Media attention and multidimensional board diversity

Abstract

This study examines how media scrutiny influences multidimensional board diversity in a context where the main corporate governance concern is the potential expropriation of minority shareholders by controlling owners. We measure board diversity using the Blau index, which captures multiple dimensions, including gender, age, nationality, tenure, and education. Our findings show that greater media coverage tends to promote more diverse boards. When companies come under media attention, whether receiving approval or criticism, they often respond by signalling alignment with social expectations. In this context, board diversification becomes a visible yet low-risk adjustment that preserves internal control structures while addressing external scrutiny. Moreover, the tone of the coverage also matters, with favourable media coverage enhancing the reputational value of board diversity and encouraging visible appointments that signal responsiveness to public expectations without necessarily altering internal power dynamics. However, negative coverage may be perceived as a threat to internal power structures, leading controlling shareholders to resist governance reforms that could destabilise key relationships or expose internal disagreements. The study highlights how entrenched ownership structures can limit the role of media scrutiny in shaping multidimensional board diversity. The results also suggest that policymakers should consider both the tone of media coverage and controlling shareholders’ incentives when designing governance reforms.