Networks of Boards of Directors: Is the 'Golden Skirts' Only an Illusion?

Abstract

In this empirical research, using a database of 41,107 directors from 38 European countries from 1999 to 2015, we analyze the topological features of the director's networks and observe that the degree distribution for both men and women follows a power law. The exponent of the power law is higher for women than the one for men, suggesting a milder role of interlocking for women that points to the absence of the 'Golden Skirts' phenomenon at the European level (i.e., women who accumulate more directorships than men). This gender gap in power laws has faded away during the studied period, coinciding with two counteracting external forces. On one hand, the diffusion of corporate governance good practices in European companies, reducing the size of boards and discouraging the multiple directorships by a single person, democratizing the director's network. On the other, the political and regulatory pressure for more women on boards across Europe, creating a high demand for women in the network.