scholarly journals Does board gender diversity influence firm profitability? A control function approach

2020 ◽  
Vol 90 ◽  
pp. 168-181 ◽  
Author(s):  
Rey Đặng ◽  
L’Hocine Houanti ◽  
Krishna Reddy ◽  
Michel Simioni
Keyword(s):  
Control Function ◽  
Gender Diversity ◽  
Function Approach ◽  
Firm Profitability ◽  
Control Function Approach ◽  
Board Gender Diversity

Private firm performance: do women directors matter?

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Mahnoor Sattar ◽  
Pallab Kumar Biswas ◽  
Helen Roberts
Keyword(s):  
Firm Performance ◽  
Performance Measures ◽  
Small Firm ◽  
Gender Diversity ◽  
Private Firm ◽  
Private Firms ◽  
Women Directors ◽  
Content Type ◽  
Firm Profitability ◽  
Board Gender Diversity

Purpose This paper aims to examine the relationship between board gender diversity and private firm performance. Design/methodology/approach The authors test the association between board gender diversity and private firm performance by estimating pooled multivariate regressions using an unbalanced panel data set of 115,253 firm-year observations. Findings The authors find that younger, less busy and local women directors enhance private firm performance. Firms with 40% or more women directors report triple the economic benefits compared to boards with at least 20% women directors. Considering firm size, women directors significantly increase small firm profitability, and the effect is more pronounced for high-risk firms. Greater board gender diversity enhances small firm performance as the monitoring role of women directors benefits the firm even in the presence of busy men directors. Consistent with the agency theory framework, the authors find that women directors improve small firm profitability in the presence of agency costs. Research limitations/implications Due to the lack of availability of data about private firms, many factors are not directly observable. The analysis uses accounting-based performance measures that may be subject to managerial discretion. Nevertheless, the authors report highly significant results using cash-based performance measures that substantiate the overall findings. Practical implications The results of the present study point to the need for private firms to increase board gender diversity and consider women director busyness, age, nationality and firm size when making board director appointments. Originality/value This study adds to the scarce existent literature investigating private firms. The results contribute to the understanding of gender-diverse boards as well as the attributes of women directors that enhance private firm performance.

scholarly journals Local Government Cooperation at Work: A Control Function Approach

2014 ◽  
Author(s):  
Zineb Abid ◽  
Edoardo Di Porto ◽  
Angela Parenti ◽  
Sonia Paty
Keyword(s):  
Local Government ◽  
Control Function ◽  
Function Approach ◽  
Control Function Approach

Demand Estimation Using Managerial Responses to Automated Price Recommendations

2022 ◽  
Author(s):  
Daniel Garcia ◽  
Juha Tolvanen ◽  
Alexander K. Wagner
Keyword(s):  
Control Function ◽  
Price Change ◽  
Decision Makers ◽  
Function Approach ◽  
Difference In Differences ◽  
Price Variation ◽  
Data Set ◽  
Demand Elasticities ◽  
Price Adjustments ◽  
Control Function Approach

We provide a new framework to identify demand elasticities in markets where managers rely on algorithmic recommendations for price setting and apply it to a data set containing bookings for a sample of midsized hotels in Europe. Using nonbinding algorithmic price recommendations and observed delay in price adjustments by decision makers, we demonstrate that a control-function approach, combined with state-of-the-art model-selection techniques, can be used to isolate exogenous price variation and identify demand elasticities across hotel room types and over time. We confirm these elasticity estimates with a difference-in-differences approach that leverages the same delays in price adjustments by decision makers. However, the difference-in-differences estimates are more noisy and only yield consistent estimates if data are pooled across hotels. We then apply our control-function approach to two classic questions in the dynamic pricing literature: the evolution of price elasticity of demand over and the effects of a transitory price change on future demand due to the presence of strategic buyers. Finally, we discuss how our empirical framework can be applied directly to other decision-making situations in which recommendation systems are used. This paper was accepted by Omar Besbes, revenue management and market analytics.

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