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The Old Boys’ Club and Board Gender Diversity: Evidence from the Anti-corruption Campaign in China

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  • Deng, Jiapin
  • Lu, Di
Abstract
This paper reveals that male-dominant social networks through alcohol drinking is an important determinant that hinders women ascending onto corporate boards. Specifically, exploiting China's anti-corruption campaign launched in 2012 as an exogenous shock to the business drinking interactions, we find that the policy-induced reduction in alcohol drinking significantly promotes board gender diversity in Chinese listed firms. Further evidence shows that the effect of reduced alcohol drinking on board gender diversity is more pronounced in cities with a higher intensity of anti-corruption investigations and cities with less severe gender discrimination. Our empirical findings support the “old boys’ club” hypothesis, suggesting that male-dominant social networks hamper the access of qualified women to higher positions in the workplace.

Suggested Citation

  • Deng, Jiapin & Lu, Di, 2024. "The Old Boys’ Club and Board Gender Diversity: Evidence from the Anti-corruption Campaign in China," Journal of Economic Behavior & Organization, Elsevier, vol. 221(C), pages 626-656.
    • Handle: RePEc:eee:jeborg:v:221:y:2024:i:c:p:626-656
    DOI: 10.1016/j.jebo.2024.04.011
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    More about this item

    Keywords

    Board gender diversity; Alcohol drinking; Anti-corruption; Social networks;
    All these keywords.

    JEL classification:

    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance
    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination
    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination

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