What determines the presence of women on corporate boards? Empirical evidence from emerging markets

Abstract

Purpose This study aims to understand what drives firms towards board gender diversity in emerging markets. The authors examine the effect of regulative, normative and cognitive pressures on board gender diversity and the moderating effect of national governance quality. Design/methodology/approach This study tested the hypotheses using unbalanced panel data for the period between 2014 and 2019, which includes 1,384 observations of 380 different firms located in emerging markets. Findings The results reveal that board gender diversity is directly conditioned by normative pressures (women’s economic and educational empowerment). This relationship becomes stronger if firms are located in countries with high governance capacity. Interestingly, this study finds that regulative and cognitive pressures do not enhance women’s presence on boards if they are not accompanied by strong national governance. Originality/value Although we have learned in recent years about how women’s presence on boards brings positive corporate outcomes, we know little about how country-level antecedents foster or hinder this gender diversity. This paper expands knowledge of the way gender-related institutions affect a firm’s board gender diversity, and these findings have policy implications for firms, policymakers, the government and other institutions.