Liu, Yonghong & Lei, Lijun & Buttner, E. Holly, 2020. "Establishing the boundary conditions for female board directors’ influence on firm performance through CSR," Journal of Business Research, Elsevier, vol. 121(C), pages 112-120.
    9. Adams, Kweku & Attah-Boakye, Rexford & Yu, Honglan & Johansson, Jeaneth & Njoya, Eric Tchouamou, 2023. "Female board representation and coupled open innovation: Evidence from emerging market multinational enterprises," Technovation, Elsevier, vol. 124(C).
    10. Kara, Alper & Nanteza, Aziidah & Ozkan, Aydin & Yildiz, Yilmaz, 2022. "Board gender diversity and responsible banking during the COVID-19 pandemic," Journal of Corporate Finance, Elsevier, vol. 74(C).
    11. Steven A. Brieger & Claude Francoeur & Christian Welzel & Walid Ben-Amar, 2019. "Empowering Women: The Role of Emancipative Forces in Board Gender Diversity," Journal of Business Ethics, Springer, vol. 155(2), pages 495-511, March.
    12. Kent Baker, H. & Pandey, Nitesh & Kumar, Satish & Haldar, Arunima, 2020. "A bibliometric analysis of board diversity: Current status, development, and future research directions," Journal of Business Research, Elsevier, vol. 108(C), pages 232-246.
    13. Đặng, Rey & Houanti, L’Hocine & Reddy, Krishna & Simioni, Michel, 2020. "Does board gender diversity influence firm profitability? A control function approach," Economic Modelling, Elsevier, vol. 90(C), pages 168-181.
    14. 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).
    15. Patrizia Pastore & Silvia Tommaso & Antonio Ricciardi, 2017. "The Market Reaction to the Appointment of Women on Corporate Boards: Evidence from the Italian Listed Companies," International Journal of Business and Management, Canadian Center of Science and Education, vol. 12(12), pages 1-64, November.
    16. Ioannis Tampakoudis & Andreas Andrikopoulos & Michail Nerantzidis & Nikolaos Kiosses, 2022. "Does boardroom gender diversity affect shareholder wealth? Evidence from bank mergers and acquisitions," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 27(3), pages 3315-3344, July.
    17. Nooraisah Katmon & Zam Zuriyati Mohamad & Norlia Mat Norwani & Omar Al Farooque, 2019. "Comprehensive Board Diversity and Quality of Corporate Social Responsibility Disclosure: Evidence from an Emerging Market," Journal of Business Ethics, Springer, vol. 157(2), pages 447-481, June.
    18. Paul B. McGuinness & João Paulo Vieito & Mingzhu Wang, 2020. "Proactive government intervention, board gender balance, and stakeholder engagement in China and Europe," Asia Pacific Journal of Management, Springer, vol. 37(3), pages 719-762, September.
    19. Atif, Muhammad & Hossain, Mohammed & Alam, Md Samsul & Goergen, Marc, 2021. "Does board gender diversity affect renewable energy consumption?," Journal of Corporate Finance, Elsevier, vol. 66(C).
    20. Bayly, Nicholas & Breunig, Robert & Wokker, Chris, 2023. "Female Board Representation and Corporate Performance: A Review and New Estimates for Australia," IZA Discussion Papers 16617, Institute of Labor Economics (IZA).

    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:jmgtgv:v:26:y:2022:i:3:d:10.1007_s10997-020-09562-6. 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.