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http://hdl.handle.net/10397/93646
Title: | Limited progress? The effect of external pressure for board gender diversity on the increase of female directors | Authors: | Knippen, JM Shen, W Zhu, Q |
Issue Date: | 2019 | Source: | Strategic management journal, 2019, v. 40, no. 7, p. 1123-1150 | Abstract: | Research Summary: This study explores how external pressure for board gender diversity influences the increase of female directors. We propose that while external pressure has a positive effect on the increase of female directors on boards, it heightens the salience of gender in new director selection, making incumbent male directors more likely to treat the new female directors as outgroup members and consequently more likely to add them through addition of board seats rather than substitution of male directors. We further predict that new female directors added through additional board seats are less likely to serve on major board committees than those added through substitution of male directors. Results from a large sample of S&P 1,500 firms during 2004 to 2015 provide support our theoretical predictions. Managerial Summary: Our study intends to enhance the understanding of how external pressure influences a firm's decision to increase the number of female directors on the board. We find that, although external pressure makes firms more likely to increase female directors, firms tend to do it through the addition of board seats rather than through the replacement of incumbent male directors to the extent that the increase is a response to the external pressure. Moreover, we find that new female directors added through addition of board seats are less likely to serve on major board committees than those added through replacement of male directors. These findings suggest that external pressure has a positive but limited effect on countering the gender bias on corporate boards toward female directors. |
Keywords: | Board of directors Corporate governance Diversity Female directors Intergroup bias |
Publisher: | John Wiley & Sons | Journal: | Strategic management journal | ISSN: | 0143-2095 | EISSN: | 1097-0266 | DOI: | 10.1002/smj.3014 | Rights: | © 2019 John Wiley & Sons, Ltd. This is the peer reviewed version of the following article: Knippen, J. M., Shen, W., & Zhu, Q. (2019). Limited progress? The effect of external pressure for board gender diversity on the increase of female directors. Strategic Management Journal, 40(7), 1123-1150, which has been published in final form at https://doi.org/10.1002/smj.3014. This article may be used for non-commercial purposes in accordance with Wiley Terms and Conditions for Use of Self-Archived Versions. This article may not be enhanced, enriched or otherwise transformed into a derivative work, without express permission from Wiley or by statutory rights under applicable legislation. Copyright notices must not be removed, obscured or modified. The article must be linked to Wiley’s version of record on Wiley Online Library and any embedding, framing or otherwise making available the article or pages thereof by third parties from platforms, services and websites other than Wiley Online Library must be prohibited. |
Appears in Collections: | Journal/Magazine Article |
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Knippen_External_Pressure_Gender.pdf | Pre-Published version | 1.67 MB | Adobe PDF | View/Open |
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