Gender and Board Activeness: The Role of a Critical Mass
55 Pages Posted: 23 Jun 2011 Last revised: 28 Jul 2015
Date Written: July 14, 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 those without such representation. This phenomenon is driven by women directors in particular; they are more active when a critical mass of at least three women is in attendance. Gender-balanced boards are also more likely to replace underperforming CEOs and are particularly active during periods when CEOs are being replaced.
Keywords: boards of directors, gender, active boards, firm performance
JEL Classification: D71, D73, G30, J01, J16, L21, M10
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