Gender diversity on boards: determinants that underlie the proposals for female directors

Abstract

Although the gender composition of corporate boards and the contribution of female directors to corporate governance have been previously analysed, few studies have investigated the factors that may help contribute to increasing the still scarce presence of women on boards. Therefore, using three-stage least squares (3SLS) estimation on a data panel comprising the 100 largest companies in the world according to the 2019 Fortune Global 500 ranking, including data on (re)election proposals for corporate board members, this research aims to analyse the influence of the number of men's nominations, board interlocks, director tenure, geographical area, the sector to which the firms belong, and the relevance of firms on women's nominations for boards of directors. The results show the factors that facilitate the presence of women on boards. In addition, the different influences that remain in the election of female and male directors when considering factors related to the experience, expertise, and networks of directors or the visibility of firms can also be observed. This study contributes to the knowledge of gender diversity on boards, shedding light on the factors that might lead to gender-balanced boards. It could also help companies and policymakers design strategies to build more egalitarian boards