The Role of Family Ties in Women's Board Appointment : Evidence from a Danish Reform

Networks play a crucial role in board promotions, yet women often are underrepresented in traditional business networks. Using matched firm-director datasets covering the population of Danish firms from 2000 to 2010, I show that family connections are an important determinant of women's access to the boardroom. First, 42% of female directors -- but only 11% of male directors -- had a relative who was a CEO or board director before they started their career. Second, using variation from a soft board gender quota implemented in 2012 and comparing highly qualified female candidates with and without family connections, I find that candidates with family connections are three times more likely to be appointed after the reform. In other words, board opportunities created by the reform benefit connected candidates much more. Third, additional tests suggest that visibility to other directors -- rather than skill differences -- explains the family connection premium