Understanding the factors that influence the appointment of female directors is crucial to addressing the barriers preventing women from advancing to top management positions. Top management positions in South Africa remain predominantly male, with approximately 80% of directors being male in companies listed on the Johannesburg Stock Exchange (JSE) (Bosch et al., 2020). Previous studies suggest that meaningful contributions by women to decision-making on corporate boards require significant female representation. According to Torchia et al. (2010) and Wang et al. (2021), at least three women need to be present on corporate boards to ensure effective female participation. The current study aims to identify the factors that predict a higher share of women on corporate boards in South Africa.
The study utilises the South African Revenue Service administrative tax data from 2010 to 2021 (National Treasury and UNU-WIDER, 2022). The dataset is constructed from anonymised individual tax records and forms a matched employee-employer panel. The panel data includes information from an individual’s tax record submitted by firms on behalf of their employees, allowing the identification of each firm's employees. The study begins with a firm-level analysis examining how firm characteristics (such as the share of female employees, gender of the CEO, number of employees, and firm performance indicators) affect the share of female directors. Subsequently, the study focuses on a subsample of firms with an increasing share of female directors to explore individual characteristics that influence the likelihood of an individual being appointed as a director on the corporate board.
The underrepresentation of women in top management positions presents a significant challenge in South Africa, where only 31.6% of management roles were filled by women in 2021 (Statistics South Africa, 2021). Addressing this gender imbalance presents a policy opportunity to reduce gender inequality. Encouraging higher representation of women on corporate boards can lead to a more balanced distribution of men and women in management positions throughout the organisation. Additionally, numerous studies have demonstrated that firms benefit from gender-diverse corporate boards, and companies aiming to enhance their profitability should prioritise maintaining female representation on their boards (Adams & Ferreira, 2009; Liu et al., 2014; Post & Byron, 2015; Adams & Ferreira, 2009; Amin et al., 2022). Therefore, understanding the factors influencing the appointment of female directors is essential for developing effective policies that address barriers to women’s advancement in top management positions.
