Gender Quota on Boards in the Face of Patriarchy
Meeting No: 2519 622 0985
We study the introduction of gender quotas in India, the first country with strong patriarchal views to mandate female directors on corporate boards. Despite small penalties, we find high compliance rates, resulting in a threefold expansion of the female director labor pool. After the reform, almost half of the firms appoint and retain female directors beyond the ambit of the quota, a change that is significantly weaker on boards with stronger patriarchal views. The better opportunities for females manifest in a higher likelihood of appointment on important subcommittees and in a reduction in the gender gap in director remuneration from 30% to 3%. Our results suggest that although gender quotas deepen and diversify the director pool, strong patriarchal views among incumbent directors hinder the transition to gender-diverse boards.
About the Speaker
Joining LBS after completing a PhD in Finance at the Hong Kong University of Science and Technology, Dr Naaraayanan’s research interests lie in the area of empirical corporate finance – including corporate governance, entrepreneurship, financial intermediation, and law and finance. His research has won several awards including the USC Marshall School of Business Trefftzs Award at the Western Finance Association Meetings. His work has been featuring in numerous publications such as the Financial Express, Forbes, Oxford Business and Law, and the World Bank.