Corporate Governance in Estonia: Equilibrium on Board

This paper starts with an assumption, that there are strong strategic benefits in having boards with members of different backgrounds, experience, and particularly gender, which is reflected in better corporate governance. The central research question of this paper is: To what extent have Estonian listed companies complied with the requirements of the EU law on Gender Balance on Boards compared to other Nordic countries? In the case of Estonia, all listed companies on the Tallinn Stock Exchange are included in our sample. The authors purposely focus on developing ownership strategies to improve diversity on the boards of corporations with concentrated ownership structures, without regard to arguments that emphasize equal rights or a feminist agenda. The methodology part of the study analyses corporate governance in Estonia, followed by a comparative analysis of Nordic countries (Finland, Sweden, Norway) that have successfully increased female representation on boards, providing valuable insights for Estonia’s efforts to enhance gender diversity. The results of the current research are a valuable analytical resource for the Estonian business community, as well as for policymakers.