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89 N.C. L. Rev. 809 (2010-2011)
Corporate Board Gender Diversity and Stock Performance: The Competence Gap or Institutional Investor Bias

handle is hein.journals/nclr89 and id is 815 raw text is: CORPORATE BOARD GENDER DIVERSITY
AND STOCK PERFORMANCE: THE
COMPETENCE GAP OR INSTITUTIONAL
INVESTOR BIAS?
FRANK DOBBIN** & JIWOOK JUNG***
INTRODUCTION             ..........................................809
I.     THEORIES OF GROUP COMPOSITION AND EFFICACY ...........813
A. Theories Suggesting Advantages of Group Diversity........814
B. Theories Suggesting Disadvantages of Group Diversity ...815
II.    RESEARCH ON BOARD DIVERSITY AND PERFORMANCE.....817
III.   INSTITUTIONAL INVESTOR ACTIVISM, INSTITUTIONAL
INVESTOR BIAS.....................................820
IV.    DATA AND METHODS             ...............................825
A. Sample             ...............................       ......825
B. Variables         ....................................826
C. Method            .....................................827
V.     FINDINGS           ..........................................828
CONCLUSION             ...................................................836
INTRODUCTION
Women have been gaining ground on corporate boards. They
held 14.8% of Fortune 500 seats in 2007.1 Yet the effect of women on
corporate performance is a matter of some debate. Studies using data
at one or two points in time find that gender diversity on boards is
associated with higher stock values and greater profitability.2
* @ 2011 Frank Dobbin & Jiwook Jung.
** Professor, Department of Sociology, Harvard University; Ph.D. (Sociology),
Stanford University; B.A., Oberlin College.
*** Ph.D. candidate in Sociology, Harvard University; B.A., Seoul National University.
We thank James Cox, Kimberly Krawiec, Donald Langevoort, Trent McCotter, and
participants in the conference Board Diversity and Corporate Performance: Filling the
Gaps for incisive comments on an earlier draft of the paper. We thank Lissa Broome, John
Conley, and Kimberly Krawiec for organizing the conference.
1. 2007 Census: Board Directors, CATALYST, 1 (2007), http://www.catalyst.org/file/
322/census boardjfinal.pdf.
2. See David A. Carter et al., The Gender and Ethnic Diversity of US Boards and
Board Committees and Firm Financial Performance, 18 CORP. GOVERNANCE 396, 410-11
(2010); Niclas L. Erhardt et al., Board of Director Diversity and Firm Financial

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