Quotas for Women on Corporate Boards: The Call for Change in Europe

The debate for higher female representation on corporate boards has become particularly intensive during the recent financial crisis. Scholars advocate that women are more risk-averse, more engaged with longer-term issues and tend to draw more attention to governance and ethics. Thus, it is suggested that due to the behavioural differences between men and women, more gender-balanced boards would have prevented a number of financial collapses. This assertion has triggered more detailed analyses of current statistics for women on boards in the European Union. A number of states have implemented various non-binding measures for improving female representation on boards. This brought them acclaim, yet no discernible results. Should we indeed insist to have gender-balanced boards, we need quotas. Evidence is of strong support.