The Symbolic Management of Women on Company Boards: Evidence Using the UK Davies Review

Abstract

This paper tests for the presence of the symbolic management of women board directors. The data are based on companies in the UK FTSE All-Share Index between 1996 and 2017. Our sample experiences a sharp increase in the number of women board directors after a major reform in 2011, known as the Davies Review. While the Davies Review has triggered a rise in the number of women in non-executive director positions, these women continue to experience a disproportionate exit rate around 9 years of tenure. This is a symbolically significant moment because at 9 years directors are no longer considered ‘independent’ under the UK Governance Code. Notwithstanding the progress made following the Davies Review, the evidence presented here supports the view that women often serve on company boards for symbolic rather than substantive motives.