Gender Diversity and Its Effects on Arms Embargo Violations : Prediction Probability of Embargo Violations With Company Board Diversity

Abstract

The research conducted in this report seeks to uncover the effects diversity in corporate board of directors have on the illegal sales of weapons to countries experiencing U.N arms embargoes. From our analysis and for the companies we investigated, we can determine that gender diversity in a company's board of directors does not influence a company's propensity to engage in illegal arms trading. This is evident from linear regression and various fixed effect regressions performed in our analysis. We postulate that the factors contributing to these actions are more complex than attributing them to one sole factor alone and each company’s internal and external dynamics will determine how large of a role gender diversity will have in their propensity to engage in illegal arms trading.