Can Shareholder Activism Improve Gender Diversity on Corporate Boards?

Corporate Governance: An International Review

Volumn 24, Issue 4, 2016, Pages 443-461

  Marquardt, Carol ^a   Wiedman, Christine ^a  

^a NONE

Author keywords

Board Composition; Corporate Governance; Gender Diversity; Shareholder Activism

Indexed keywords

EID: 84978971117     PISSN: 09648410     EISSN: 14678683     Source Type: Journal    
DOI: 10.1111/corg.12170     Document Type: Article

References (57)

1. Abbott, L. J., Parker, S., & Presley, T. J. 2012. Female board presence and the likelihood of financial restatement, Accounting Horizons, 26: 607–29.
2. Adams, R. B., de Haan, J., Terjesen, S., & van Ees, H. 2015. Board diversity: Moving the field forward, Corporate Governance: An International Review, 23: 77–82.
3. Adams, R. B. & Ferreira, D. 2009. Women in the boardroom and their impact on governance and performance, Journal of Financial Economics, 94: 291–309.
4. Aguilera, R. V., Desender, K., Bedar, M. K., & Lee, J. H. 2015. Connecting the dots – Bringing external corporate governance to the corporate governance puzzle, The Academy of Management Annals, 9: 483–573.
5. Bear, S., Rahman, N., & Post, C. 2010. The impact of board diversity and gender composition on corporate social responsibility and firm reputation, Journal of Business Ethics, 97: 207–21.
6. Bebchuk, L. A. 2005. The case for increasing shareholder power, Harvard Law Review, 118: 833–917.
7. Bernardi, R. A., Bosco, S. M., & Columb, V. L. 2009. Does female representation on board of directors associate with the “Most Ethical Companies” list? Corporate Reputation Review, 12: 270–80.
8. Carelton, W. T., Nelson, J. M., & Weisbach, M. S. 1998. The influence of institutions on corporate governance through private negotiations: Evidence from TIAA-CREF, The Journal of Finance, 53: 1335–62.
9. Carter, D. A., D'Souza, F., Simkins, B. J., & Simpson, W. G. 2010. The gender and ethnic diversity of US boards and board committees and firm financial performance, Corporate Governance: An International Review, 18: 396–414.
10. Carter, D. A., Simkins, B. J., & Simpson, W. G. 2003. Corporate governance, board diversity, and firm value, The Financial Review, 38: 33–53.
11. Cohen, J., Pant, L., & Sharp, D. 1998. The effect of gender and academic discipline diversity on the ethical evaluations, ethical intentions, and ethical orientation of potential public accounting recruits, Accounting Horizons, 12: 250–70.
12. Cumming, D., Leung, T. Y., & Rui, O. 2015. Gender diversity and securities fraud, Academy of Management Journal, 58: 1572–93.
13. Cziraki, P., Renneboog, L., & Szilagyi, P. 2010. Shareholder activism through proxy proposals: The European perspective, European Financial Management, 16: 738–77.
14. Dalton, D. R., Daily, C. M., Ellstrand, A. E., & Johnson, J. L. 1998. Meta-analytic reviews of board composition, leadership structure, and financial performance, Strategic Management Journal, 19: 269–90.
15. Dalton, D. R., Hitt, M. A., Certo, S. T., & Dalton, C. M. 2007. The fundamental agency problem and its mitigation: Independence, equity, and the market for corporate control, The Academy of Management Annals, 1: 1–64.
16. David, P., Bloom, M., & Hillman, A. 2007. Investor activism, managerial responsiveness and corporate social performance, Strategic Management Journal, 28: 91–100.
17. DiMaggio, P. J. & Powell, W. W. 1983. The iron cage revisited: Institutional isomorphism and collective rationality in organizational fields, American Sociological Review, 48: 147–60.
18. Eisenhardt, K. M. 1989. Agency theory: An assessment and review, Academy of Management Review, 14: 57–74.
19. Ertimur, Y., Ferri, F., & Muslu, V. 2011. Shareholder activism and CEO pay, Review of Financial Studies, 23: 535–92.
20. Ertimur, Y., Ferri, F., & Stubben, S. 2010. Board of directors' responsiveness to shareholders: Evidence from shareholder proposals, Journal of Corporate Finance, 16: 53–72.
21. Ferreira, D. 2015. Board diversity: Should we trust research to inform policy? Corporate Governance: An International Review, 23: 108–11.
22. Ferri, F. 2012. ‘Low-cost’ shareholder activism: A review of the evidence. In Research handbook on the economics of corporate law. Cheltenham: Edward Elgar.
23. Gillan, S. L. & Starks, L. T. 2000. Corporate governance proposals and shareholder activism: The role of institutional investors, Journal of Financial Economics, 57: 275–305.
24. Gillan, S. L. & Starks, L. T. 2007. The evolution of shareholder activism in the United States, Journal of Applied Corporate Finance, 19: 55–73.
25. Goranova, M. & Ryan, L. V. 2014. Shareholder activism: A multidisciplinary review, Journal of Management, 40: 1230–68.
26. Gul, F. A., Srinidhi, B., & Ng, A. C. 2011. Does board gender diversity improve the informativeness of stock prices? Journal of Accounting and Economics, 51: 314–38.
27. Hillman, A. 2015. Board diversity: Beginning to unpeel the onion, Corporate Governance: An International Review, 23: 104–7.
28. Hillman, A. J., Shropshire, C., & Cannella, A. A. 2007. Organizational predictors of women on corporate boards, Academy of Management Journal, 50: 941–52.
29. Janis, I. 1972. Victims of groupthink: Psychological studies of foreign-policy decisions and fiascoes. Boston, MA: Houghton Mifflin.
30. Jensen, M. C. & Meckling, W. H. 1976. Theory of the firm: Managerial behavior, agency costs and ownership structure, Journal of Financial Economics, 3: 305–60.
31. Judge, W. Q., Gaur, A., & Muller-Kahle, M. I. 2010. Antecedents of shareholder activism in target firms: Evidence from a multi-county study, Corporate Governance: An International Review, 18: 258–773.
32. Judge, G. G., Griffiths, W. E., Hill, C. R., Lütkepohl, H., & Lee, T. 1985. Regression diagnostics. New York: Wiley.
33. Kang, H., Cheng, M., & Gray, S. J. 2007. Corporate governance and board composition: Diversity and independence of Australian boards, Corporate Governance: An International Review, 15: 194–207.
34. Karpoff, J. 2001. The impact of shareholder activism on target companies: A survey of empirical findings. University of Washington: Working Paper.
35. Karpoff, J., Malatesta, P., & Walkling, R. 1996. Corporate governance and shareholder initiatives: Empirical evidence, Journal of Financial Economics, 42: 365–95.
36. King, G. & Zeng, L. 2001. Logistic regression in rare events data, Political Analysis, 9: 137–63.
37. Klein, A. 2002. Audit committee, board of director characteristics, and earnings management, Journal of Accounting and Economics, 33: 375–400.
38. Landier, A. & Nair, W. B. 2009. Investing for change: Profit from responsible investment. Oxford: Oxford University Press.
39. Lee, C. & Farh, J. 2004. Joint effects of group efficacy and gender diversity on group cohesion and performance, Applied Psychology: An International Review, 53: 136–54.
40. Louche, C., Arenas, D., & van Cranenburgh, K. C. 2012. From preaching to investing: Attitudes of religious organizations towards responsible investment, Journal of Business Ethics, 110: 301–20.
41. Lynall, M. D., Golden, B. R., & Hillman, A. J. 2003. Board composition from adolescence to maturity: A multi-theoretic view, Academy of Management Review, 28: 416–31.
42. Milliken, F. & Martins, L. 1996. Searching for common threads: Understanding the multiple effects of diversity in organizational groups, Academy of Management Journal, 21: 402–33.
43. Payne, A. & Phillips, N. 2014. Handbook of international political economy of corporate governance. Cheltenham: Edward Elgar.
44. Reid, E. M. & Toffel, M. W. 2009. Responding to public and private politics: Corporate disclosure of climate change strategies, Strategic Management Journal, 30: 1157–78.
45. Renneboog, L. & Szilagyi, P. G. 2009. Shareholder activism through the proxy process. Tilburg University and the University of Cambridge: Working paper.
46. Schwartz-Ziv, M. 2016. Gender and board activeness: The role of a critical mass, Forthcoming inJournal of Financial and Quantitative Analysis doi: 10.2139/ssrn.1868033.
47. Scott, W. R. 2001. Institutions and organizations, 2nd edn. Thousand Oaks, CA: Sage.
48. Shivdasani, A. & Yermack, D. 1999. CEO involvement in the selection of new board members: An empirical analysis, The Journal of Finance, 54: 1829–53.
49. Sjostrom, E. 2008. Shareholder activism for corporate social responsibility: What do we know? Sustainable Development, 3: 141–54.
50. Sonnenfeld, J. A. 2002. What makes great boards great, Harvard Business Review, 80: 106–13.
51. Srinidhi, B., Gul, F. A., & Tsui, J. 2011. Female directors and earnings quality, Contemporary Accounting Research, 28: 1610–44.
52. Terjesen, S., Aguilera, R. V., & Lorenz, R. 2015. Legislating a woman's seat on the board: Institutional factors driving gender quotas for boards of directors, Journal of Business Ethics, 128: 233–51.
53. Thomas, R. S. & Cotter, J. F. 2007. Shareholder proposals in the new millennium: Shareholder support, board response and market reaction, Journal of Corporate Finance, 13: 368–91.
54. Tkac, P. 2006. One proxy at a time: Pursuing social change through shareholder proposals. In Economic Review, vol. 91: 1–20.
55. Weisbach, M. S. 1988. Outside directors and CEO turnover, Journal of Financial Economics, 20: 431–60.
56. Wu, Y. 2004. The impact of public opinion on board structure changes, director career progression, and CEO turnover: Evidence from CalPERS' corporate governance program, Journal of Corporate Finance, 10: 199–227.
57. Zhou, X. 2013. Investigating shareholder social activism from an issue-selling perspective – Issues, strategies, and success. Virginia Tech: Doctoral dissertation.