Practice What You Preach: A Multilevel Perspective on Stock Exchanges' Female Directorship

Stock exchanges, as organisations, have traditionally been male‐dominated and run as old boys' clubs; however, they increasingly face societal pressures for board gender diversity. Despite these pressures, the gender diversity of exchange boards remains low. Surprisingly, although exchanges are expected to set an example for corporate governance practices, their board gender strategies have been underexamined. Drawing on institutional theory and the strategic response approach, we use a unique hand‐collected firm‐level dataset comprising a representative sample of stock exchanges worldwide and covering a 25‐year period to investigate the predictors of exchanges' compliance with those pressures, adopting a multilevel approach. We find that mandatory quotas, having a female CEO, and the representation of directors with solid business backgrounds positively impact gender diversity. We also find that national culture plays a role.