Diversity on corporate boards and shareholder activism: an intersectionality approach

Past efforts to relate board diversity and shareholder activism have mainly focused on directors’ gender in isolation, stressing that female board representation associates with lower shareholder activism. By considering gender as the only diversity dimension, however, this approach neglects the complex and multidimensional nature of the diversity construct. In this chapter, we draw on the notion of ‘intersectionality’ to argue that dual minority status in corporate boards (e.g., representation of directors with both gender and ethnic minority status) instead triggers a higher number of governance-related shareholder resolutions, a prominent form of shareholder activism. Our theory suggests that firms need to simultaneously consider the multiple configurations of board diversity. It also sheds light on the career disadvantages that dual minority directors may face due to shareholder resolutions - stressing that duality of minority status may associate with greater barriers at the board-shareholder interface.