Effectiveness of Gender Regulations on Boards of Directors: The Role of the Institutional Environment
CNMV Bulletin, Quarter I, 2020, pages 149-176
28 Pages Posted: 8 Oct 2020
Date Written: August 20, 2020
This article analyses the effectiveness of the different regulations promoting gender diversity on boards of directors and how formal and informal institutional factors influence the relationship between regulations and the presence of female directors on boards. It describes the gender diversity regulations implemented in Europe, and goes on to analyse, for a group of companies forming part of the STOXX Europe 600 index and for the period 2004-2018: i) how the presence of women on boards of directors has evolved in each of the countries represented in the sample; ii) the impact of Corporate Governance Codes with recommendations on gender diversity and gender quotas, with and without sanctions, on the presence of women on boards of directors and board committees, and iii) how formal and informal institutional factors, such as the quality and transparency of governance and cultural aspects, influence the effectiveness of regulations. Lastly, we look at the regulations and institutional environment in Spain. The results show the importance of formal and informal institutions as key instruments to the effectiveness of gender diversity regulations and suggest a number of factors that should be considered when designing future actions and policies in this area.
Keywords: corporate governance, women directors, quota, soft law
JEL Classification: G30, G38, M14
Suggested Citation: Suggested Citation