The Old Boys’ Club and Board Gender Diversity: Evidence from the Anti-corruption Campaign in China

This paper reveals that male-dominant social networks through alcohol drinking is an important determinant that hinders women ascending onto corporate boards. Specifically, exploiting China's anti-corruption campaign launched in 2012 as an exogenous shock to the business drinking interactions, we find that the policy-induced reduction in alcohol drinking significantly promotes board gender diversity in Chinese listed firms. Further evidence shows that the effect of reduced alcohol drinking on board gender diversity is more pronounced in cities with a higher intensity of anti-corruption investigations and cities with less severe gender discrimination. Our empirical findings support the “old boys’ club” hypothesis, suggesting that male-dominant social networks hamper the access of qualified women to higher positions in the workplace.