Women on Boards: The Superheroes of Tomorrow?
European Corporate Governance Institute (ECGI) - Finance Working Paper No. 466/2016
60 Pages Posted: 30 Nov 2015 Last revised: 15 Apr 2016
Date Written: March 2016
Can female directors help save economies and the firms on whose boards they sit? Policy makers seem to think so. Numerous countries have implemented boardroom gender policies because of business case arguments. While women may be the key to healthy economies, I argue that more research needs to be done to understand the benefits of board diversity. The literature faces three main challenges: data limitations, selection and causal inference. Recognizing and dealing with these challenges is important for developing informed research and policy. Negative stereotypes may be one reason women are underrepresented in management. It is not clear that promoting them on the basis of positive stereotypes does them, or society, a service.
Keywords: Gender, Boards of Directors, Business Case, Selection, Causal Inference, Policy, Quota
JEL Classification: J16, J22, G34, G38
Suggested Citation: Suggested Citation