Women on Bank Boards: Evidence from Gender Quotas around the World

Abstract

Using a sample of 469 banks from 39 countries between 2008 and 2017 and a generalized difference-in-differences methodology, we show that board gender quota laws lead to increased female board representation. We find an increase in risk taking and systemic risk and worse long-run operating performance post quota law for banks most impacted by the reforms, and those located in countries with a smaller pool of qualified women executives. Results suggest that the addition of younger and less experienced female board members to important board committees due labor market constraints drive the risk taking and performance outcomes.

Keywords: Gender quotas, director independence, bank risk taking, bank performance

JEL Classification: G15, G21, G28