California gender board quotas, cont’d

Securities and Exchange Commissioner Hester Peirce has some critical comments on the California legislation signed by outgoing Gov. Jerry Brown last year requiring corporations to adopt gender quotas in the composition of their board of directors. She notes that research may not support one of the law’s stated rationales, that of improving financial results through better corporate governance, and that the law proposes to “micromanage an aspect of corporate governance that corporations, boards, and shareholders seem perfectly capable of handling on their own.” Relatedly, if women directors have an effect on corporate governance that is any different from men’s, it may relate to factors other than their gender [Tyler Cowen on Alam, Chen, Ciccotello, and Ryan paper] More: Federalist Society teleforum with Anastasia Boden, Keith Paul Bishop on unanswered questions about the law’s application. Earlier, including the law’s doubtful constitutionality, here, here, and here.

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