Do Social Trust and Tolerance Affect Board Gender Diversity? An International Evidence

ABSTRACT Research question/Issue The paper investigates how social trust and tolerance affect board gender diversity levels in 67 countries. Research Findings/Insights We find robust evidence that countries in which people display trust toward strangers, people of other countries, and other religions have more gender‐diverse boards. We also find that tolerance toward homosexuals, immigrants, and people of other religions and different races promotes gender‐diverse boards. Theoretical/Academic Implications This paper relies on social trust, tolerance, and institutional theories. Trust and tolerance theories suggest that trusting others and displaying tolerance toward people who are different from oneself have many important social and economic consequences. We relate social trust and tolerance theories to governance and board gender diversity in a large cross‐section of countries. Practitioner/Policy Implications Board gender diversity has both practical and policy implications. Our findings suggest that legislating comprehensive gender quotas may not be sufficient. More importantly, unlike cultural values, trust and tolerance can be more readily cultivated to promote policies and workplace practices. JEL Classification G38, G41, J18, L25, M14, Z13