What types of companies have female directors? Evidence from Japan

•This study presents evidence on the determinants of board diversity in Japan.•We use an original company survey linked to the government statistics.•Listed, long-established, and unionized companies tend not to have female directors.•Owner-managed companies are likely to have female directors.

Japan is known for its low level of female engagement in senior positions. This study analyzes the determinants of the presence and number of female directors among Japanese companies. We find that, first, listed and long-established companies, subsidiaries of parent companies, and unionized companies tend not to have female directors. Second, owner-managed companies are likely to have female directors and CEOs. Third, we find no evidence of tokenism among Japanese companies, whereby female-led companies do not appoint additional females as directors. To increase the number of female executives and directors substantially, creation of new businesses is essential.