Challenging the glass cliff: a survival analysis of board member tenure in the Polish capital market

Abstract

Purpose – The article investigates the role of women in the corporate governance system within the Polish capital market, with a particular focus on the glass cliff phenomenon. Glass cliff theory posits that women are more likely to depart from corporate boards of companies experiencing changes in financial standing. Design/methodology/approach – Using survival analysis, we analyzed a sample of 355 companies listed on the Warsaw Stock Exchange, encompassing 11,223 observations of management and supervisory board members. Findings – The findings revealed no significant differences in board tenure or the risk of leaving corporate boards between men and women. Notably, the results suggest that women are less influenced by a company’s financial condition when deciding to leave or remain on the board, potentially indicating gender-based differences in risk attitudes. Specifically, the financial condition of a company has a lower impact on women’s hazard of board departure than men, challenging the glass cliff theory. Moreover, the study highlights the importance of other factors, such as regulatory frameworks, company size and owner type, which may affect board tenure duration. Originality/value – The research provides empirical evidence on the factors that influence the tenure of corporate board members in two-tier corporate governance structures. It also demonstrates the potential genderbased differences in risk perception.