Directors' Assessment of Changes in Board Key Functioning and Dynamics in the Wake of Gender Quota

This paper utilizes resource dependency, agency, and status expectations theory lenses to explore how increased gender diversity on corporate boards, due to gender quota legislation, affected the post-quota perceptions of active board directors regarding board key functioning and board dynamics. Results show, that the initial attitude towards gender quotas was more negative among male directors than female directors but became more similar and positive over time. Strongest support is found for increased female board participation leading to stronger decision making and discussion of different perspectives around the board table according to directors, in addition to more effective monitoring. Participants further remark that visual female participation on the board has led to more positive company image in the eyes of various stakeholders and improved corporate culture. Consistent with status expectation theory, male directors are more negative than their female counterparts about the short-term effects of increased female participation on board dynamics.