Finance Faculty Publications and Presentations

Board Gender Diversity and Workplace Safety: Evidence From Quasi-Natural Experiments

Document Type

Article

Publication Date

9-29-2024

Abstract

Research Questions/Issue

This paper examines the impact of board gender diversity on workplace safety in an international setting from 2002 to 2019. Utilizing gender quotas on corporate boards as a quasi-natural experiment, we explore the causal effects of gender diversity on workplace safety, highlighting the significant influence of corporate board gender quotas on corporate policies.

Research Findings/Results

Using a sample of 13,124 firm-year observations from 48 countries, our findings reveal that gender quotas on corporate boards are linked to higher rates of work-related injuries. The association is particularly strong in financially constrained firms, as well as in those with high workloads and low investments in workplace safety. In contrast, this effect is mitigated in firms located in countries with strong institutional frameworks and high union representation. The results hold across various regression specifications and remain robust when considering different measures of workplace injuries, board gender diversity, and additional control variables.

Theoretical Implications

Our study draws on gender behavior theory, social role theory, and gender socialization theory, with findings particularly aligning with gender behavior theory. It advances understanding of how changes in corporate governance structures related to board diversity influence workplace safety. This research underscores the importance of further empirical work to expand this area of study, suggesting valuable directions for future research through cross-sectional and longitudinal analyses.

Practical Implications

The findings provide critical insights for policymakers considering the implementation of gender quotas in boardrooms. Additionally, this research highlights the need for further exploration of unexamined aspects within governance studies, which will significantly influence future policy debates, legislative processes, and corporate practices in promoting gender diversity and enhancing workplace safety.

Comments

© 2024 John Wiley & Sons Ltd.

https://onlinelibrary.wiley.com/share/IVFWGVYRHS2SFNJDIRUV?target=10.1111/corg.12617

Publication Title

Corporate Governance: An International Review Corporate Governance: An International Review

Link to Full Text

Share

COinS