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How do female directors improve board governance? A mechanism based on norm changes
Srinidhi, Bin1; Sun, Ye2; Zhang, Hao3; Chen, Shiqiang3
2020-04-01
Source PublicationJournal of Contemporary Accounting & Economics
ABS Journal Level2
ISSN1815-5669
Volume16Issue:1Pages:100181
Abstract

Prior literature documents that corporate boards with female directors produce better governance outcomes than all-male boards. However, female directors constitute the minority on most boards, which precludes majority voting as the mechanism through which they change board decisions. We identify changing the norms of how the board works as this mechanism. Using the market for norms framework, we explain how female directors are effective even without possessing a board majority or other sources of symbolic power, such as hierarchical authority and social gravitas. Empirically, we show that independent female directors, compared to their male counterparts, are more effective at changing board norms (board processes) and improving governance (board outputs).

KeywordBoard Gender Diversity Board Outcomes Governance Market For Norms Norm Change
DOI10.1016/j.jcae.2019.100181
URLView the original
Indexed BySSCI
Language英語English
WOS Research AreaBusiness & Economics
WOS SubjectBusiness, Finance ; Economics
WOS IDWOS:000525251300004
PublisherELSEVIER SCI LTDTHE BOULEVARD, LANGFORD LANE, KIDLINGTON, OXFORD OX5 1GB, OXON, ENGLAND
Scopus ID2-s2.0-85077657633
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Document TypeJournal article
CollectionFaculty of Business Administration
DEPARTMENT OF ACCOUNTING AND INFORMATION MANAGEMENT
Corresponding AuthorZhang, Hao
Affiliation1.Department of Accounting, University of Texas at Arlington, United States
2.Shenzhen Stock Exchange Research Institute, Shenzhen, China
3.Department of Accounting and Information Management, University of Macau, Macau, China
Corresponding Author AffilicationUniversity of Macau
Recommended Citation
GB/T 7714
Srinidhi, Bin,Sun, Ye,Zhang, Hao,et al. How do female directors improve board governance? A mechanism based on norm changes[J]. Journal of Contemporary Accounting & Economics, 2020, 16(1), 100181.
APA Srinidhi, Bin., Sun, Ye., Zhang, Hao., & Chen, Shiqiang (2020). How do female directors improve board governance? A mechanism based on norm changes. Journal of Contemporary Accounting & Economics, 16(1), 100181.
MLA Srinidhi, Bin,et al."How do female directors improve board governance? A mechanism based on norm changes".Journal of Contemporary Accounting & Economics 16.1(2020):100181.
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