Gender Quotas On Boards Are Not Just For Show

Gender-based quotas are an effective way to challenge power structures and improve the number of women on major board committees, finds new research by emlyon business school.

But ownership matters: state and institutional investors open the door, while family owners often keep it firmly shut.

The study, conducted by Professor Jean-Luc Arregle, Professor of International Strategy at emlyon business school, and his co-authors investigated how national quotas and corporate ownership influence the likelihood for firms to be superficial when appointing female members to boards of directors on major board committees.

They found that quotas triggered actions and practices that challenge power structures and resulted in more women appointed to major board committees (MBCs), relative to their presence on board of directors (BOD).

“These findings alleviate our concerns that quota passing would result in tokenism – the practice of making superficial or symbolic effort, without addressing the problem – where firms would appoint women to BOD but would refuse to grant them influential positions such as MBC membership,” says Professor Jean-Luc Arregle.

However, the researchers also found that corporate ownership has a strong influence on gender diversity on MBCs. Institutional investors and state-owned firms tend to be more supportive of female representation on MBCs.

Interestingly, the researchers found that family-owned companies appear to hold more conservative values, and therefore decrease gender diversity on MBCs. This suggests that family owners are less susceptible to societal expectations and values.

“It is important to highlight that in our data sample, women are underrepresented in all key corporate leadership positions. Only 1.36% of CEOs are women, and only 1.75% have a female board chair. In 49% of the companies, there was not a woman on a major board committee,” says Professor Jean-Luc Arregle.

For governments, the takeaway is clear: well-crafted gender quotas do not lead to empty representation. For institutional investors and governance activists, the findings affirm that ownership is power. By using their influence to support not just diversity but substantive inclusion, investors can push for governance practices that are both fair and effective.

For family firms, there is an opportunity to reconsider internal norms and recruitment strategies. Making space for women in governance is not just a matter of social responsibility.

It is also a pathway to better decision-making, broader talent pools, and stronger alignment with evolving societal expectations.

This study analysed 3500 publicly listed firms across 25 countries and was published in the Journal of Management Studies.