Chairman’s Perception of Board Work Upon Female Board Representation: : A Study on Nordic Listed Companies

Abstract

In this study we consider the consequences of female board representation on board work in listed firms in the five Nordic countries. Using survey data provided by company chairmen, we contribute to the literature on gender diversity in boards by providing an insider perspective. Survey data reveals that chairmen, the operative syllable being "men," are significantly less satisfied with female board members when asked to rate various groups of board members. Controlling for a number of factors, gender diversity is not perceived to provide a positive contribution to board work. However, concluding that homogeneous groups would work better when risk is high is not warranted, as data reveals evidence that gender diversity produces positive results in high-risk firms. Furthermore, the results indicate that when a company has a nomination committee, the likelihood that the company will have a gender diverse board increases dramatically