Working Paper Revision

Gender and Professional Networks on Bank Boards

Abstract: Women are underrepresented on bank boards. Using a newly compiled dataset of bank board membership over the 1999-2018 period, we find that within-board professional networks are extensive, but female board members are significantly less connected than male directors, both in number and length of connections. We also find that professional networks play an important role in determining the appointment of bank board directors. Connections also positively impact compensation for female directors, especially connections to other women. These results suggest that there are differences in the breadth, depth, and value of the professional networks of male and female board members and that these differences could be a contributing channel through which women’s underrepresentation on boards prevails.

Keywords: bank boards; professional networks; gender; gender diversity;

JEL Classification: G21; G34; J16;

https://doi.org/10.17016/FEDS.2021.021r1

Bibliographic Information

Provider: Board of Governors of the Federal Reserve System (U.S.)

Part of Series: Finance and Economics Discussion Series

Publication Date: 2021-08-23

Number: 2021-021r1

Related Works

• Working Paper Revision (2021-08-23) : You are here.
• Working Paper Original (2021-03-22) : Gender and Social Networks on Bank Boards