Towards board and executive gender diversity from an institutional and quota perspective: Evidence from European companies

Abstract

Gender quotas have emerged as key institutional mechanisms for promoting gender equality among corporate boards across Europe, yet their effectiveness remains uneven across national contexts. This study examines how institutional environments and quota legislation shape gender diversity in corporate governance. Using a sample of 2,406 listed companies from 33 European countries, the analysis combines linear regression models and nonparametric tests to assess the effects of national gender equality and quota regimes. The findings indicate that higher levels of gender equality and the presence of mandatory quota legislation are associated with significantly higher levels of board gender diversity and overall diversity performance. However, the results also reveal a more limited effect on executive management representation, suggesting that improvements at the board level do not automatically translate into broader gender equality within firms. Furthermore, only a minority of companies achieve gender-balanced boards, although this proportion is substantially higher in countries with binding quota systems. These findings highlight the importance of institutional complementarities and provide evidence that mandatory quota systems are more effective than recommended frameworks, while also underscoring the need for complementary organizational and policy measures to advance gender equality beyond the boardroom.