Women on boards : the role of female chairs and board interlocks in shaping UK corporate governance

Abstract

This thesis investigates the impact of female leadership on corporate governance in UK FTSE 350 companies, with a focus on women chairing boards and central committees (audit, remuneration, and nomination) over the period 2011–2021. As women’s representation on boards increases, this study explores whether female leadership enhances corporate governance performance and if this effect is sustained in companies with substantial board interlocks. Guided by Agency Theory, the research emphasizes the board's monitoring function, enhancing transparency and accountability and contributing to higher governance scores as measured by the Bloomberg ESG ‘G’ Index. It also explores how board interlocks with female directors may moderate the relationship between female board leadership and governance outcomes, while Resource Dependency Theory frames the direct relationship between interlocks and governance. Using network analysis to assess the degree centrality of board interlocks, results indicate that gender-diverse boards and female-chaired remuneration committees are positively associated to higher governance scores and that companies chaired by women with substantial interlocks tend to perform better in governance. This study contributes to corporate governance literature by highlighting the effects of gender diversity and interlocks on governance practices. Methodologically, it provides a unique dataset combining extensive corporate governance, financial, and board composition variables, creating a comprehensive, publicly accessible resource to support future research.