Working Paper: CEPR ID: DP14503
Authors: Mariassunta Giannetti; Tracy Yue Wang
Abstract: We explore whether demand factors contribute to low female board participation. We use time-varying public attention to gender equality as a shock that differentially affects the demand for female directors of firms with different ex ante culture towards gender equality. We find that public attention is associated with an increase in female board representation, especially in firms whose ex ante culture is more sympathetic to gender equality. Furthermore, public attention to gender equality changes the way female directors are recruited. First, the pool of female directors broadens without any obvious compromises on quality. Second, public attention to gender equality reduces the probability that connected men are appointed, leading to higher female board representation.
Keywords: boards; gender; public attention; networks; connections; homophily; corporate culture
JEL Codes: G3; M5; D22
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Public attention to gender equality (J16) | Female board representation (G34) |
| Public attention to gender equality (J16) | Demand for female directors (J21) |
| Female board representation (G34) | Recruitment pool for female directors (J21) |
| Public attention to gender equality (J16) | Likelihood of appointing connected men (D73) |