Gendering the Boardroom: Mandated Inclusion, Cultural Change, and the Recalibration of Corporate Risk in Saudi Arabia

Abstract

This study investigates the relationship between board gender diversity and corporate risk-taking within the unique socio-cultural context of Saudi Arabia. Situated against the backdrop of Vision 2030, a national reform agenda aimed at economic diversification and social modernization, the mandated inclusion of women on corporate boards represents a profound cultural and institutional shift. We analyze how this gendered transformation of corporate leadership influences strategic decision-making. Drawing on a sample of 155 publicly listed firms from 2018 to 2024, our findings indicate that gender-diverse boards are associated with more cautious and balanced risk profiles. This suggests that the integration of women into high-level governance acts as a moderating force on corporate risk-taking. This research contributes to cultural analyses of economic change by demonstrating how targeted social policies can reconfigure power dynamics and decision-making norms within traditionally conservative institutional settings. The findings offer critical insights for policymakers and scholars of social change, highlighting the role of gender inclusivity in fostering sustainable and resilient economic practices in transforming societies.