Men’s Intuition? Female Directors And Why Selection Matters

Abstract

Are female directors different than male directors? Well, not as one might think. We argue the answer depends on factors driving director selection and self-selection. Using the World Value Survey and an international sample of roughly 1,000 directors, we document the relevance of complex selection processes. We then examine how directors’ shareholderism, their stances towards shareholders and stakeholders, varies with different director selection mechanisms. On average female directors are more shareholder-oriented than male directors, but primarily with regard to contractual stakeholders. Board diversity policies weaken this relationship, but do not overturn it.