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1 – 10 of over 14000Bill Dimovski, Luisa Lombardi, Christopher Ratcliffe and Barry John Cooper
There is a large literature advocating the importance of a greater proportion of women directors on boards of publicly listed firms. The purpose of this paper is to examine the…
Abstract
Purpose
There is a large literature advocating the importance of a greater proportion of women directors on boards of publicly listed firms. The purpose of this paper is to examine the numbers and proportions of women directors, including women executive directors, on listed Australian Real Estate Management and Development (REMD) companies to identify how prevalent women directors are on such boards.
Design/methodology/approach
The study examines the numbers and proportions of women directors for 35 REMDs in 2011 and compares this to the broad board composition data on 1,715 Australian Stock Exchange listed entities. Statistically significant findings are evident due to the identified low proportions.
Findings
The study finds that of all the Financials Sub Industry sector groups, REMDs have the lowest proportion of female directors on theirs boards – eight women on each of 35 company boards compared to 159 men on these 35 boards at 2011. Of the eight, there were only two women executive directors on boards compared to 50 men. Statistically, it appears that having women directors on REMD boards is not considered important. Even at December 2014, there are only ten women on seven company boards and only one remaining executive director of an REMD company.
Practical implications
Given that female board representation is positively related to accounting returns and that there is a growing voice for legislation to impose mandatory proportions of women directors on boards around the world, it may be in the interests of REMD boards to consider appointing more women more quickly.
Originality/value
The study is the first to examine the numbers and proportions of women directors amongst REMD companies to identify the paucity of such women directors.
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Jacqui Shilton, Judy McGregor and Marianne Tremaine
Changes to government policy, deregulation and corporatization in New Zealand have influenced the number and status of women on boards of directors. Using company records…
Abstract
Changes to government policy, deregulation and corporatization in New Zealand have influenced the number and status of women on boards of directors. Using company records, archival material and interviews, examines gender equity on boards of directors in New Zealand and compares the progress of women on the boards of corporate companies in the private sector with those on crown company boards in the public sector. While increasing numbers of New Zealand women are entering the business arena, they continue to be underrepresented in the boardrooms and there exists a clear disparity between gender representation on the boards of crown and corporate companies with women being disadvantaged in the private sector. Includes interview material from women who have successfully achieved directorships and examines the approaches they adopted. Outlines some positive steps to assist women in the bid for corporate directorship, but suggests that the challenge of changing corporate and societal attitudes remains.
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Jacqui Shilton, Judy McGregor and Marianne Tremaine
Changes to government policy, deregulation and corporatization in New Zealand have influenced the number and status of women on boards of directors. Using company records…
Abstract
Purpose
Changes to government policy, deregulation and corporatization in New Zealand have influenced the number and status of women on boards of directors. Using company records, archival material and interviews, this paper seeks to examine gender equity on boards of directors in New Zealand and compare the progress of women on the boards of corporate companies in the private sector with those on crown company boards in the public sector.
Design/methodology/approach
The paper includes interview material from women who have successfully achieved directorships and examines the approaches they adopted. The paper uses company records and interviews to achieve this aim.
Findings
While increasing numbers of New Zealand women are entering the business arena, they continue to be underrepresented in the boardrooms and there exists a clear disparity between gender representation on the boards of crown and corporate companies with women being disadvantaged in the private sector.
Originality/value
The paper outlines some positive steps to assist women in the bid for corporate directorship, but suggests that the challenge of changing corporate and societal attitudes remains.
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Sneh Bhardwaj, Damian Morgan and Natalie Elms
Situated in the context of India, where women’s representation on corporate boards remains low, this study aims to explore whether and how tokenism impacts the behaviours of…
Abstract
Purpose
Situated in the context of India, where women’s representation on corporate boards remains low, this study aims to explore whether and how tokenism impacts the behaviours of female directors.
Design/methodology/approach
The boardroom experiences and perceptions of 14 women directors are explored through semi-structured interviews and analysed using an inductive and interpretive process. Also, to get a counter perspective and avoid the social desirability bias from the women participants’ responses, 16 men directors are interviewed.
Findings
The study finds that, as gender minorities, women directors' visibility on boards can create performance pressures on these women. To counter gender-based prejudices, women directors consciously alter their behaviours and project both male and female traits consistent with the director role. By doing so, women directors overcome tokenistic stereotypes and are accepted as part of the director in-group, irrespective of their numeric representation on the board.
Practical implications
The research has implications for governments attempting to increase women’s board presence through affirmative actions and for firms aiming to improve the gender diversity of their board composition.
Originality/value
These findings present an alternative perspective on women directors’ board behaviour by exploring the applicability of Western trends on tokenism and critical mass in the context of India, adding to the vast body of literature concerned with minorities on corporate boards.
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Alicia R. Ingersoll, Christy Glass and Alison Cook
This study aims to analyze the connection between institutional isomorphic pressures and both women serving on boards and women’s influence on boards within large American firms.
Abstract
Purpose
This study aims to analyze the connection between institutional isomorphic pressures and both women serving on boards and women’s influence on boards within large American firms.
Design/methodology/approach
This study examines a longitudinal panel data set of all Standard and Poor’s (S&P) 500 organizations across a seven-year period from 2009 to 2015.
Findings
The analyses affirm that institutional isomorphic pressures impact the prevalence and influence of women on boards. Evidence suggests that coercive and normative pressures strongly impact the number of women serving as corporate directors, whereas the power of women directors is linked only to mimetic pressures.
Practical implications
The research suggests that to increase the number of women serving as directors, the industry must first increase the overall number of women serving in senior management roles. Once women directors gain a critical mass of three women on the board, the association with the total number of women directors, the number of boards upon which they concurrently serve, the power of women directors being selected to board leadership and the influence of women directors increase.
Originality/value
This paper extends existing board diversity work by examining institutional pressures at the international, national and firm levels. By examining the relationship between coercive, normative and mimetic pressures on both the prevalence of women on boards and the influence of women on boards, the authors illuminate certain mechanisms that shape the likelihood of board appointment and placement in more powerful positions.
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Valentina Tarkovska, Patricia Gabaldon and Raluca Valeria Ratiu
The interest in promoting diversity in corporate governance is increasing gender equality on boards. Even so, previous research shows that women are underrepresented on boards of…
Abstract
Purpose
The interest in promoting diversity in corporate governance is increasing gender equality on boards. Even so, previous research shows that women are underrepresented on boards of directors. This study aims to explore how an increasing presence of women on boards reduces gender pay disparity among nonexecutive directors (NEDs).
Design/methodology/approach
This study explores how an increasing presence of women on boards reduces gender pay disparity among NEDs.
Findings
The results indicate that for boards to reduce the gender pay disparity among NEDs, women need to reach a critical mass of 33% of board members. In addition, this study finds that women’s presence on influential committees further reduces the gender pay disparity among NEDs.
Research limitations/implications
The study uses critical mass and social identity theories to explain the impact of women directors on NEDs’ remuneration in a sample of 365 companies listed on the London Stock Exchange over 16 years (1999–2015). The findings indicate the importance of reducing gender pay disparity as a tool to promote gender equality on boards.
Practical implications
This study provides evidence on the importance of corporations including gender diversity on board committees to reduce gender pay disparities at the board level.
Originality/value
In addition, this study finds that women’s presence on influential committees further reduces gender pay disparity among NEDs.
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Frank Lefley and Václav Janeček
The corporate communications literature recently focused on corporate board gender diversity, specifically looking at two central aspects: gender quotas and equitable target…
Abstract
Purpose
The corporate communications literature recently focused on corporate board gender diversity, specifically looking at two central aspects: gender quotas and equitable target percentages for women on corporate boards. This paper extends the debate by focusing on board gender diversity and critical mass theory.
Design/methodology/approach
The paper gives a conceptual viewpoint on the issues raised in the literature on board gender diversity through a critical mass theory lens.
Findings
Following the 2022 European Union (EU) directive, all EU member states will have to attain a 40% women representation on large corporate boards to achieve board gender diversity and what has been termed a “critical mass”. However, the literature indicates that gender diversity benefits may not be achieved if a critical mass is not composed of independent women directors who create a voice that produces a collective action. The authors highlight why a critical mass may not be achieved. The inconsistency in prior research linking corporate board gender diversity to economic performance may result from the critical mass of women directors not reflecting an independent collective action. However, as gender-diverse boards evolve, the authors argue that women will not just be seen as female directors but will be accepted on equal terms with their male counterparts and have an equal voice; gender will no longer be an issue and critical mass theory may then become irrelevant.
Practical implications
From a corporate communications perspective, this study will focus the minds of human resources (HR) professionals on the importance of the composition of women on corporate boards if the HR professionals wish to obtain the full potential benefits of board gender diversity. Theoretically, this study highlights the importance of critical mass and collective action when researching the economic benefits of corporate board gender diversity. Investment analysts may wish to look more closely at the structure of corporate boards and not just the numbers.
Originality/value
This paper gives a conceptual viewpoint on the critical mass theory and corporate board gender diversity, identifying that it is not just the numbers that are important but also the issue of minority independence and collective action, and this is, therefore, unique in this respect. Future research should identify if a critical mass (not just numbers) of women on corporate boards has been achieved. Only then that the linkage, based on critical mass theory, between board gender diversity and corporate performance/profitability can be made. Knowing whether board sizes are being increased to accommodate the added female directors would be also interesting, or will the new female directors replace existing male directors? However, the most important research question, once gender diversity has been achieved, could be: Is critical mass theory relevant with respect to board gender diversity?
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Aitzaz Ahsan Alias Sarang, Asad Ali Rind, Mamdouh Abdulaziz Saleh Al-Faryan and Asif Saeed
This study aims to examine whether information asymmetry (IA) mediates the relationship between women directors and the cost of equity (COE). Specifically, this study posits that…
Abstract
Purpose
This study aims to examine whether information asymmetry (IA) mediates the relationship between women directors and the cost of equity (COE). Specifically, this study posits that women directors tend to lower the COE through the channel of IA.
Design/methodology/approach
This study uses the US-listed firms’ data from 2002 to 2014, comprising 11,189 firm-year observations. This study measures the COE by aggregating the four unique market-based COE models and apply pooled ordinary least square to estimate our results.
Findings
This study documents that women directors are linked to IA, and that IA is linked to the COE. Furthermore, in the mediation test, IA fully mediates the relationship between women directors and the COE. This study's results also validate the critical mass hypothesis, as the IA shows full mediation between the critical mass of women directors and COE. This study also discusses the limitations and major implications of the results along with possible future directions.
Social implications
This study also supports the positive role of females in improvising the economic performance of the firms and supporting the sustainable development goals-5 (gender equality).
Originality/value
The originality of this study lies in its theoretical as well as empirical contributions. First, this study follows the line of inquiry of the mediation analysis, thereby contributing by examining whether the relationship between women directors and financial value, i.e. COE, is indirect. Second, in addition to ex post measures of the COE, this study used four ex ante unique market-based models to measure the COE. Most of the prior studies just rely on book-based measures or use a single market-based mode. Third, the findings contribute insights into how women directors add value and benefits firms.
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William Dimovski, Luisa Lombardi and Barry Cooper
This is the first paper which aims to investigate factors that might influence the gender composition of boards of directors of Australian Real Estate Investment Trusts (A‐REITs).
Abstract
Purpose
This is the first paper which aims to investigate factors that might influence the gender composition of boards of directors of Australian Real Estate Investment Trusts (A‐REITs).
Design/methodology/approach
This study follows Mateos de Cabo, Gimeno and Nieto and the gender diversity literature and investigates the existence and number of women directors on the boards of directors of 37 A‐REITs from 2006 to 2011.
Findings
There is evidence that larger (by market capitalization) A‐REITs are more likely to employ a woman director and that A‐REITs with larger boards are more likely to employ a woman director and indeed more women directors. It also appears that A‐REITs whose head office is in Sydney are more likely to employ a woman director and also more women directors.
Practical implications
Women seeking to be engaged as directors of A‐REITs are more likely to be employed by larger A‐REITs (by market capitalization), those with larger boards and those located in Sydney.
Originality/value
This paper adds to the existing literature on gender diversity by examining the factors that appear to influence the employment of women on A‐REIT Boards.
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Ramzi Benkraiem, Amal Hamrouni, Faten Lakhal and Nadia Toumi
This paper aims to investigate the joint effect of board independence and gender diversity on the effectiveness of boards in monitoring CEO compensation in a continental European…
Abstract
Purpose
This paper aims to investigate the joint effect of board independence and gender diversity on the effectiveness of boards in monitoring CEO compensation in a continental European context, i.e. France.
Design/methodology/approach
Fixed-effect regressions are used to study the impact of board independence, gender diversity and their interaction, i.e. the proportion of female independent directors on the different components of CEO compensation (total, fixed and variable).
Findings
The authors observe that both the proportions of independent directors and women sitting on the boards positively influence the various components of CEO compensation. However, the interaction of these factors, i.e. the proportion of female independent directors, is negatively associated with CEO compensation. These results suggest that independent women directors improve board effectiveness in monitoring CEO compensation, especially its fixed component.
Originality/value
The results of this research help to elucidate the importance of women being appointed to boards as independent directors to properly monitor managerial pay. These results provide support to the approach of the French Cope-Zimmerman law of January 2011, which promotes female representation on boards as independent directors to enhance board decision-making. Thus, evidence presented and discussed in this paper should provide useful insights for academics, corporate managers and regulators.
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