Abstract
In this article, we examine the factors determining the representation of women on boards of directors by considering three main questions. The first question deals with the relationship between characteristics of ownership and governance on one side, and female directorship on the other. The second major question concerns the demographic attributes of women directors, such as nationality, foreign experience, educational level, business expertise, and connections to external sources. The third important question refers to women in senior positions on French boards (e.g., as independent members or board subcommittee members) in relation to firm characteristics and women’s demographic attributes. Our study focuses on French large- and mid-capitalized companies belonging to the SBF120 stock market index during a 5-year period running from 2000 to 2004. First, our results give evidence that the appointment of women directors is strongly related to family ownership and board or firm size. Second, the appointment of women directors is related to their professional services, valuable skills, and network links. Furthermore, we show that women face a double glass-ceiling problem, and note that French firms rely more on the demographic attributes of their women directors when they are appointed to senior board positions. Our study sheds light on issues concerning the law that comes into force in 2016, which imposes quotas of women members on boards of directors in French companies.
Similar content being viewed by others
Notes
The number of women directors is expected to rise in France after its parliament approved a law on January 13, 2011, which imposes quotas for the gender balance of company boards. Within the next 3 years, 20% of a firm’s board members must be women, and this percentage should rise to 40 within the following 6 years. This law applies to firms belonging to the CAC 40 stock market index, or those with more than 500 employees, with a revenue exceeding €50 million over the previous 3 years. Sweden has also proposed a legal requirement that 25% of board seats should be taken by female directors, while Norway required 40% female representation by the end of 2008 and Spain requires 40% female representation by the end of 2015.
Virtue ethics refers to relaxing one or more ethical principles to achieve acceptable and workable solutions (Kitchener and Anderson 2011).
The presence of audit committees in French listed firms only became mandatory after the entry into force of the Order of December 8, 2008, which transposes into French law the Directive of the European Parliament and of the Council of the European Union on statutory audits of annual accounts.
In particular, two firms can exhibit the same percentage of women board members while having different numbers of women at board level.
Listed companies must disclose in their annual report the identity of shareholders or concert parties holding more than 5% of the voting rights. The administrative declaration or request for authorization must provide the identity of known major shareholders holding more than 5%. So, for many of our sample firms, only shareholders with at least 5% of capital can be identified.
An alternative approach to modeling count data is the negative binomial regression. Our results are quite similar across the two estimation methods, be it the Poisson regression or the negative binomial regression.
Given the small number of females in our data sample, it is not possible to obtain statistically significant results with regard to the type of operating committees.
The interested reader can find more practical and legal updated information at http://www.grant-thornton.co.uk/thinking/the_boardroom/index.php/governanceregulations_templates/article/pressure_remains_on_companies_to_improve_female_representation_on_boards/.
References
Adams, R. B., & Ferreira, D. (2009). Women in the boardroom and their impact on governance and performance. Journal of Financial Economics, 94(2), 291–309.
Adams, S. M., & Flynn, P. M. (2005). Local knowledge advances women’s access to corporate boards. Corporate Governance: An international Review, 13(6), 836–846.
Adams, R. B., & Mehran, H. (2003). Is corporate governance different for bank holding companies. Economic Policy Review, 9, 123–142.
Ahern, K. R., & Dittmar, K. D. (2010). The changing of the boards: The value effect of a massive exogenous shock, mimeo. University of Michigan.
Akaah, I. P. (1989). Differences in research ethics judgments between male and female. Journal of Business Ethics, 8(5), 375–381.
Alder, G. S., & Gilbert, J. (2006). Achieving ethics and fairness in hiring: Going beyond the law. Journal of Business Ethics, 68(4), 449–464.
Anderson, R. C., Reeb, D. M., Upadhyay, A., & Zhao, W. (2011). The economics of director heterogeneity. Financial Management, 40(1), 5–38.
Arfken, D. E., Bellar, S. L., & Helms, M. M. (2004). The ultimate glass ceiling revisited: The presence of women on corporate boards. Journal of Business Ethics, 50(2), 177–186.
Bear, S., Rahman, N., & Post, C. (2010). The impact of board diversity and gender composition on corporate social responsibility and firm reputation. Journal of Business Ethics, 97(2), 207–221.
Beasley, M. S. (1996). An empirical analysis of the relation between the board of director composition and financial statement fraud. The Accounting Review, 71, 443–465.
Ben Amar, W., Francoeur, C., Hafsi, T., & Labelle, R. (2012). What makes better boards? A closer look at diversity and ownership. British Journal of Management. doi:10.1111/j.1467-8551.2011.00789.x
Bergeron, D. M., Block, C. J., & Echtenkamp, A. (2006). Disabling the able: Stereotype threat and women’s work performance. Human Performance, 19(2), 133–158.
Bernardi, R. A., & Arnold, D. F. (1997). Examination of moral development within public accounting by gender, staff level, and firms. Contemporary Accounting Research, 14(4), 653–668.
Bhagat, S., & Bolton, B. (2008). Corporate governance and firm performance. Journal of Corporate Finance, 14, 257–273.
Bhagat, S., Bolton, B., & Romano, R. (2008). The promise and peril of corporate governance indices. Columbia Law Review, 108, 1803–1882.
Bilimoria, D. (2000). Building the business case for women corporate directors. In R. J. Burke & M. C. Mattis (Eds.), Women on corporate boards of directors: International challenges and opportunities (pp. 25–40). Dordrecht: Kluwer.
Bilimoria, D., & Piderit, S. K. (1994). Board committee membership: Effects of sex-based bias. Academy of Management Journal, 37, 1453–1477.
Bloch, L., & Kremp, E. (2001). Ownership and voting power in France. In F. Barca & M. Becht (Eds.), The control of corporate Europe. Oxford: Oxford University Press.
Brammer, S., Millington, A., & Pavelin, S. (2007). Gender and ethnic diversity among UK corporate boards. Corporate Governance: An International Review, 15(2), 393–403.
Brickley, J. A., Coles, J. L., & Jarrell, G. (1997). Leadership structure: Separating the CEO and chairman of the board. Journal of Corporate Finance, 3, 189–220.
Broome, L. L. (2008). The corporate boardroom: Still a male club. Journal of Corporation Law, 33(3), 665–680.
Broome, L. L., Conley, J., & Krawiek, K. (2011). Dangerous categories: Narrative of corporate board diversity. North Carolina Law Review, 89(3), 759–808.
Broye, G., & Schatt, A. (2003). Sous–évaluation à l’introduction et cessions d’actions par les actionnaires d’origine : le cas français. Finance Contrôle Stratégie, 6(2), 67–89.
Bugeja, M., Spiropoulos, H., & Matolcsy, Z. (2011). The association between gender–diverse compensation committees, CEO Compensation and Firm Performance. Available at SSRN: http://ssrn.com/abstract=1944972.
Burgess, Z. M., & Tharenou, P. (2000). What distinguishes women nonexecutive directors from executive directors? In R. J. Burke & M. C. Mattis (Eds.), Women in management: International challenges and opportunities (pp. 111–127). Dordrecht: Kluwer.
Burgess, Z., & Tharenou, P. (2002). Women board directors: Characteristics of the few. Journal of Business Ethics, 37(1), 39–49.
Burke, R. J. (1997). Women on corporate boards of directors: A needed resource. Journal of Business Ethics, 16(9), 909–915.
Burke, R. (2000). Company size, board size, and the numbers of women corporate directors. In R. Burke & M. Mattis (Eds.), Women on corporate boards of directors: International challenges and opportunities (pp. 118–125). Dordrecht: Kluwer.
Burke, R. J., & McKeen, C. A. (1990). Mentoring in organizations: Implications for women. Journal of Business Ethics, 9(4–5), 317–332.
Calabro, A. (2011). Boards of directors and state-owned enterprises’ innovation. In Governance structure and mechanisms in public service organizations—theories, evidence and future directions (Chap. 5, pp. 93–120), Springer, Berlin.
Cameron, A. C., & Trivedi, P. K. (2005). Microeconometrics: Methods and applications. Cambridge: Cambridge University Press.
Campbell, K., & Minguez-Vera, A. (2008). Gender diversity in the boardroom and firm financial performance. Journal of Business Ethics, 83(3), 435–451.
Carpenter, M. A., Sanders, G. W., & Gregersen, H. B. (2001). Bundling human capital with organizational context: The impact of international assignment experience on multinational firm performance and CEO pay. Academy of Management Journal, 44(3), 493–511.
Carter, D. A., Simkins, B. J., & Simpson, W. G. (2003). Corporate governance board diversity, and firm value. Financial Review, 38, 33–53.
Claessens, S., Djankov, S., & Lang, L. (2000). The separation of ownership and control in East Asian corporations. Journal of Financial Economics, 58(1–2), 81–112.
Cox, D. R. (1983). Some remarks on overdispersion. Biometdka, 70(1), 269–274.
Croson, R., & Gneezy, U. (2009). Gender differences in preferences. Journal of Economic Literature, 47(2), 448–474.
Dalton, D. R., Daily, C. M., Johnson, J. L., & Ellstrand, A. E. (1999). Number of directors and financial performance: A meta analysis. Academy of Management Journal, 42(6), 674–686.
De Cabo, R. M., Gimeno, R., & Nieto, M. J. (2012). Gender diversity on European bank’s boards of directors. Journal of Business Ethics, 109(2), 145–162.
Dobbin, F., & Jung, J. (2011). Corporate board gender diversity and stock performance: The competence gap or institutional investor bias? North Carolina Law Review, 89(3), 809–838.
Doldor, E., Vinnicombe, S., Gaughan, M., Sealy, R. (2012). Gender diversity on boards: The appointment process and the role of executive search firms. Equality and Human Rights Commission Research Report, 85.
Elstad, B., & Ladegard, G. (2010). Women on corporate boards: Key influencers or tokens? Journal of Management and Governance, 14(1), 1–21.
Erhardt, N., Werbel, J., & Shrader, C. (2003). Board of director diversity and firm financial performance. Corporate Governance, 11(2), 102–111.
Faccio, M., & Lang, L. H. P. (2002). The separation of ownership and control: An analysis of ultimate ownership in Western European corporations. Journal of Financial Economics, 65(3), 365–395.
Fama, E. F., & Jensen, M. C. (1983). Agency Problems and Residual Claims. Journal of Law and Economics, 26(2), 327–349.
Falkenberg, L., & Monachello, M. (1990). Dual-career and dual-income families: Do they have different needs? Journal of Business Ethics, 9(4–5), 339–351.
Fama, E. F. (1980). Agency problems and the theory of the firm. Journal of Political Economy, 88(2), 288–307.
Farrell, K. A., & Hersch, P. L. (2005). Additions to corporate boards: The effect of gender. Journal of Corporate Finance, 11(1–2), 85–106.
Financial Reporting Council. (2010). UK corporate governance code 2010. http://www.frc.org.uk/corporate/ukcgcode.cfm.
Francoeur, C., Labelle, R., & Sinclair-Desgagné, B. (2008). Gender diversity in corporate governance and top management. Journal of Business Ethics, 81(1), 83–95.
Franke, G. R., Crown, D. F., & Spake, D. F. (1997). Gender differences in ethical perceptions of business practices: A social role theory perspective. Journal of Applied Psychology, 82, 920–934.
Fuqua, D. R., & Newman, J. L. (2006). Moral and ethical issues in human systems. Consulting Psychology Journal: Practice and Research, 58(4), 206–215.
Galbreath, J. (2011). Are there gender-related influences on corporate sustainability? A study of women on boards of directors. Journal of Management and Organization, 17(1), 17–38.
Gompers, P. A., Ishii, J. L., & Metrick, A. (2003). Corporate governance and equity prices. Quarterly Journal of Economics, 118(1), 107–155.
Gregory, A. (1990). Are women different and why are women thought to be different? Theoretical and Methodological Perspectives. Journal of Business Ethics, 9(4–5), 257–266.
Gul, F. A., Srinidhi, B., & Ng, A. C. (2011). Does board gender diversity improve the informativeness of stock prices? Journal of Accounting and Economics, 51(3), 314–338.
Hambrick, D. C., & Mason, P. A. (1984). Upper echelons: The organization as a reflection of its top managers. Academy of Management Review, 9, 193–206.
Harris, I. C., & Shimizu, K. (2004). Too busy to serve? An examination of the influence of overboarded directors. Journal of Management Studies, 41(5), 775–798.
Harrison, D. A., & Klein, K. J. (2007). What’s the difference? Diversity constructs as separation, variety, or disparity in organizations. Academy of Management Review, 32(4), 1199–1228.
Hermalin, B. E., & Weisbach, M. S. (1998). Endogenously chosen boards of directors and their monitoring of the CEO. American Economic Review, 88(1), 96–118.
Hermalin, B. E., & Weisbach, M. S. (2003). Boards of directors as an endogenously determined institution: A survey of the economic evidence. Economic Policy Review, 9, 7–26.
Hillman, A. J., Cannella, A. A., & Paetzold, R. L. (2000). The resource dependence role of corporate directors: Strategic adaptation of board composition in response to environmental change. Journal of Management Studies, 37(2), 235–255.
Hillman, A. J., & Dalziel, T. (2003). Boards of directors and firm performance: Integrating agency and resource dependence perspectives. Academy of Management Review, 28(3), 383–396.
Hillman, A. J., Shropshire, C., & Canella, A. A. Jr. (2007). Organizational predictors of women on corporate boards. Academy of Management Journal, 50(4), 941–952.
Holton, V. (2000). Taking a seat on the board: Women directors in Britain. In R. J. Burke & M. C. Mattis (Eds.), Women on corporate boards of directors: International challenges and opportunities (pp. 145–156). London: Kluwer.
Hossain, M., Cahan, S. F., & Adams, M. B. (2000). The investment opportunity set and the voluntary use of outside directors: New Zealand evidence. Accounting and Business Research, 30, 263–272.
Hyland, M. M., & Marcellino, P. A. (2002). Examining gender on corporate boards: A regional study. Corporate Governance: An International Review, 2(4), 24–31.
Institute of Business Ethics. (2011). Business ethics and board diversity. Business Ethics Briefing, 21(September), 1–6.
Johnson, R. A., & Greening, D. W. (1999). The effects of corporate governance and institutional ownership types on corporate social performance. Academy Management Journal, 42(5), 564–576.
Kang, E., Ding, D. K., & Charoenwong, C. (2010). Investor reaction to women directors. Journal of Business Research, 63, 888–894.
Kesner, I. F. (1988). ‘Directors’ characteristics and committee membership: An investigation of type, occupation, tenure, and gender. Academy of Management Journal, 31(1), 66–84.
Kitchener, K. S., & Anderson, S. K. (2011). Foundations of ethical, practice, research, and teaching in psychology and counseling (2nd ed.). New York: Routledge.
Klein, A. (2002). Audit committees, board of director characteristics and earnings management. Journal of Accounting and Economics, 33(3), 375–400.
Krishnan, G. V., & Parsons, L. M. (2007). Getting to the bottom line: An exploration of gender and earnings quality. Journal of Business Ethics, 78(1–2), 65–76.
La Porta, R., Lopez-de-Silanes, F., & Shleifer, A. (1999). Corporate ownership around the world. Journal of Finance, 54(2), 471–513.
La Porta, R., Lopez-de-Silanes, F., Shleifer, A., & Vishny, R. (2002). Investor protection and corporate valuation. Journal of Finance, 57, 1147–1170.
Labelle, R., Makni Gargouri, R., & Francoeur, C. (2010). Ethics, diversity management, and financial reporting quality. Journal of Business Ethics, 93(2), 335–353.
Larkin, M. B., Bernardi, R. A., & Bosco, S. M. (2012). Board gender diversity, corporate reputation and market performance. The International Journal of Banking and Finance, 9(1), 1–26.
Lester, R. H., & Canella, A. A. (2006). Interorganizational familiness: How family firms use interlocking directorates to build community-level social capital. Entrepreneurship Theory and Practice, 30(6), 755–776.
Li, C. A., & Wearing, B. (2004). Between glass ceilings: Female non-executive directors in UK quoted companies. International Journal of Disclosure and Governance, 1(4), 355–372.
Luckerath-Rovers, M. (2011). Women on boards and firm performance. Journal of Management and Governance. doi:10.1007/s10997-011-9186-1 (published online).
Mak, Y. T., & Li, Y. (2001). Determinants of corporate ownership and board structure: Evidence from Singapore. Journal of Corporate Finance, 7(3), 235–256.
Martin-Alcazar, F., Romero-Fernandez, P. M., & Sanchez-Gardey, G. (2012). Transforming human resource management systems to cope with diversity. Journal of Business Ethics, 107(4), 511–531.
Mattis, M. C. (1993). Women directors: Progress and opportunities for the future. Business & the Contemporary World, 5(3), 140–156.
Mattis, M. C. (2000). Women corporate directors in the United States. In R. J. Burke & M. C. Mattis (Eds.), Women on corporate boards of directors (pp. 43–56). Dordrecht: Kluwer.
McNulty, T., Pettigrew, A., Jobome, G., & Morris, C. (2011). The role, power and influence of company chairs. Journal of Management and Governance, 15(1), 91–121.
Newman, J. L., & Fuqua, D. R. (2006). What does it profit an organization if it gains the whole world and loses its own soul? Consulting Psychology Journal: Practice and Research, 58(1), 13–22.
Newman, J. L., Gray, E. A., & Fuqua, D. R. (1996). Beyond ethical decision making. Consulting Psychology Journal: Practice and Research, 48(4), 230–236.
Ng, E. S., & Sears, G. J. (2012). CEO leadership styles and the implementation of organizational diversity practices: Moderating effects of social values and age. Journal of Business Ethics, 105(1), 41–52.
O’Connor, T. (2006). Cross listing in the US and domestic investor protection. Quarterly Review of Economics and Finance, 46, 413–436.
Oakley, J. G. (2000). Gender-based barriers to senior management positions: Understanding the scarcity of female CEOs. Journal of Business Ethics, 27(4), 321–334.
Peterson, C. A., & Philpot, J. (2007). Women’s role on US fortune 500 boards: Director expertise and committee memberships. Journal of Business Ethics, 72(2), 177–196.
Rhode, D. L., & Packel, A. K. (2010). Diversity on corporate boards: How much difference does difference make? Rock Center for Corporate Governance, Working paper series 89
Rock, S., Stanley, S., & Willenborg, M. (2001). Analyst following and count-data econometrics. Journal of Accounting & Economics, 30(3), 351–373.
Rodriguez-Dominguez, L., Gallego-Alvarez, I., & Garcia-Sanchez, I. (2009). Corporate governance and codes of ethics. Journal of Business Ethics, 90(2), 187–202.
Rose, C. (2007). Does female board representation influence firm performance? Corporate Governance, 15(2), 404–413.
Ruigrok, W., Peck, S., & Tacheva, S. (2007). Nationality and gender diversity on swiss corporate boards. Corporate Governance, 15(4), 546–557.
Ryan, M. K., & Haslam, S. A. (2007). The glass cliff: Exploring the dynamics surrounding women’s appointment to precarious leadership positions. Academy of Management Review, 32(2), 549–572.
Sheridan, A., & Milgate, G. (2005). Accessing board positions: A comparison of women’s and men’s views. Corporate Governance: An International Review, 13(6), 847–855.
Singh, V., Kumra, S., & Vinnicombe, S. (2002). Gender and impression management: Playing the promotion game. Journal of Business Ethics, 37(1), 77–89.
Singh, V., & Point, S. (2006). (Re)Presentations of gender and ethnicity in diversity statements on European company websites. Journal of Business Ethics, 68(4), 363–379.
Singh, V., Terjesen, S., & Vinnicombe, S. (2008). Newly appointed directors in the boardroom: How do women and men differ? European Management Journal, 26(1), 48–58.
Singh, V., Vinnicombe, S., & Johnson, P. (2001). Women directors on top UK boards. Corporate Governance: An International Review, 9(3), 206–216.
Srinidhi, B., Gul, F. A., & Tsui, J. S. L. (2011). Female directors and earnings quality. Contemporary Accounting Research, 28(5), 1610–1644.
Sun, J., Liu, G., & Lan, G. (2011). Does female directorship on independent audit committees constrain earnings management? Journal of Business Ethics, 99(3), 369–382.
Terjesen, S., Sealy, R., & Singh, V. (2009). Women directors on corporate boards: a review and research agenda. Corporate Governance: An International Review, 17(3), 320–337.
Terjesen, S., & Singh, V. (2008). Female presence on corporate boards: A multi-country study of environmental context. Journal of Business Ethics, 83(1), 55–63.
Torchia, M., Calabro, A., & Huse, M. (2011). Women directors on corporate boards: From tokenism to critical mass. Journal of Business Ethics, 102(2), 299–317.
Ueng, J., Koehn, D., & Chang, C. L. (2009). Relationships between director profile and restatements of suspect earnings. Journal of Business & Economics Research, 7(4), 75–92.
Vafeas, N. (1999). Board meeting frequency and firm performance. Journal of Financial Economics, 53(1), 113–142.
Vinnicombe, S., Sealy, R., Graham, J., & Doldor, E. (2010). The female FTSE board report 2010. Opening up the appointment process. International Centre for Women Leaders, Cranfield School of Management.
Westphal, J. D., & Milton, L. P. (2000). How experience and network ties affect the influence of demographic minorities on corporate boards. Administrative Science Quarterly, 45(2), 366–398.
Williams, R. J. (2003). Women on corporate boards of directors and their influence on corporate philanthropy. Journal of Business Ethics, 42(1), 1–10.
World Development Report. (2012). Gender equality and development. World Bank.
Author information
Authors and Affiliations
Corresponding author
Rights and permissions
About this article
Cite this article
Nekhili, M., Gatfaoui, H. Are Demographic Attributes and Firm Characteristics Drivers of Gender Diversity? Investigating Women’s Positions on French Boards of Directors. J Bus Ethics 118, 227–249 (2013). https://doi.org/10.1007/s10551-012-1576-z
Received:
Accepted:
Published:
Issue Date:
DOI: https://doi.org/10.1007/s10551-012-1576-z