Gender board diversity through ownership networks

Gender board diversity through ownership networks

Work in progress has been presented during an internal seminar meeting. We had a very fruitful discussion with a lot of ideas for improving current research and future directions.

Understanding the spillover channels of gender board diversity is important for policy makers. We measure them in a new medium  - ownership networks. Furthermore, we ask if differences cultural norms of parents and subsidiary companies matter for those spillovers? For this occasion we have crafted novel data about corporate Europe. We merged data on ownership networks with data on gender board diversities working with roughly 2.5 million firms in circa 2.3 million ownership links, measured over more than a decade. We find that there are robust spillovers from diverse parents to subsidiaries. However, we also find evidence for a negative effect of environment differences. The higher the difference between parent and subsidiary average diversity of country - industry - year environments, the lower the spillovers.