Clan culture and gender diversity in top management teams: evidence from China

Purpose This paper aims to investigate the influence of clan culture on gender diversity within the top management teams of Chinese firms. Design/methodology/approach This paper analyzes data from Chinese companies listed on the A-share markets from 2003 to 2022. Findings We find that stronger clan culture is associated with lower female representation in leadership roles, including positions on the board of directors, supervisory boards and among senior executives. Cross-sectional tests reveal that this negative relationship is more pronounced in state-owned enterprises compared to non-state-owned enterprises. Additionally, we identify mitigating factors: regions with higher economic development and greater foreign cultural influence are less likely to hinder female advancement into top management. Lastly, our analysis of the mechanisms by which clan culture perpetuates gender inequality perceptions underscores its harmful effects on both the demand for and supply of female labor in executive roles. Originality/value In recent years, the topic of gender diversity within corporate boardrooms, executive ranks and the workforce at large has garnered considerable attention. Despite extensive research on the determinants of gender diversity and its impact on firm outcomes, the influence of informal institutions, such as culture, on gender diversity within organizations remains an understudied area. This gap is especially pronounced in the context of China, where cultural norms and values deeply influence gender roles and dynamics. Our paper aims to enrich the discourse on gender diversity by exploring the impact of clan culture, a fundamental element of Chinese culture, on the gender diversity of top management teams in Chinese firms.