Web links for 2nd March 2012
In 2006 Norway legislated to require that women should fill at least 40% of Board places in companies traded on the Oslo bourse. This study compares Norwegian and other Scandinavian companies and finds “that firms affected by the quota undertook fewer workforce reductions than comparison firms, increasing relative labor costs and employment levels and reducing short-term profits.”
The authors speculate that, over time, as more women candidates for board places become available, shareholders may find it easier to vote for candidates who share their beliefs. As a result, the differences highlighted in this study may gradually diminish.