Mandating Women on Boards: Evidence from the United States

77 Pages Posted: 17 Oct 2018 Last revised: 22 Dec 2020

See all articles by Sunwoo Hwang

Sunwoo Hwang

University of Cambridge Judge Business School; University of North Carolina (UNC) at Chapel Hill - Kenan-Flagler Business School; Korea University Business School

Anil Shivdasani

University of North Carolina Kenan-Flagler Business School

Elena Simintzi

University of North Carolina Kenan-Flagler Business School; Centre for Economic Policy Research (CEPR)

Date Written: October 13, 2018

Abstract

On September 30, 2018, California became the first U.S. state to set quotas for women directors on corporate boards. The law resulted in a decline in shareholder value for firms headquartered in California. This decline increases with the number of female directors required to be added under these quotas. We find evidence that supply-side constraints drive the announcement effects. The law expanded the supply of women in the director pool. Female directors appointed to meet the quotas are as skilled as male directors, but possess a less similar set of skills and are given fewer responsibilities on the board.

Keywords: board of directors, gender diversity, female directors, quotas

JEL Classification: G3, K2, J2, J7

Suggested Citation

Hwang, Sunwoo and Shivdasani, Anil and Simintzi, Elena, Mandating Women on Boards: Evidence from the United States (October 13, 2018). Kenan Institute of Private Enterprise Research Paper No. 18-34, Available at SSRN: https://ssrn.com/abstract=3265783. or http://dx.doi.org/10.2139/ssrn.3265783

Sunwoo Hwang

University of Cambridge Judge Business School ( email )

Trumpington Street
Cambridge, CB2 1AG
United Kingdom

University of North Carolina (UNC) at Chapel Hill - Kenan-Flagler Business School ( email )

McColl Building
Chapel Hill, NC 27599-3490
United States

HOME PAGE: http://www.sunwoohwang.com

Korea University Business School ( email )

Seoul, 136-701
United States

Anil Shivdasani (Contact Author)

University of North Carolina Kenan-Flagler Business School ( email )

Kenan-Flagler Business School
Chapel Hill, NC 27599-3490
United States
919-962-3182 (Phone)
919-962-2068 (Fax)

Elena Simintzi

University of North Carolina Kenan-Flagler Business School ( email )

McColl Building, Room 4200B
300 Kenan Center Drive
Chapel Hill, NC 27599-3490
United States

Centre for Economic Policy Research (CEPR) ( email )

London
United Kingdom

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