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01-06-2015

Women on the Board and Managers’ Pay: Evidence from Spain

Authors: Maria Encarnación Lucas-Pérez, Antonio Mínguez-Vera, Juan Samuel Baixauli-Soler, Juan Francisco Martín-Ugedo, Gregorio Sánchez-Marín

Published in: Journal of Business Ethics | Issue 2/2015

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Abstract

The current literature shows great interest in the issue of gender diversity on boards of directors. Some studies have hypothesized a direct relationship between diversity and the value of the firm, but not many examine the intermediate mechanisms that may exert an influence on such relationships. We employ two stages of GMM estimation methodology to exhibit evidences of the relationship between gender diversity and compensation of top managers in the Spanish context. Results show that gender diversity positively affects the effectiveness of boards—in terms of composition, structure, size and functioning—influencing a proper design of top managers compensation linked to company performance. Evidences suggest that legislative actions aimed at increasing the presence of women on boards of directors are justified not only for ethical reasons, but also for reasons of economic efficiency.

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Title: Women on the Board and Managers’ Pay: Evidence from Spain
Authors: Maria Encarnación Lucas-Pérez
Antonio Mínguez-Vera
Juan Samuel Baixauli-Soler
Juan Francisco Martín-Ugedo
Gregorio Sánchez-Marín
Publication date: 01-06-2015
Publisher: Springer Netherlands
Published in: Journal of Business Ethics / Issue 2/2015
Print ISSN: 0167-4544
Electronic ISSN: 1573-0697
DOI: https://doi.org/10.1007/s10551-014-2148-1

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