1.Gender diversity in boards Countries Reforms about gender diversity British All companies should voluntarily reserve a minimum of 25%of their board seats for female directors. Sweden Gender diversity is a legal requirement. Norway Mandatory Gender quota(40%for female). France It planned to promote gender quota in companies' boards before 2016. Belgium Its company law has instituted a regulation about gender diversity. Australia All companies should disclose their targets about gender diversity
1. Gender diversity in boards Countries Reforms about gender diversity British All companies should voluntarily reserve a minimum of 25% of their board seats for female directors. Sweden Gender diversity is a legal requirement. Norway Mandatory Gender quota (40% for female). France It planned to promote gender quota in companies’ boards before 2016. Belgium Its company law has instituted a regulation about gender diversity. Australia All companies should disclose their targets about gender diversity
1.Gender diversity in boards Question: Why the gender diversity in boards is so important?
1. Gender diversity in boards Question: Why the gender diversity in boards is so important?
1.Gender diversity in boards Reason 1:Helps to mitigate the agency problem Shareholders← Board (Principal) (Agent) Agency problem Devices: (1)Fiduciary duty (2)Executive compensation
1. Gender diversity in boards Reason 1: Helps to mitigate the agency problem Shareholders (Principal) Board (Agent) Agency problem Devices: (1) Fiduciary duty (2) Executive compensation
1.Gender diversity in boards A.Women are less likely to have attendance problems B.Female directors are tougher monitors Fiduciary duty Shareholders Board (Principal) (Agent) Executive compensation Gender-diverse boards win more trusts from companies
1. Gender diversity in boards A. Women are less likely to have attendance problems B. Female directors are tougher monitors Fiduciary duty Executive compensation Gender-diverse boards win more trusts from companies Shareholders (Principal) Board (Agent)
1.Gender diversity in boards Reason 2:Improves the quality of decision-making (1)Increase a firm's innovation intensity (2)Improve a firm's ability to enter new markets Reason 3:Become an Incentive a signal of good corporate governance
(1) Increase a firm’s innovation intensity (2) Improve a firm’s ability to enter new markets Reason 2: Improves the quality of decision-making a signal of good corporate governance Reason 3: Become an Incentive 1. Gender diversity in boards
2.Gender quota in boards (1)Mandatory gender quota in Norway's corporation All listed companies must abide by a 40%gender quota for female directors or face dissolution
All listed companies must abide by a 40% gender quota for female directors or face dissolution. 2. Gender quota in boards (1) Mandatory gender quota in Norway’s corporation
2.Gender quota in boards Question: Did this mandatory gender quota have effects on corporate performance?
2. Gender quota in boards Question: Did this mandatory gender quota have effects on corporate performance?
2.Gender quota in boards A.Most financial data Revenues Non-labor costs Were similar between firms Mergers and acquisitions affected and unaffected by Initiations of joint ventures the gender quota
Were similar between firms affected and unaffected by the gender quota Revenues Non-labor costs Mergers and acquisitions Initiations of joint ventures 2. Gender quota in boards A. Most financial data