Do CEOs with daughters have greater board gender diversity?

Abstract

Purpose: This study investigates the influence of a CEO's children's gender on board gender diversity by leveraging insights from the female socialization theory. It posits that CEOs with daughters are more likely to internalize gender-inclusive values, and thus exhibit a more favorable attitude towards female representation in corporate governance. Methodology: We examine the effects of a CEO with a daughter, multiple daughters, and specifically a daughter as their first-born child, on the gender composition of the firm's board of directors. Our analysis encompasses the percentage of women on the board, likelihood of achieving critical mass (defined as having three or more female directors), representation of women on key board committees, and shareholder voting patterns for female directors. Findings: Aligning with our hypotheses, firms led by CEOs with daughters demonstrate significantly higher board gender diversity. Furthermore, the presence of female directors is correlated with more favorable perceptions and increased support from shareholders. Originality: This study enhances the growing body of literature on the determinants of female director appointments and the broader implications of CEO personal attributes on corporate governance practices. Implications: Our findings suggest that the personal characteristics and gender-related perspectives of CEOs are pivotal in promoting an inclusive corporate environment and advancing gender diversity in board leadership.

Keywords: JEL Classification: G30, M14 Gender board diversity, female socialization theory, CEO characteristics, female directors, corporate governance