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Gender equality within boards: comparing quota and soft law

Author

Listed:
  • Sophie Harnay

    (EconomiX (UMR 7235), UPL, Université Paris Nanterre, CNRS, 200 avenue de la République, 92001 Nanterre cedex, France)

  • Fabienne Llense

    (EconomiX (UMR 7235), UPL, Université Paris Nanterre, CNRS, 200 avenue de la République, 92001 Nanterre cedex, France)

  • Antoine Rebérioux

    (LADYSS (UMR 7533), Université Paris Cité, 8 place Paul Ricoeur, 75013 Paris, France)

  • Gwenaël Roudaut

    (Département d’économie, Ecole Polytechnique, Route de Saclay, 91128 Palaiseau cedex, France)

Abstract

In 2011, Britain and France introduced affirmative action policies aiming at improving board gender mix in listed companies. While the reforms were similar in terms of target and timing, Britain opted for a ‘soft law’ (comply or explain) approach, while France enacted a mandatory quota. Using difference-in-differences analyses, we examine the differential impact of these two reforms on board composition and on women empowerment within boards. We first show that the quota has been associated with a more rapid adjustment of the gender mix without significant disruptive effects on board composition. However, we report that the quota has induced a more limited access of women to monitoring committees within boards, relative to soft law. As these committees are the most influential, this evidence shows that the quota came at a cost when considering within-board women’s influence.

Suggested Citation

  • 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).
    • Handle: RePEc:afd:wpaper:2408
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    References listed on IDEAS

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    More about this item

    Keywords

    company boards; gender inequalities; leadership positions; quota; soft law; board committees;
    All these keywords.

    JEL classification:

    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination
    • J78 - Labor and Demographic Economics - - Labor Discrimination - - - Public Policy (including comparable worth)
    • K22 - Law and Economics - - Regulation and Business Law - - - Business and Securities Law
    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance
    • G38 - Financial Economics - - Corporate Finance and Governance - - - Government Policy and Regulation

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