Board Gender Diversity in Business Groups: Exploring the Cascading Effect between Headquarters and Affiliates

59 Pages Posted: 10 Sep 2020

See all articles by Paula M Infantes

Paula M Infantes

ESADE Business School

Bartolomé Pascual-Fuster

University of the Balearic Islands

Date Written: July 31, 2020

Abstract

This study explores the cascading effect of board gender diversity within business groups. In particular, we empirically test whether board gender diversity in headquarters is positively associated with board gender diversity in lower layers of hierarchical business groups. We, moreover, analyze the empowerment of women directors in the boardroom, and we moderate by some business groups characteristics that may impact the influence of headquarters. We find a positive relationship between board gender diversity in headquarters and affiliates. This suggests that the existence of women at the top stimulates gender diversity in affiliates, and that this finding is influenced by several business group characteristics. However, the presence of women in board executive positions is not associated with an increase in gender diversity across business groups’ affiliates.

Keywords: Women directors, board gender diversity, business groups, inter-organizational dynamics, homophily theory

Suggested Citation

Infantes, Paula M and Pascual-Fuster, Bartolomé, Board Gender Diversity in Business Groups: Exploring the Cascading Effect between Headquarters and Affiliates (July 31, 2020). Available at SSRN: https://ssrn.com/abstract=3664613 or http://dx.doi.org/10.2139/ssrn.3664613

Paula M Infantes (Contact Author)

ESADE Business School ( email )

Av. de Pedralbes, 60-62
Barcelona, 08034
Spain

Bartolomé Pascual-Fuster

University of the Balearic Islands ( email )

Ctra. de Valldemossa km 7,5
Palma, Baleares 07122
Spain
+34 971 172652 (Phone)
+34 971 172389 (Fax)

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