Gender Penalty in Board Appointments

[roo_ster]

Ouch.

Women Don't Mean Business? Gender Penalty in Board Appointments

Abstract:     
This paper examines the relationship between board diversity and firm performance. Using 14 years of panel data on U.S. firms, we show that increasing gender diversity has no impact on objective measures of firm performance, but does result in a systematic decrease in the firm’s market value. We explain this finding by suggesting that the decision to appoint female directors will alter the market’s perception of the appointing firm. In a second panel study, we show that firms perceived to be committed to diversity similarly suffer a decrease in firm value. Finally, we show through an experiment that female board appointments are taken as a signal that the firm is motivated by social performance goals, to the detriment of pure profit maximization. Collectively, these three studies suggest that female board appointments are viewed as diversity measures, and as a signal of a broader commitment of the firm to social welfare goals, as opposed to strict shareholder value maximization. This mechanism, we argue, operates irrespective of the actual or perceived competence of the female nominee. We discuss the implications of our findings for future research on board diversity and firm performance.

Maybe the firms can advertise that the diversity hire is just a token and they are just doing it to keep the diverstapo off their case?

"My profits matter!"

[vaskidmark]

No mention of the difference between the sexes in advancing ideas, resolving conflict, or exerting authority?

Always though that was part of the vive that made la difference.

stay safe.

[SADShooter]

No mention of the difference between the sexes in advancing ideas, resolving conflict, or exerting authority?

Always though that was part of the vive that made la difference.

stay safe.

Thanks for the Adam's Rib allusion, intended or not. An all-time favorite.

Seriously, if we can't agree on the notion that gender differentiation should be complementary, rather than adversarial or eliminated, our civilization is in grave danger.

[230RN]

No mention of the difference between the sexes in advancing ideas, resolving conflict, or exerting authority?

Always though that was part of the vive that made la difference.

stay safe.

From the "Consecration of the wine" in the pagan ritual, as the Priestess plunges her Athame into the Chalice full of wine (or the Sacred Beverage):

For the man is not greater than the woman, nor the woman greater than the man, but when conjoined, great magic will occur.

Wisdom, there.

I'm not signing this one so nobody will know who posted it.

[vaskidmark]

Thanks for the Adam's Rib allusion, intended or not. An all-time favorite.

Seriously, if we can't agree on the notion that gender differentiation should be complementary, rather than adversarial or eliminated, our civilization is in grave danger.

Agreed.  Complimentary.  But there are few BoD activities that lend themselves to the female style of problem solving, except in an advisory capacity.  IMHO it is much more suited to the management/supervisory levels.

And you were referring to the 1949 remake with Tracey and Hepburn, right?  Not the DeMille 1923 version http://moviessilently.com/2014/02/02/adams-rib-1923-a-silent-film-review/ .

stay safe.

[SADShooter]

Agreed.  Complimentary.  But there are few BoD activities that lend themselves to the female style of problem solving, except in an advisory capacity.  IMHO it is much more suited to the management/supervisory levels.

And you were referring to the 1949 remake with Tracey and Hepburn, right?  Not the DeMille 1923 version http://moviessilently.com/2014/02/02/adams-rib-1923-a-silent-film-review/ .

stay safe.

I was, being unaware of the original production. Thanks. I'll check it out, though the Tracy/Hepburn screen chemistry was magic potent enough to elevate even mediocre material.

I also concur with your assessment. Again, the decision-making and leadership traits can be employed well in concert rather than isolation/exclusion.

[vaskidmark]

Just be sure you've got a Wurlitzer Theater Organ.

stay safe.