Social capital and board gender diversity

Research question/issue This study explores the relationship between level of social capital in location a firm's headquarter and presence female board directors. We measure local by civic norms (i.e., voter turnout census participation) density networks community, professional, church, sports). hypothesize that greater levels will increase share directors on firms' boards, including women attaining critical mass as well member chair roles board's audit, compensation, nomination committees. findings/insights Using 53,671 observations from U.S. public companies 2000 to 2018, we find firms headquartered counties with higher have percentages The results are robust inclusion labor participation rate, religiosity, other county-level demographics instrumental variable propensity score matching models. also located high more likely achieve mass; attain membership and/or committees; serve audit committees than low counties. A robustness check an international sample reveals similar results. Theoretical/academic implications build institutional theory highlight informal institution capital, form networks, shapes gender composition boards. at two quest for “fit” environment: seeking creating leadership opportunities women, individuals pursuing moving up corporate careers. outline theoretical mechanisms underlying societal trust, tolerance equality, respect civil liberties, cooperative helpful behavior, transparency, external monitoring, less discrimination information asymmetry. Practitioner/policy Our findings offer insights policymakers practitioners interested how firm individual actions. policy-related suggest communities characterized commitment trust communities, cynicism, this context enables reach corporations' highest echelons. To maximize career prospects, can skills through associations strengthen ties capital. Firms should actively support community direct philanthropy towards building fabric communities.