EconPapers    
Economics at your fingertips  
 

The effect of shareholder litigation rights on female board representation: A quasi-natural experiment

Pattanaporn Chatjuthamard, Ploypailin Kijkasiwat and Pornsit Jiraporn

PLOS ONE, 2022, vol. 17, issue 9, 1-19

Abstract: Employing as a quasi-natural experiment an unexpected judgment by the Ninth Circuit Court of Appeals that raised the difficulty of shareholder litigation, we explore the effect of shareholder litigation rights on board gender diversity. Our difference-in-difference estimates show that an exogenous reduction in shareholder litigation risk results in significantly less female board representation, a decline by 11.44% in particular. Our findings corroborate the view that strong shareholder litigation rights strengthen internal governance such as board oversight. Therefore, when shareholder litigation rights are weakened, there is a drop in board quality. Additionally, we document a decline in board independence and an increase in board size following the Ninth Circuit ruling, both of which are associated with poorer board monitoring. Further analysis validates the results. i.e., propensity score matching, entropy balancing, GMM dynamic panel data estimation, and Oster’s (2019) testing for coefficient stability. Based on a quasi-natural experiment, our conclusion probably reflects a causal influence, rather than a mere correlation.

Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://journals.plos.org/plosone/article?id=10.1371/journal.pone.0272792 (text/html)
https://journals.plos.org/plosone/article/file?id= ... 72792&type=printable (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:plo:pone00:0272792

DOI: 10.1371/journal.pone.0272792

Access Statistics for this article

More articles in PLOS ONE from Public Library of Science
Bibliographic data for series maintained by plosone ().

 
Page updated 2025-05-31
Handle: RePEc:plo:pone00:0272792