Board Diversity and the Appointment of Women CEOs: The Moderating Effects of Separation and Disparity

Extant research finds a ‘trickle down effect’ in CEO selection, whereby gender diversity in the boardroom begets gender diversity at the position of CEO. We build upon such work by incorporating other aspects of diversity, following Harrison and Klein’s (2007) classification of diversity as variety, separation, or disparity. In a boardroom setting, whereas variety largely reflects the effect of directors’ demographics, separation captures differences in directors’ roles, while disparity relates to variation in directors’ power or influence. Using these distinct constructs, we explore how differing dimensions of diversity interact to affect the likelihood of hiring a woman CEO. We find that diversity as separation (disparity) on a board of directors significantly amplifies (attenuates) the relationship between diversity as variety and CEO gender. These results provide important nuance on how board characteristics impact the diversity of new CEO hires. JEL CLASSIFICATION: M10, M12, M14