Literature Review Women on boards and in TMTS and firm performance22 perspectives and experience Resource dependence theory suggests that large firms experience increased pressure for legitimacy Hillman et al 2007 In accordance with theory firm size appears to be highly relevant the relation to the women s ratio on boards is positive Adams Ferreira 2004 Carter et al 2003 Hillman et al 2007 Hillman et al 2007 further provide evi dence for a positive relationship between a firm s number of female employees and female repre sentation on boards The share of female emplo yees varies between industries The industry the company is operating thus partly determines the probability of having women on the board Indus try sectors are associated with gender based con notations due to overrepresentation of one sex in its labor force Hillman et al 2007 respectively in its customer group Harrigan 1981 Construction engineering manufacturing or automotive sectors could thus be considered as typically male and branches such as media health insurance retail trade or services regarded as typically female Indeed board composition varies systematically across industries and companies with a high share of women in their workforce tend to have more women on boards Moreover close proximity to the customer appe ars to be an industry characteristic associated with a higher share of women on board Brammer et al s 2007 results suggest that the latter factor is of higher importance for shaping board diversi ty They argue that the company specific business environment influences board diversity Moreover board diversity is particularly an imperative to reflect corresponding diversity among its custo mers Brammer et al 2007 Heffernan 2002 Accordingly Brammer et al 2007 report highest female representation on UK boards for the sectors banking and retailing with relatively high rates of female employment and a high degree of custo mer proximity and lowest for the industry sectors resources and engineering with a relatively low rate of female employment and distance from fi nal consumers Hillman et al 2007 prove these relationships for the health and financial sector Brammer et al 2009 for consumer services and knowledge based areas In Carter et al s 2003 sample firms from the financial services industry have the highest share with three or more wo men on the board of directors and only 23 percent have no women on board By contrast 44 percent of firms from the mining and construction sector have no women on board and no company from this industry has more than two women on its board Holst and Kirsch 2014 point out that the three German companies financial sector exclu ded with the highest share of women on board as of year end 2013 belong to the cosmetics and fragrances industry Douglas 56 percent women on board travel industry TUI 50 percent and pharmaceuticals wholesale Noweda 44 percent Furthermore firm risk is the most robust and im portant determinant of the share of women on corporate boards Adams Ferreira 2009 Board size is also positively related to the presence of women on corporate boards firms with two or more female directors have larger boards Carter et al 2003 Furthermore firms with two or more female board members hold a larger number of board meetings and have a higher share of mino rity directors than those with no women on board Carter et al 2003 Eventually though when striving to obtain leader ship commitment increasing female representa tion on corporate boards should yield persuasive advantages from an economical perspective Re turning to Robinson and Dechant s 1997 call for a solid business case for diversity evidence for Women on boards and in TMTs and firm performance

Vorschau DIRK-Forschungsreihe Band 21 Workforce diversity and personal policies Seite 22
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