Women Directors and E&S Performance: Evidence from Board Gender Quotas

61 Pages Posted: 23 Apr 2021 Last revised: 19 Oct 2023

See all articles by Edith Ginglinger

Edith Ginglinger

Université Paris-Dauphine, PSL Research University; European Corporate Governance Institute (ECGI)

Caroline Gentet-Raskopf

Université Paris-Dauphine, PSL Research University

Date Written: January 10, 2020

Abstract

Using the natural experiment created by France's 2011 board gender quota law, we find that the presence of women on boards increases firms’ environmental and social (E&S) performance. After the quota law, firms are more likely to create an E&S committee, and women directors are increasingly serving as members of the main board committees and as chairs of E&S committees. We find that prior to being recruited to boards, women directors have more environmental and social experience than men. Combined with their increased authority after the introduction of quotas, their E&S skills allow them to steer companies toward more E&S-oriented policies.

Keywords: board of directors, gender quotas, gender diversity, critical mass theory, board committees, environmental and social committee, environmental and social performance, corporate social responsibility (CSR), director skills.

JEL Classification: G34, G38, J16, K38, M14

Suggested Citation

Ginglinger, Edith and Gentet-Raskopf, Caroline, Women Directors and E&S Performance: Evidence from Board Gender Quotas (January 10, 2020). European Corporate Governance Institute – Finance Working Paper No. 760/2021, Université Paris-Dauphine Research Paper No. 3832100, Journal of Corporate Finance, Forthcoming, Available at SSRN: https://ssrn.com/abstract=3832100 or http://dx.doi.org/10.2139/ssrn.3832100

Edith Ginglinger (Contact Author)

Université Paris-Dauphine, PSL Research University ( email )

Place du Maréchal de Tassigny
Paris, Cedex 16 75775
France

European Corporate Governance Institute (ECGI) ( email )

c/o the Royal Academies of Belgium
Rue Ducale 1 Hertogsstraat
1000 Brussels
Belgium

Caroline Gentet-Raskopf

Université Paris-Dauphine, PSL Research University ( email )

Place du Maréchal de Tassigny
Paris, Cedex 16 75775
France

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