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Diversity through Turnover: How to Overcome the Glacial Pace toward Board Diversity?

Wei Jiang

Journal of Law, Finance, and Accounting2023https://doi.org/10.1561/108.00000062article
AJG 2
Weight
0.52

What the paper says

Based on a comprehensive database of corporate board directors, this study provides an overview of recent developments in the gender diversity of US corporate boards. Prior to 2009, women made up about 8% of the directors of US corporate boards. As of 2019, that proportion has since risen to 18% among public firms, while private firms have not witnessed notable improvement. This study highlights the general lack of board turnover—that is, board inertia resulting in incumbents enjoying long tenure—as a key factor in the slow adjustment. Proxy contests resulting from shareholder activism increase the odds that the boards will gain female directors by 32%, despite activist directors themselves being no more gender-diverse compared to new directors added in the absence of contests. This is because firms targeted by proxy contests double board turnover rates, allowing them to tap into a fresh pool of director candidates which is significantly more diverse than the incumbents.

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https://doi.org/https://doi.org/10.1561/108.00000062

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@article{wei2023,
  title        = {{Diversity through Turnover: How to Overcome the Glacial Pace toward Board Diversity?}},
  author       = {Wei Jiang},
  journal      = {Journal of Law, Finance, and Accounting},
  year         = {2023},
  doi          = {https://doi.org/https://doi.org/10.1561/108.00000062},
}

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Evidence weight

0.52

Balanced mode · F 0.40 / M 0.15 / V 0.05 / R 0.40

F · citation impact0.43 × 0.4 = 0.17
M · momentum0.80 × 0.15 = 0.12
V · venue signal0.50 × 0.05 = 0.03
R · text relevance †0.50 × 0.4 = 0.20

† Text relevance is estimated at 0.50 on the detail page — for your query’s actual relevance score, open this paper from a search result.