Women on boards and monitoring tasks: an empirical application of Kanter's theory

Abstract

Purpose: This paper examines the relationship between women on boards and board monitoring tasks depending on group categories identified in the Kanter's theory. Design/methodology/approach: Using a sample of the largest listed companies in Spain, Italy and France during the period 2007–2017, this study tests the effect of women's presence based on the following board categories: (1) skewed boards with a percentage of women that is less than 20%; (2) tilted boards with a percentage of women that ranges from 20% to 33%; (3) tilted boards with a percentage of women that is more than 33%; and (4) balanced boards with an equal or quasi-equal gender distribution. The authors use the case of the gender board quota regulation in different European Union countries. Findings: The results suggest that tilted boards engage in stronger firm monitoring and that the effect of women on board monitoring tasks is positive and statistically significant when the percentage of female directors reaches the threshold of 33%. Practical implications: The outcomes of this study help policymakers identify the minimum threshold that quota regulations should mandate in order for boards to be effective. Originality/value: This paper moves forward the ongoing debate about the effect of women on corporate boards, shifting the focus from the ratio or presence of female directors to the size of the group they form within the board. To the best of authors’ knowledge, this is the first study to test Kanter's theory by investigating the relationship between women on boards and board monitoring.