Realizing Gender Diversity on Corporate Boards

Can Shareholder Activism Improve Gender Diversity on Corporate Boards?

The Two-Pronged Approach of the (Semi-)Legal Norms on Gender Diversity: Exploratory Empirical Research on Corporate Boards of Dutch Listed Companies

PurposeThis paper aims to examine the relevance of boards in driving firm level performance. For this purpose, it considers firms listed on Ireland and Spain stock exchanges for the period 2005 to 2014, over a period that includes the global financial crisis.Design/methodology/approachThis study uses panel data regression analysis to analyse the effects of board characteristics on performance and also uses alternate model specifications to test the significance of robustness of relationships.FindingsThe impact of board size on performance is negative and significant for Irish and Spanish firms for the study period. In general, the board independence has a positive effect on the performance of Spanish firms for the complete study period and suggests consistency with the resource dependency theory.Research limitations/implicationsThe analysis suggests that in general, the non-executive and the board size do not affect the corporate performance of Irish and Spanish firms during the financial crisis. The fixed effects model suggests positive effects of gender diversity on performance for Spanish firms, while the random effects indicates negative relationship between gender diversity and performance for Irish companies.Practical implicationsThe evidence on the Spanish firms suggests that female representation on the boards may be critical during the financial crisisSocial implicationsThe quota legislation on female board representation in Spain is yielding superior results over the soft law approach by Irish firms during the times of financial crisis period.Originality/valueThis study contributes to the literature on the corporate governance practices and performance of two countries that were strongly affected by the crisis in the European Union. As governments increasingly contemplate board gender diversity policies, this study offers useful empirical insights on Spanish and Irish firms.

Purpose This study aims to examine the association between board characteristics (namely, diligence, independence, gender diversity, size and expertise) and sustainability-related disclosures (SRD) in Malaysia. Design/methodology/approach A robust SRD index of 409 items is used to derive SRD scores for 56 Malaysian listed companies from 2018 to 2020, yielding 168 observations. Pooled ordinary least squares is applied to test the research hypotheses and model. Findings The authors find that board members in audit committees and female board members show a significant relationship with SRD, casting doubt on the widely held belief that other board characteristics (such as size, diligence, independence and expertise) independently impact SRD. However, the authors find that market influence (firm value) and firm size are associated with SRD. Practical implications SRD is at its nascent stage, and companies are cherry-picking on what to report, as evidenced in the SRD scores. Regulators and policymakers must recognize the complex interplay between various factors impacting SRD for the timely issuance of comprehensive rules for firms to comply. The regulators’ drive for more female board representation can be a boost to enhance the sustainability agenda for Malaysian listed companies. The SRD scoring template can be used on post-2020 data to investigate the sustainability maturity of Malaysian listed companies. Originality/value The authors evidence that SRD practice is in the early stages of maturity using the comprehensive SRD scoring template. Although the findings contradict prior studies, the authors believe this is driven by the robust SRD measure based on the latest Global Reporting Initiative and Bursa rules.

Policies for enhancing patent quality: Evidence from renewable energy technology in China

The connection between gender diversity and firm performance: Evidence from Taiwan

Female board representation is increasingly debated in research and practice. This paper problematises how board representation as such may not be the issue, but rather how well nested the women are: that is, whether there is a difference in board members' representation on multiple boards between women and men and how this affects the woman's influence, or power, on a particular board. This paper relates such representations not only to whether women hold several board positions, but also to the shape of the network that the multiple representations create. The paper points at how the power of women on boards varies with (1) the existence of few or many interlocks on the board, (2) the number of representations held by the female board member, (3) the fragmented or large network that the female board member is part of, and (4) whether the network consists of direct or indirect links.

Female board representation, corporate innovation and firm performance

Follow-up examinations are commonly performed after primary treatment for women with breast cancer. They are used to detect recurrences at an early (asymptomatic) stage. This is an update of a Cochrane review first published in 2000. To assess the effectiveness of different policies of follow-up for distant metastases on mortality, morbidity and quality of life in women treated for stage I, II or III breast cancer. For this 2014 review update, we searched the Cochrane Breast Cancer Group's Specialised Register (4 July 2014), MEDLINE (4 July 2014), Embase (4 July 2014), CENTRAL (2014, Issue 3), theWorld Health Organization (WHO) International Clinical Trials Registry Platform (4 July 2014) and ClinicalTrials.gov (4 July 2014). References from retrieved articles were also checked. All randomised controlled trials (RCTs) assessing the effectiveness of different policies of follow-up after primary treatment were reviewed for inclusion. Two review authors independently assessed trials for eligibility for inclusion in the review and risk of bias. Data were pooled in an individual patient data meta-analysis for the two RCTs testing the effectiveness of different follow-up schemes. Subgroup analyses were conducted by age, tumour size and lymph node status. Since 2000, one new trial has been published; the updated review now includes five RCTs involving 4023 women with breast cancer (clinical stage I, II or III).Two trials involving 2563 women compared follow-up based on clinical visits and mammography with a more intensive scheme including radiological and laboratory tests. After pooling the data, no significant differences in overall survival (hazard ratio (HR) 0.98, 95% confidence interval (CI) 0.84 to 1.15, two studies, 2563 participants, high-quality evidence), or disease-free survival (HR 0.84, 95% CI 0.71 to 1.00, two studies, 2563 participants, low-quality evidence) emerged. No differences in overall survival and disease-free survival emerged in subgroup analyses according to patient age, tumour size and lymph node status before primary treatment. In 1999, 10-year follow-up data became available for one trial of these trials, and no significant differences in overall survival were found. No difference was noted in quality of life measures (one study, 639 participants, high-quality evidence).The new included trial, together with a previously included trial involving 1264 women compared follow-up performed by a hospital-based specialist versus follow-up performed by general practitioners. No significant differences were noted in overall survival (HR 1.07, 95% CI 0.64 to 1.78, one study, 968 participants, moderate-quality evidence), time to detection of recurrence (HR 1.06, 95% CI 0.76 to 1.47, two studies, 1264 participants, moderate-quality evidence), and quality of life (one study, 356 participants, high-quality evidence). Patient satisfaction was greater among patients treated by general practitioners. One RCT involving 196 women compared regularly scheduled follow-up visits versus less frequent visits restricted to the time of mammography. No significant differences emerged in interim use of telephone and frequency of general practitioners's consultations. This updated review of RCTs conducted almost 20 years ago suggests that follow-up programs based on regular physical examinations and yearly mammography alone are as effective as more intensive approaches based on regular performance of laboratory and instrumental tests in terms of timeliness of recurrence detection, overall survival and quality of life.In two RCTs, follow-up care performed by trained and not trained general practitioners working in an organised practice setting had comparable effectiveness to that delivered by hospital-based specialists in terms of overall survival, recurrence detection, and quality of life.

This study explores the impact of female directors on the investment efficiency of Korean firms, especially under conditions of cost stickiness. Using data from firms listed on the Korean Stock Exchange between 2014 and 2021, regression is employed to determine the relationship between female board representation and investment efficiency. The results show that female directors do not significantly affect investment efficiency under typical economic conditions, but their influence becomes more pronounced during periods of cost stickiness. In these circumstances, the presence of female directors is associated with enhanced investment efficiency, suggesting that they promote more disciplined financial strategies under economic stress. These findings advance the understanding of gender diversity in corporate governance, highlighting the conditions under which female directors are most effective. The study also offers valuable insights for policymakers and investors, underscoring the strategic importance of gender diversity on corporate boards in enhancing firm performance during challenging economic times.

This paper discusses the antecedents of firms’ target-setting for female representation on executive boards as a signal of intent. Our analyses are based on targets disclosed by firms in their annual reports and supplemental secondary data. We find that firm size, prior female executive board representation, executive board size as well as female representation on the supervisory board predict firm targets. Our findings suggest that the motivations for aspirational talk on gender representation are similar to those of actual female representation i.e. signals of quality. We contribute to literature on signaling and voluntary quotas in the gender context by distinguishing between quality signals and signals of intent.

PurposeGender diversity is extensively debated and researched in relation to corporate boards. The focus on the gender composition on single boards neglects an important issue: that of how the power of board members is impacted by their representation on other boards. Board interlocks refer to how a board member is also represented on other companies’ boards, and such representation expectedly makes the individual board member more influential in the boardroom than non-connected board members. The purpose of this paper is to investigate whether and how female board interlocks are considered in previous research on gender diversity on boards.Design/methodology/approachA systematic literature review was conducted. It comprised 71 highly cited articles. The articles were analyzed to grasp their content, and specifically, female influence in the boardroom related to power.FindingsThe literature review reveals that the interlock perspective is rare in studies on women’s board representation. This is so, even while evidence is provided that females often need companions to get their meanings across on the boards, despite how interlocks would create one link of such power, and although the literature points to how female board representation plays a part to explain performance, social responsibilities and overall strategic directions of firms.Originality/valueContributions are made to previous research by indicating the potential of further research in a largely neglected area of research while also summarizing the previous reporting on women on boards.

Many previous studies found an inconsistent relationship between female board representation and corporate social responsibility performance. However, the underlying processes that produce the mixed relationship are still unclear. Building on stakeholder theories and social exchange theories, the author proposes that the moderating influence from the institutional environment can explain this mixed relationship. Specifically, the author suggests that organizations in countries with high democratic voice and accountability (i.e., more diverse regulatory regimes in such countries, which include more open and transparent voices from citizens) will strengthen the positive effect of female board representation on corporate social responsibility performance toward stakeholders who have less institutional power. The main contribution is to explicate the moderating effect of democratic voice and accountability that potentially produces the mixed relationship between female board representation and corporate social responsibility performance and reconcile inconclusive findings in the literature.

Intra-Firm Hierarchies and Gender Gaps

Agricultural Marketing Co-operative Societies (AMCOS) are known for their contribution to the world economy. While the success of AMCOS depends on the effectiveness of board members in executing its roles, the effectiveness of board members on the other hand depends on characteristics possessed by the board. This study analysed the boards’ characteristics and perceived effectiveness among rural AMCOS in Kaliua district, Tanzania. using cross-sectional survey design, data were collected from eight randomly selected AMCOS with a total sample size of 50 respondents, of whom 40 were board members, and 10 were key informants. A structured questionnaire was employed to gather quantitative data, whereas an interview guide for key informants was utilised to obtain qualitative data. The quantitative data were analysed using descriptive statistics, and the qualitative data were examined through thematic analysis. Findings reported that boards had a mix of effective and ineffective characteristics. On one side, the average chairperson’s age, board members’ age, tenure and board size reflect effective board characteristics. On the other hand, board members' gender (female percentage), average chairperson’s education, average board members’ education, meeting attendance, and training frequency reflect ineffective board characteristics. It was concluded that although AMCOS in the study area had a mix of board characteristics, the ineffective characteristics (57%) dominated over the effective ones. Based on the study’s findings, it is recommended that AMCOS should allocate enough funds for regular board training on various aspects including cooperative governance to improve their leadership knowledge, skills, and competence. In addition, awareness campaigns should be conducted by AMCOS to encourage female members to participate in AMCOS leadership positions (board members). Sensitisation campaigns should also encourage young AMCOS members with secondary and tertiary education to contest for board member positions. The study also recommends a review of cooperative legislation to enforce appropriate board characteristics including board members’ gender diversity, education level and training among others.