We use an event study design to provide evidence demonstrating how the trickle-down effect is influenced by the introduction of regulation on board gender diversity. In 2011, a new regulation was suddenly introduced for firms listed on the United Kingdom’s FTSE 350 index, the regulatory intervention put forward recommendations to increase the representation of women on the boards of FTSE 350 listed firms – the most critical recommendation was a voluntary target of having twenty-five percent of board positions held by women. We argue this change in regulation represents an exogenous shock, we utilize this shock to investigate how regulation influences the trickle-down of women’s representation from board level to senior management. We find evidence of a positive relationship between women on boards and women’s representation in senior management during the pre-regulation era – otherwise referred to as the trickle-down effect. However, the introduction of regulation had the unintended consequence of weakening the relationship between women on boards and women in senior management. Our results suggest that the trickle-down effect varies between different contexts and settings. We discuss the implications for research and practice.
Research into leadership has consistently associated leaders with follower outcomes, such as motivation, satisfaction, and individual performance. However, only a few studies have looked at the impact of leadership on economic outcomes. In this study we test the effect of leaders’ political ideology (an identifiable leadership preference) on economic outcomes (private and public business creation). By using a combination of a quasi-electoral experiment (mixed-ideological election in which the margin of victory is close to zero) and a regression discontinuity methodology, we tested whether right-wing mayors would see more private business created (as aligned with party objectives) than left-wing mayors during their tenure. We also tested whether left-wing mayors would see more public organizations created (as being aligned with party objectives) than right-wing mayors during their tenure. Based on a sample of over 400,000 new firms in over 3,155 Brazilian municipalities, we confirmed our hypothesis for right-wing mayors only. Moreover, we found some evidence that the most likely mechanism used by right-wing leaders to produce this result is the development of actions related to business incubation (a place for the development of startups). The implications for future research and the study’s important theoretical and practical contributions are discussed.

