The Gender Gap in Directors’ Career Paths after Financial Restatements

This study provides some of the first evidence on gender-based differences in director retention at US public firms. While men hold the bulk of directorships, female directors are less likely than male directors to depart a board in a given year. However, when boards face adversity by way of financial restatements, the likelihood that female directors depart the board significantly increases compared to male directors at the same firm, especially when a man chairs the board. The departing female directors receive fewer future directorships at other firms and are more likely to be replaced by males compared to their male counterparts who depart.