Do gender quotas change attitudes towards female directors?

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See all articles by S Lakshmi Naaraayanan

S Lakshmi Naaraayanan

London Business School

Kasper Meisner Nielsen

Copenhagen Business School - Department of Finance

Date Written: December 18, 2020

Abstract

We study the long-term effect of gender quotas in India, the largest emerging market to mandate female directors on corporate boards. After the reform, female independent director appointments increase from less than 10% to over 30%. The marginal female director is of similar quality, as measured by education, specialization, and stock price reactions, as the marginal male director. Further, we find that the gender gap in director remuneration decreases from 18% to 3%. Overall, our results suggest that gender quotas can deepen and diversify talent pools in emerging markets where lower corporate governance standards often impede board composition and director quality.

Keywords: Gender quota, Female directors, Independent directors, Board composition, Director quality

JEL Classification: G30, G34,J33, M41

Suggested Citation

Naaraayanan, S Lakshmi and Nielsen, Kasper Meisner, Do gender quotas change attitudes towards female directors? (December 18, 2020). Available at SSRN: https://ssrn.com/abstract=

S Lakshmi Naaraayanan (Contact Author)

London Business School ( email )

Sussex Place
Regent's Park
London NW1 4SA
United Kingdom

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

Kasper Meisner Nielsen

Copenhagen Business School - Department of Finance ( email )

A4.17 Solbjerg Plads 3
Copenhagen, Frederiksberg 2000
Denmark

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