Gender and Board Activeness: The Role of a Critical Mass
Michigan State University
March 23, 2015
This study analyzes detailed minutes of board meetings of business companies in which the Israeli government holds a substantial equity interest. Boards with at least three directors of each gender are found to be at least 79% more active at board meetings than boards without such representation of both genders. This phenomenon is particularly driven by women directors, who are more active when a critical mass of at least three women directors is in attendance. Gender-balanced boards are also likely to replace underperforming CEOs, and to be particularly active during periods in which companies are in the process of replacing their CEO.
Number of Pages in PDF File: 63
Keywords: boards of directors, gender, active boards, firm performance
JEL Classification: D71, D73, G30, J01, J16, L21, M10
Date posted: June 23, 2011 ; Last revised: March 24, 2015
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