The Effect of Board Quotas on Female Director Turnover

Finance

Speaker:Daniel Ferreira, London School of Economics
Date: Tuesday 11 October 2016
Time: 1.45 pm
Location: Constantine Leventis Teaching Room, Building: one

Further details

The annual rate of turnover of female directors falls by about 3 to 5 percentage points following the introduction of board gender quotas in France in 2011. This decline in turnover is more pronounced for quota-induced new appointments, especially in boards that regularly hire directors who are members of the French business elite. Despite such a decline in average turnover rates, in the post-quota period female directors become more likely to leave poorly-performing and volatile firms. By contrast, the quota has no effect on male director turnover. The evidence suggests that the French quota has improved the quality of director-firm matching.