Disentangling discrimination on spanish boards of directors

Abstract

Manuscript Type: Empirical Research Question/Issue: This study seeks to find evidence of discrimination behind the scarce presence women on Spanish boards of directors through factors within firms linked with different theories of discrimination. Research findings/Insights: Using data on the boards of directors from the top 1000 Spanish companies in 2005 and 2008, we identify some signals of discrimination. We find that women directors are scarcer in those sectors where there are less female managers or where the directors are mainly draw on the firm’s executive staff. There is also evidence of the dynamics of Becker’s theory of discrimination, since time and competition are determinants of the women’s presence on Spanish boards. We also find a positive relationship between the number of women already on the board and the likelihood of adding a woman. This could signal some kind of underestimation of women’s skills and preconceptions about their attitudes (such as risk-aversion). Theoretical/Academic Implications: This study provides empirical support for the prediction of Becker’s theory of discrimination. The study also furnishes evidence of false preconceptions concerning the skills and risk attitudes of female managers. Practitioner/Policy Implications: Education and mentoring initiatives to improve the training of the female candidates helps to reduce discrimination before reaching the board, as well as better work- and family-life balance. Once they are in the pool of candidates, transparency and objectivity in selection procedures and/or even the establishment of a women’s quota on boards may contribute to dismiss employers’ negative beliefs about their capabilities in the long run. Key words: Corporate Governance; Board of Directors; Gender Discrimination; Glass Ceiling. Classification JEL: G34, J16, M14, C35.