Women in Philippine Government Financial Institutions: A Network Analysis of Interlocking Governing Boards
Article Sidebar
Main Article Content
Abstract
Interlocking directorship is often described as the practice of members of a corporate board of directors serving on the boards of multiple corporations simultaneously. In the Philippines, previous studies have shown that of all the directors that served on the top 100 corporations, only 15 percent are women. On average, women comprise only 13 percent of the board of directors of individual companies. Hence, this study examines board interlocks within Philippine Government Financial Institutions (GFIs) and their gender aspect. By analyzing ten GFIs through network analysis over the period 2017-2019, this study finds two important points: (i) women’s representation in the board has been significantly low and (ii) board interlocking is highly connected and highly concentrated on a few directors holding multiple seats. Although they are still connected with the rest of the network members, women must go through farther and lengthier paths to reach other members than their male counterparts. This diminishes the opportunities to be an influential and significant network member. Thus, this paper recommends bringing the issue into national policy debates and creating better employment opportunities for women.
Article Details
This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.
Copyright: CC BY-NC-ND 4.0
References
Adams, R. B., & Ferreira, D. (2009). Women in the boardroom and their impact on governance and performance. Journal of financial economics, 94(2), 291-309.
Asimakopoulos, J. (2009). Globally segmented labor markets: the coming of the greatest boom and bust, without the boom. Critical Sociology, 35(2), 175-198.
Barbi, V. (2000). Interlocking directorship networks: What is relevant for the evolution and change of the networks? Italy: Department of Economics, University of Siena.
Carroll, W. K., & Alexander, M. (1999). Finance capital and capitalist class integration in the 1990s: Networks of interlocking directorships in Canada and Australia. Canadian Review of Sociology/Revue canadienne de sociologie, 36(3), 331-354.
Davis, G. F. (1991). Agents without principles? The spread of the poison pill through the intercorporate network. Administrative science quarterly, 36(4), 583-613.
Devos, E., Prevost, A., & Puthenpurackal, J. (2009). Are interlocked directors effective monitors? Financial Management, 38(4), 861-887.
Dooley, P. C. (1969). The interlocking directorate. The American Economic Review, 314-323.
Fernandez‐Feijoo, B., Romero, S., & Ruiz‐Blanco, S. (2014). Women on boards: do they affect sustainability reporting? Corporate Social Responsibility and Environmental Management, 21(6), 351-364.
Ferris, S. P., Jagannathan, M., & Pritchard, A. C. (2003). Too busy to mind the business? Monitoring by directors with multiple board appointments. The Journal of finance, 58(3), 1087-1111.
Glass, C., Cook, A., & Ingersoll, A.R. (2016). Do women leaders promote sustainability? Analyzing the effect of corporate governance composition on environmental performance. Business Strategy and the Environment 25(7), 495-511.
Governance Commission for GOCCs. (2012). Code of Corporate Governance for GOCCs. Retrieved from https://gcg.gov.ph/files/EfLOGYvaCTAqoJZDqT ZG.pdf
Hawe, P., Webster, C., & Shiell, A. (2004). A glossary of terms for navigating the field of social network analysis. Journal of Epidemiology & Community Health, 58(12), 971-975.
Hillman, A. J., & Dalziel, T. (2003). Boards of directors and firm performance: Integrating agency and resource dependence perspectives. Academy of Management review, 28(3), 383-396.
Hillman, A. J., Cannella, A. A., & Harris, I. C. (2002). Women and racial minorities in the boardroom: how do directors differ? Journal of Management, 28(6), 747-763.
Hillman, A. J., Shropshire, C., & Cannella, A. A. (2007). Organizational predictors of women on corporate boards. Academy of Management Journal, 50(4), 941-952.
Mac Canna, L., Brennan, N., & O’Higgins, E. (1998). National networks of corporate power: an Irish perspective. Journal of Management and Governance, 2(4), 357-379.
Mizruchi, M. S. (1996). What do interlocks do? An analysis, critique, and assessment of research on interlocking directorates. Annual review of sociology, 22, 271-298.
Mizruchi, M. S., & Stearns, L. B. (1994). A longitudinal study of borrowing by large American corporations. Administrative Science Quarterly, 39(1), 118-140.
Pfeffer, J., & Salancik, G. (1978). The external control of organizations: A resource-dependence perspective. New York: Harper & Row.
Republic Act No. 10149. (2011). Official Gazette of the Republic of the Philippines. Retrieved from https://www.officialgazette.gov.ph/2011/06/06/republic-act-no-10149/
Scott, J. (1991). Networks of corporate power: A comparative assessment. Annual review of sociology, 17, 181-203.
Shropshire C. (2010). The role of interlocking director and board receptivity in the diffusion of practices. Academy of Management Review, 35, 246-264.
Singh, V., Terjesen, S., & Vinnicombe, S. (2008). Newly appointed directors in the boardroom: How do women and men differ? European management journal, 26(1), 48-58.
Terjesen, S., Sealy, R., & Singh, V. (2009). Women directors on corporate boards: A review and research agenda. Corporate governance: an international review, 17(3), 320-337.
Westphal, J. D., & Stern, I. (2007). Flattery will get you everywhere (especially if you are a male Caucasian): how ingratiation, boardroom behavior, and demographic minority status affect additional board appointments at US companies. Academy of Management Journa,l 50(2), 267-288.