Closing the Gap: Gender Quotas and Corporate Board Composition
70 Pages Posted: 26 Jun 2017 Last revised: 17 Feb 2020
Date Written: February 5, 2020
We study the impact of board gender quotas on firms’ hiring and retention practices. We find that female director retention rates increase following the introduction of a quota in France in 2011, with stronger effects observed among less gender-diverse firms and firms that regularly employ directors who are members of the French business elite. We also find that female directors hired after the quota are more independent, more experienced, more internationally diverse, and no less academically qualified than those hired before the quota. The gender gaps in most director characteristics have also narrowed. The evidence suggests that the introduction of a board gender quota forces firms to adopt alternative hiring practices, which may allow them to tap into a deeper talent pool.
Keywords: Corporate Boards, Gender Quotas, Corporate Governance, Labor Markets, Matching, Turnover
JEL Classification: G34, G38, J70, J63
Suggested Citation: Suggested Citation