Transnational Shareholder and Stakeholder Pressure and Female Board Appointments

• In-person event
• 6010, Nicol, Carleton University
• 1125 Colonel By Drive, Ottawa, ON, K1S 5B6

• Contact
• Megan Moran, megan.moran@carleton.ca

A catered lunch will be available from 11:30 AM

Abstract

This study draws on insights from international business literature to advance research on women on corporate boards (WOCB). We propose that shareholders’ pressure to enhance board effectiveness and the pressure to attain legitimacy from stakeholders have differential effects on female board appointments owing to varying extents of tokenism in firms’ responses to these pressures. Our analysis focuses on Japanese firms using the traditional “company with corporate auditors” board structure, where corporate auditors typically wield less influence than directors in critical strategic and governance decisions. We find that transnational shareholder pressure more strongly influences the appointment of women as directors than as corporate auditors. Conversely, transnational stakeholder pressure affects the appointment of women as corporate auditors more than as directors. Furthermore, as the existing level of WOCB increases, the effect of transnational stakeholder pressure diminishes, while the impact of transnational shareholder pressure on the appointment of female directors remains unaffected. These findings highlight the significant role of transnational pressures in influencing board gender diversity and the importance of considering the differences between corporate constituents in understanding firms’ propensity to engage in symbolic management.