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Abstract This study explores the relationship between new female director appointments and managerial ability for a sample of 18,216 US firm-year observations representing 1,885 distinct publicly traded firms. Using a two-stage instrumental variable, we find that new female director appointments are associated with a decrease in managerial ability. This effect is robust to alternative measures, endogeneity corrections, and matched sample approaches.
We examine the impact of social capital on board gender diversity among U.S. firms. We test whether trust and social networks in a county lead to an increase in female board representation. We find that firms headquartered in high-social-capital counties have higher diversity in their corporate board. Economically, we estimate that a 1 standard deviation (SD) increase in social capital leads to a 0.042 SD increase in board gender diversity.
As a journalist, you can create a free Muck Rack account to customize your profile, list your contact preferences, and upload a portfolio of your best work.