| dc.description.abstract | California enacted the law of SB826 in 2018, which mandates corporate boards to include a
minimum number of female directors. I study companies’ reactions to this gender quota from
the perspective of board diversity as well as corporate compliance. My sample encompasses
data on the publicly held firms headquartered in California, Arizona, Oregon, Nevada, Texas,
or Washington from 2015 to 2021.
I find that compared to companies in the other five states, the companies based in CA
enhance female presence in boardrooms markedly after the enactment of the quota. However,
with more women in the boards of California corporations, their responses to corporate
noncompliance are no different than those of companies situated in the other five states. The
findings suggest that including more female board members, in the context of mandatory
gender quotas, does not notably help corporations to reduce noncompliance. | en_US |
