Gender Diversity in Spanish Banks: Trickle-Down and Productivity Effects

Abstract

The study of the gender composition of top management and its impact for organizations has received increasing attention during recent decades. Despite this, findings have been conflicting and few consistent conclusions have been reached. This paper uses panel data methods to study how the presence of women at the board of governance impacts gender diversity at different organizational levels in the Spanish banking sector. In addition, we explore the influence of female representation on employee productivity. Our findings show that the presence of one or two women at the board of directors benefits the advancement of women to managerial positions. We also identify a positive significant relationship between gender diversity at different organizational strata and productivity. The main conclusion of this research is that female representation at the board has relevant implications in terms of women being promoted and organizational outcomes. This contribution is relevant for both scholars and practitioners, as it explores the business case for gender diversity going beyond the upper echelons of organizations.

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