Director Diversity, Turnover, and Promotion

In a recent study, we examine whether a director’s “diversity” explains two employment outcomes: being retained on the board and being promoted to board leadership positions. We define diversity as the director’s dissimilarity to the other members of the board (s)he serves on, along four key dimensions: age, gender, ethnicity, and skills. A director’s diversity along any of these dimensions is her distance from the board’s average on the dimension. Consider, for instance, age. A director is more “age-diverse” if the director’s age is very different from the average age of the remaining directors. Thus, an old director is diverse … Read more