The Contribution of Women on Boards of Directors: Going beyond the Surface

• Published date: 01 March 2010
• Author: Morten Huse,Sabina Nielsen
• DOI: http://doi.org/10.1111/j.1467-8683.2010.00784.x
• Date: 01 March 2010

The Contribution of Women on Boards of

Directors: Going beyond the Surface

Sabina Nielsen* and Morten Huse

ABSTRACT

Manuscript Type: Empirical

Research Question/Issue: The increased attention to women on corporate boards presents new challenges to governance

research. In this paper we go beyond demography and open the “black box” of board behavior by drawing upon theories

of gender differences and group effectiveness.corg_784136..148

Research Findings/Insights: A unique survey of 201 Norwegian f‌irms is used. Thef‌indings suggest that the ratio of women

directors is positively associated with board strategic control. In addition, we f‌ind that the positive effects of women

directors on board effectiveness are mediated through increased board development activities and through decreased level

of conf‌lict. However, our results show no evidence for a positive association between women directors and open debate.

Nonetheless, open debate enhances board’s strategic and operational control.

Theoretical/Academic Implications: Recognizing the limitations of traditional governance theories to explain the role and

contributions of women on corporate boards, this paper draws upon group effectiveness and gender differences theories to

shed some light on whether and how women make a difference to board effectiveness in strategic and operational control.

Practitioner/Policy Implications: Women’s ability to make a contribution to the board may be attributable to their different

leadership styles. The presence of women on corporate boards seems to increase board effectiveness through reducing the

level of conf‌lict and ensuring high quality of board development activities.

Keywords: Corporate Governance, Women Directors, Gender Differences, Diversity, Board Processes

INTRODUCTION

The role of women in board positions is getting

increased attention (Daily, Certo, & Dalton, 2000; Terje-

sen, Sealy, & Singh, 2009; Vinnicombe, Singh, Burke, Bili-

moria, & Huse, 2008). Some countries (e.g., Norway) have

even introduced formal laws requiring female representa-

tion on corporate boards. However, research has failed to

establish a convincing case for the presence of women on

corporate boards of directors. As a result, more studies are

needed on the effects of women directors on board

decision-making and effectiveness.

Most previous research on women directors is of a

descriptive nature and focuses primarily on counting the

number of women on corporate boards and following the

development of female representation on boards over the

years (e.g., Brancatto & Patterson, 1999; Burke & Mattis,

2000; Conyon & Mallin, 1997; Daily, Certo, & Dalton, 1999).

More analytically oriented studies are mostly concerned

with the questions of why there are so few women on cor-

porate boards (Burke, 1997; Singh & Vinicombe, 2004) and

what the predictors for female representation on boards are

(Burke, 2000; Gregoric, Oxelheim, Randøy, & Thomsen,

2009; Hillman, Shropshire, & Cannella, 2007). Other studies,

primarily qualitative in nature, focus on women directors’

experiences and perceptions of their role as board members

(e.g., Bilimoria & Huse, 1997; Huse & Solberg, 2006). Few

quantitative studies explore in details the characteristics of

women directors compared to their male counterparts (e.g.,

Hillman, Cannella, & Harris, 2002; Ruigrok, Peck, &

Tacheva, 2007). Only two studies look at women’s actualrole

in corporate boards by investigating women’s committee

membership (Bilimoria and Piderit, 1994; Kesner, 1988). Yet,

the contribution that women make in the boardroom and

their inf‌luence on board decisions and processes remains

underresearched.

*Address for correspondence: Copenhagen Business School, Department of Interna-

tional Economics and Management, Porcelaenshaven 24a, 2000 Frederiksberg,

Denmark. Tel: 45-38152524, Fax:45-38152400; E-mail: sta.int@cbs.dk

Sabina Nielsen would like to acknowledge f‌inancial support from the Marie Curie

European Re-Integration Grant PERG-2008-239310. Morten Huse would like to thank

The Norwegian Research Council, Innovation Norway and other industry actors in

Norwaythat funded this project.

136

Corporate Governance: An International Review, 2010, 18(2): 136–148

© 2010 Blackwell Publishing Ltd

doi:10.1111/j.1467-8683.2010.00784.x