Executive stock options, gender diversity in the top management team, and firm risk taking

Purpose This study aims to examine the effects of top management team (TMT) heterogeneity and corporate social responsibility (CSR) on the firm risk of Bursa Malaysia listed firms. Also, this study examines the moderating effect of CSR between TMT heterogeneity and firm risk. Design/methodology/approach This study uses panel regression models to test the hypotheses. The sample of this study is Bursa Malaysia non-financial listed firms from 2013 to 2017 with 3,055 observations. Findings This study finds significant effects of TMT age and tenure heterogeneities on total risk. Effects on idiosyncratic risk are evident only within age heterogeneity. Further, this study finds negative effects of CSR on total and idiosyncratic risks. CSR significantly moderates the relationship between total TMT heterogeneity and firm systematic risk. Practical implications This study reduces the literature gap by providing useful insights on the effects of CSR activities and TMT heterogeneity on firm risk. The findings can also provide hints to investors to assist them in assessing firm risk based on TMT heterogeneity and firms’ CSR. This study can also benefit shareholders in their attempts to mitigate the risk of their portfolio by investing in firms that are socially responsible as firms with high CSR suffer lower total and idiosyncratic risks. Originality/value Previous studies have emphasised on the influence of TMT characteristics and CSR on firm performance. However, studies that investigate the effects of TMT heterogeneity and CSR on firm risk are limited in the context of Malaysia.

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MCCG 2012 versus MCCG 2017: Board Gender Diversity and Women CEO Issues within the Male-dominated Oil and Gas Industry

Business Management and Strategy ◽

10.5296/bms.v10i2.15290 ◽

2019 ◽

Vol 10 (2) ◽

pp. 122

Author(s):

Dayana Mastura Baharudin ◽

Maran Marimuthu

Keyword(s):

Oil And Gas ◽

Top Management Team ◽

Gender Diversity ◽

Oil And Gas Industry ◽

Management Team ◽

Annual Reports ◽

Top Management ◽

Gas Industry ◽

Board Gender Diversity ◽

The Impact

Purpose – This study investigates the impact of the two main determinants of strengthening the Board and Top Management Team through gender diversity contrasting between the pre and post MCCG 2017 era.Design/methodology/approach – The study will employ the judgmental sampling method followed by descriptive statistics, regression analysis and quantitative content analysis derived from MCCG 2012 and MCCG 2017 as issued by the Malaysian Securities Commission together with prior research to analyse the annual reports in order to explore the reporting of gender diversity across the Board and Top Management Team.Originality/value – This study is a systematic review of prior recent research developments in the Malaysian Securities Commission’s MCCG 2012 and MCCG 2017. The Board of Directors and Top Management Team scoring index could also be applied to other PLCs within the ASEAN oil and gas industry.

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The Impact of Top Management Team Gender Diversity in Firm Competitive Aggressiveness

Academy of Management Proceedings ◽

10.5465/ambpp.2014.16189abstract ◽

2014 ◽

Vol 2014 (1) ◽

pp. 16189

Author(s):

Iiro Vaniala ◽

Henrikki Tikkanen ◽

Juho-Petteri Huhtala

Keyword(s):

Top Management Team ◽

Gender Diversity ◽

Management Team ◽

Top Management ◽

Competitive Aggressiveness ◽

The Impact

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Performance effects of top management team gender diversity during the merger and acquisition process

Management Decision ◽

10.1108/md-03-2014-0141 ◽

2015 ◽

Vol 53 (1) ◽

pp. 57-74 ◽

Cited By ~ 21

Author(s):

Heather R. Parola ◽

Kimberly M. Ellis ◽

Peggy Golden

Keyword(s):

Top Management Team ◽

Gender Diversity ◽

Merger And Acquisition ◽

Management Team ◽

Top Management ◽

Negative Effects ◽

Content Type ◽

Double Edge ◽

Performance Effects ◽

Double Edge Sword

Purpose – The purpose of this paper is to uncover the performance effects of top management team (TMT) gender diversity in the merger and acquisition (M&A) process. To do so, an integration of the upper echelons perspective and the M&A process literature is offered to consider the “double-edge sword” of gender diversity on both pre- and post-integration performance. Additionally, the boundary effects of acquirer experience on the TMT gender diversity-performance relationship is examined. Design/methodology/approach – The hypotheses are tested in a sample of 310 acquisitions by Fortune 1,000 companies. Multiple regression analysis is utilized to test the effects on the two different performance variables. Findings – The findings reveal that TMT gender diversity is beneficial to pre-integration performance, but hinders post-integration performance. Additionally, the findings provide evidence that acquirer experience can overcome the negative effects of gender diversity in post-integration performance. Originality/value – This study contributes to a better understanding of the double-edge sword of TMT gender diversity by providing evidence that performance implications depend on the performance variable of interest. Specifically in the M&A context, gender diversity has differing effects on pre- and post-integration performance.

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Does mandated RFID affect firm risk? The moderating role of top management team heterogeneity

International Journal of Production Economics ◽

10.1016/j.ijpe.2019.01.015 ◽

2019 ◽

Vol 210 ◽

pp. 84-96 ◽

Cited By ~ 2

Author(s):

Ariel K.H. Lui ◽

Chris K.Y. Lo ◽

Eric W.T. Ngai

Keyword(s):

Top Management Team ◽

Management Team ◽

Top Management ◽

Firm Risk ◽

Team Heterogeneity ◽

Moderating Role

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Top Management Team Risk Taking Propensities and Firm Performance: Direct and Moderating Effects

Journal of Business Strategies ◽

10.54155/jbs.19.2.95-114 ◽

1970 ◽

Vol 19 (2) ◽

pp. 95-114

Author(s):

Matthew Gilley ◽

Bruce Walters ◽

Bradley Olson

Keyword(s):

Firm Performance ◽

Risk Taking ◽

Top Management Team ◽

Dynamic Environments ◽

Positive Influence ◽

Performance Outcomes ◽

Management Team ◽

Top Management ◽

Moderating Effects ◽

Measures Of Risk

We investigate the influence of top management team (TMT) risk takingpropensities on firm performance. Diverging from previous work on the risktaking-performance relationship, we rely on perceptual (rather than archival)measures of risk taking. In addition to financial performance, we examineother performance outcomes of risk taking, such as innovativeness andstakeholder satisfaction. Contrary to the findings of Bromiley (1991J andBowman (1980), we find that risk taking has a strong positive influence onfirm performance. In addition, the risk taking-performance relationship ismoderated by the dynamism of the firm's industry. More specifically, we findthat the benefits of TMT risk taking are reduced in more dynamic environments.

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