When Does Board Diversity Benefit Firms?

56 Pages Posted: 12 Sep 2018

See all articles by Darren Rosenblum

Darren Rosenblum

Pace Law School; University of California, Berkeley - Berkeley Center on Comparative Equality & Anti-Discrimination Law

Date Written: August 29, 2018

Abstract

Firms embrace diversity, especially with regard to sex. Overtly optimistic predictions of a diversity dividend, some built on sex stereotypes, lead these firms to count on profits that may never materialize. This Article attempts to reset the agenda on how to study corporate board diversity. We can only assess if and how sex diversity yields benefits by understanding the who, what, and where of diversity. Whether sex diversity produces a “diversity dividend” depends on three key factors: (1) the nature of the benefit of including women (whether for their experience or other qualities); (2) the kind of firm and its governance; and (3) the jurisdiction(s) in which the firm operates. Only by further investigating the precise conditions under which diversity will have an effect can we estimate the potential instrumental benefits of sex diversity.

Keywords: corporate governance, corporate boards, diversity, sex equality

Suggested Citation

Rosenblum, Darren, When Does Board Diversity Benefit Firms? (August 29, 2018). Available at SSRN: https://ssrn.com/abstract=3240332 or http://dx.doi.org/10.2139/ssrn.3240332

Darren Rosenblum (Contact Author)

Pace Law School ( email )

78 North Broadway
White Plains, NY 10603
United States
914 422 4663 (Phone)

University of California, Berkeley - Berkeley Center on Comparative Equality & Anti-Discrimination Law

Boalt Hall
Berkeley, CA 94720-7200
United States

Register to save articles to
your library

Register

Paper statistics

Downloads
73
Abstract Views
371
rank
319,769
PlumX Metrics