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Board Gender Diversity and Buyer-Supplier Relationships

Author

Listed:
  • Aral, Karca D.
  • Giambona, Erasmo
  • Lopez A., Ricardo
  • Wang, Ye

Abstract

Supply chain strategy is one of the main prerogatives of a corporate board. How does corporate board diversity affect buyer-supplier relationships? Following a requirement for California firms to increase board gender diversity, affected buyers consolidated their supply base by reducing suppliers relative to other states’ firms, while retaining long-term, domestic, and innovative suppliers. These changes occur when female directors are better situated to influence corporate decisions. Alternative explanations, such as the coronavirus pandemic, cannot explain our results. Our findings indicate a heightened propensity to build stronger buyer-supplier relationships by firms with diverse boards as an important channel for increased performance.

Suggested Citation

  • Aral, Karca D. & Giambona, Erasmo & Lopez A., Ricardo & Wang, Ye, 2024. "Board Gender Diversity and Buyer-Supplier Relationships," MPRA Paper 122823, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:122823
    as

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    File URL: https://mpra.ub.uni-muenchen.de/122823/1/MPRA_paper_122823.pdf
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    References listed on IDEAS

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    More about this item

    Keywords

    Corporate diversity; board gender diversity; supply chain base; buyer-supplier relationships; supply risk.;
    All these keywords.

    JEL classification:

    • G31 - Financial Economics - - Corporate Finance and Governance - - - Capital Budgeting; Fixed Investment and Inventory Studies
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • G33 - Financial Economics - - Corporate Finance and Governance - - - Bankruptcy; Liquidation
    • L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
    • L14 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Transactional Relationships; Contracts and Reputation
    • L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation
    • R3 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location
    • R30 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - General
    • R32 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Other Spatial Production and Pricing Analysis
    • R33 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Nonagricultural and Nonresidential Real Estate Markets
    • R4 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics
    • R40 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - General
    • R41 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Transportation: Demand, Supply, and Congestion; Travel Time; Safety and Accidents; Transportation Noise

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