Lu, Zhaoying (2024) Evolution of board diversity: examining the impact of early-generation female directors on the path to gender inclusivity and corporate performance. University of Southampton, Doctoral Thesis, 268pp.
Abstract
This research examined the evolution of board gender diversity by focusing on the influence of early-generation female directors on gender inclusivity and corporate performance within Chinese listed companies from 1990 to 2019. A key objective was to explore the role of these early female directors as pioneers and role models, emphasizing their impact in breaking barriers and fostering future diversity. These directors not only acted as trailblazers in a male-dominated environment but also served as powerful examples inspiring subsequent female participation, thereby enhancing inclusivity.
The study investigated the unique barriers faced by female directors in reaching top leadership positions, considering both cultural and structural challenges. It also evaluated the influence of these early female appointments on subsequent board dynamics and the role of women's networks in fostering board gender diversity and supporting career development of women in the corporate world. The impact of board gender diversity on organizational outcomes, such as financial performance and gender pay equity, is analyzed using quantitative firm metrics and qualitative insights into board-level gender dynamics. This integrated perspective provides a nuanced understanding of how gender diversity affects corporate governance and performance China’s distinct cultural and regulatory environment.
The first phase of the study utilized quantitative methodologies to explore the relationship between representation of female directors on boards and organizational performance. Results indicate that, although female executive directors comprise only 2% of board members, their presence significantly contributes to improved organizational outcomes, as measured by return on assets. Additionally, their presence is associated with promoting gender equity and by reduced gender pay gap. This underscores the importance of focusing on the quality of gender diversity, rather than simply increasing numeric representation. The analysis further reveals that the appointment of the first female director has a positive influence on subsequent female participation on boards, thereby promoting a more inclusive culture rather than leading to tokenism.
The second phase of the study adopts qualitative methodologies, involving in-depth interviews with female directors across various industries. The findings indicate that the 'Queen Bee Phenomenon' (Staines et al., 1974)—where women in leadership roles are believed to hinder the progress of other women—is uncommon among Chinese female board members and does not significantly impede their career progression. Instead, the evidence points to a supportive and collaborative boardroom environment. This challenges prior empirical assertions and offers new insights into the dynamics of gender diversity in corporate governance. The study also uncovers mechanisms through which female directors serve as role models, further enhancing gender inclusivity and fostering women’s career advancement.
By utilizing both quantitative and qualitative methodologies, this research explored the impact of early female director on subsequent female participation and evaluates the prevalence and implications ofthe Queen Bee Phenomenon at the board level. The findings emphasize the role of early-generation female directors as catalysts for increased female participation in leadership positions, challenging stereotypes about female competitiveness and offering new insights into the gender diversity dynamics in corporate governance.
Theoretical frameworks such as agency theory (Jensen & Meckling, 1976), resource dependence theory (Pfeffer & Salancik, 1978), stakeholder theory (Freeman, 1984), social identity theory (Tajfel,1974), and network theory (Burt, 2000) are integrated to examine the implications of gender diversity on board effectiveness, firm performance, and the broader socio-economic context. Specifically, agency theory is extended by highlighting the enhanced monitoring capabilities that female executive directors bring to corporate governance. Resource dependence theory is applied to demonstrate how women contribute unique external linkages and expertise, while social identity theory helps explain the supportive networks among female directors. Furthermore, this study refines critical mass theory (Kanter, 1977) by suggesting that female representation in executive roles has a more profound impact on firm performance than sheer numbers. These contributions underscore the significance of fostering a more inclusive corporate governance framework, highlighting the interplay between cultural, institutional, and organizational factors in shaping the landscape of gender diversity on corporate boards in China. In terms of management implications, the study challenges the Queen Bee phenomenon by demonstrating supportive relationships among female directors and underscores the role of networks, mentorship, and role models in advancing women's careers. These insights offer valuable recommendations for policymakers, business leaders, and future research, ultimately addressing the objective of understanding the impact of early female directors as pioneers in fostering gender diversity and improving corporate performance. The study advocates for targeted initiatives that dismantle structural and societal barriers to women's effectiveness and access to leadership roles on corporate boards.
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