Drawing on the similarity-attraction perspective and social identity theory, we argue that male versus female interlocking directors are likely to have different experiences when they work alongside female board directors of other firms. The theorized source of such experiences for male interlocking directors is in-group favoritism and/or a social identity threat-related discomfort. Interlocking female directors are theorized to be ambivalent between desiring social support versus experiencing identity threat-based career concerns. These experiences are predicted to motivate male versus female interlocking directors (...) in different ways to reduce or, conversely, to potentially facilitate female representation on focal boards. We additionally predict that economic crisis reduces the biases of male directors against appointing female directors to boards. We test our hypotheses based on a novel data set that includes 25,460 directors in Chinese A-share public companies with a sample of 27,058 firm-quarter observations for 1635 firms between 2006 and 2010 and find most of our hypotheses supported. (shrink)

In recent years, the US and the EU have pursued markedly different agendas in the pursuit of board gender diversity. The EU has taken a more pro-active governmental approach of mandated quotas, whereas the US is relying largely on the endogenous mechanism of shareholder diversity proposals. Despite their obvious allure as a means of bringing about rapid change, evidence is mounting that board gender diversity quotas may yield various deleterious side effects; and quotas may not be as successful in their (...) core aim of promoting gender diversity as initial broad statistical measures indicate. In this paper we critique the expanding EU quota regime, and consider US shareholder proposals as an alternative change mechanism for improving gender diversity in corporate boards. As an alternative to quotas, diversity resolutions are often dismissed as ineffective because the vast majority fail to formally pass (with a failure rate close to 95%). However, on closer inspection, this ‘failure’ actually results in success. Contrary to the conventional ‘folk’ wisdom -- in the quest to promote gender diversity on corporate boards, the endogenous (US) mechanism of board diversity proposals has, to date, resulted in similar increases in gender diversity as the exogenous (EU) mechanism of government-mandated gender quotas. Furthermore, the former mechanism is more consistent with recent ‘third-wave’ feminist theory. We conclude with the policy recommendation that, rather than quotas, the EU should focus on removing the regulatory barriers that inhibit shareholder democracy. (shrink)