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European board structure and director expertise: The impact of quotas

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  • Lending, Claire Crutchley
  • Vähämaa, Emilia

Abstract

This paper examines the relationship between the presence of female board members and measures of board independence and director expertise in Europe. We examine public corporations in countries that introduce gender quotas as well as those in a sample of countries without quotas. As shown in earlier papers, the quotas increase the percentage of females on the board; we also find pending quotas are associated with greater female board representation. We find some evidence that female representation is associated with greater board independence in the Nordic countries, but a legislated but not yet enforced quota decreases this positive association. In Southern Europe female representation is positively related to board expertise but the pending gender quota decreases this relationship. The paper provides empirical evidence that the composition of the board varies based on the gender of directors, but not to a great extent. This paper also reveals that pending and required quotas affect board structure.

Suggested Citation

  • Lending, Claire Crutchley & Vähämaa, Emilia, 2017. "European board structure and director expertise: The impact of quotas," Research in International Business and Finance, Elsevier, vol. 39(PA), pages 486-501.
    • Handle: RePEc:eee:riibaf:v:39:y:2017:i:pa:p:486-501
    DOI: 10.1016/j.ribaf.2016.09.004
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    Cited by:

    1. Bello, Lawal, 2024. "Women Directors: An Empirical Test of Critical Mass Hypothesis," International Business Research, Canadian Center of Science and Education, vol. 17(2), pages 1-46, April.
    2. Sophie Harnay & Fabienne Llense & Antoine Rebérioux & Gwenaël Roudaut, 2024. "Gender equality within boards: comparing quota and soft law," Working Papers AFED 24-08, Association Francaise d'Economie du Droit (AFED).
    3. 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.
    4. Irma Martinez-Garcia & Silvia Gomez-Anson, 2020. "Regulación de género en los consejos de administración: El papel moderador del entorno institucional," CNMV Documentos de Trabajo CNMV Documentos de Trabaj, CNMV- Comisión Nacional del Mercado de Valores - Departamento de Estudios y Estadísticas.
    5. Francisco Bravo, 2018. "Does board diversity matter in the disclosure process? An analysis of the association between diversity and the disclosure of information on risks," International Journal of Disclosure and Governance, Palgrave Macmillan, vol. 15(2), pages 104-114, May.
    6. Rakesh Radav, 2017. "Women Directors' Compensation and Firm Performance of an Emerging Economy: India," EconWorld Working Papers 17003, WERI-World Economic Research Institute, revised Mar 2017.

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    More about this item

    Keywords

    Corporate governance; Board composition; European economy;
    All these keywords.

    JEL classification:

    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance
    • G38 - Financial Economics - - Corporate Finance and Governance - - - Government Policy and Regulation
    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination

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