Chairmen's perceptions of female board representation: a study on Nordic listed companies

• Date: 12 August 2014
• Published date: 12 August 2014
• DOI: https://doi.org/10.1108/EDI-11-2012-0107
• Pages: 523-534
• Author: Tor Brunzell,Eva Liljeblom
• Subject Matter: HR & organizational behaviour,Employment law,Diversity, equality, inclusion

Chairmen’s perceptions of female

board representation: a study

on Nordic listed companies

Tor Brunzell

Stockholm Business School, Stockholm University, Stockholm, Sweden, and

Eva Liljeblom

Hanken School of Economics, Helsinki, Finland

Abstract

Purpose – The purpose of this paper is to survey chairmen’s perceptions of female board

representation in five Nordic countries, focussing on whether the chairman’s perception of board work

is related to gender diversity, and on differences between high- and low-risk firms.

Design/methodology/approach – The authors combine data from a questionnaire directed to the

chairmen of the boards in Nordic listed companies with data on firm characteristics and board composition.

Findings – The authors find that the chairmen (97.5 percent male) are significantly less satisfied with

female board members as compared to male ones. The authors also find that firms with nomination

committees have more gender diverse boards, as well as indications of a more positively perceived

contribution of female representation in high-risk firms.

Research limitations/implications – The study is restricted to perceptions of chairmen for listed

Nordic firms. The low response rate of 20.1 percent is a severe limitation.

Practical implications – The increasing practice of using nomination committees in the Nordic

countries seems advantageous from gender balance perspective.

Originality/value – The authorscontribute to the literatureon gender diversity in boards byproviding

results from a board intern perspective.

Keywords Diversity, Board of directors, Board effectiveness, Gender minority

Paper type Research p aper

1. Introduction

Gender representation on the boards of listed companies is topical in the media and the

academic press. Gender diversity is also an important issue in corporate governance.

Empirical studies have looked at the effects of gender diversity on firm performance

(Carter et al., 2003; Rose, 2007), or on quantitative measures for board work (Adams

and Ferreira, 2009). Theoretical explanations for why women would have an effect on

board work are less often tested. Nielsen and Huse (2010b) argue that traditional

theories on boards do not provide much insight as to how women would contribute

to board effectiveness.

Instead of studying effects of gender diversity on firm performance, or on measures

for board work, we study, like Nielsen and Huse (2010a, b), perceptions of board work.

However, we study perceptions of the chairman rather than the CEO. In Nordic listed

firms, the CEO is increasingly less often part of the board, while the chairman has

a leading role regarding how the board works, and may influence board appointments.

The current issue and full text archive of this journal is available at

www.emeraldinsight.com/2040-7149.htm

Received 27 November 2012

Revised 1 September 2013

26 November 2013

18 March 2014

Accepted 26 June 2014

Equality, Diversityand Inclusion:

An International Journal

Vol.33 No.6, 2014

pp. 523-534

rEmeraldGroup Publishing Limited

2040-7149

DOI 10.1108/E DI-11-2012-0107

The authors thank Nils Liljendahl, Kirsi Noro, Magnus Blomkvist, and Anna Bjo

¨rn for research

assistance. Financial support from NASDAQ OMX Nordic Foundation and Academy of Finland

is gratefully acknowledged.

523

A study on

Nordic listed

companies