scholarly journals Balance rather than critical mass or tokenism

2019 ◽  
Vol 40 (5) ◽  
pp. 894-916 ◽  
Author(s):  
Esteban Lafuente ◽  
Yancy Vaillant
Keyword(s):  
Organizational Performance ◽  
Fixed Effects ◽  
Critical Mass ◽  
Gender Diversity ◽  
Costa Rican ◽  
Data Set ◽  
Content Type ◽  
Financial Firms ◽  
Corporate Hierarchy ◽  
Fixed Effects Regression

Purpose The purpose of this paper is to analyzes how board’s gender diversity, and more specifically a gender-balanced configuration – i.e. a proportion of women in the boardroom ranging between 40 and 60 percent – affects economic and risk-oriented performance in financial firms. Design/methodology/approach The empirical application uses a rich data set that includes detailed accounting and organizational information for all financial firms in the Costa Rican industry during the period 2000–2012. The proposed hypotheses are tested using panel data (fixed-effects) regression models that emphasize that bank performance is affected by various dimensions of the banks’ gender diversity. Findings The longitudinal analysis of the Costa Rican banking industry reveals that, unlike a proportion indicating a particular critical mass of women on the board, a balanced gender configuration yields superior economic performance (ROA and net intermediation margin). Additionally, the findings show that the performance benefits of gender diversity only exists in the presence of a gender-balanced board configuration, and that this positive effect is not conditioned by the presence of women leadership in the corporate hierarchy (Chair or CEO). Originality/value The paper further explores the influence of board gender diversity on organizational performance by adopting an approach to the gender diversity–performance relationship that goes beyond the mere representation of women within the corporate hierarchy.

Funding for start-ups in India: what shakes it?

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Saibal Ghosh
Keyword(s):  
Fixed Effects ◽  
Equity Financing ◽  
Data Set ◽  
Content Type ◽  
Factors Affecting ◽  
Indian Context ◽  
Key Factor ◽  
Salutary Effect ◽  
Fixed Effects Regression ◽  
Start Ups

Purpose Using a novel monthly data set, this study aims to examine the factors affecting the funding of Indian start-ups. Design/methodology/approach Given the panel structure of the data, the fixed effects regression technique has been used. Findings The findings reveal that years of operation is a key factor. Amongst others, angel investors and equity financing are the key drivers of startup financing. Government policy does not appear to have gained adequate traction, although the improvement in the business reform action by state governments has begun to exert a salutary effect. Practical implications From a policy standpoint, the study provides insights into what policies and practices can be exploited to streamline the funding bottlenecks affecting startups in the Indian context. Originality/value Notwithstanding being a country with a significant presence in the startup space, there are admittedly limited studies, which examine this issue for India. Viewed from this standpoint to the best of the knowledge, the analysis is one of the early studies to shed light on the factors driving the funding of startups in the Indian context.

Farm-level evidence on risk balancing behavior in the EU-15

2014 ◽  
Vol 74 (1) ◽  
pp. 17-37 ◽  
Author(s):  
Yann de Mey ◽  
Frankwin van Winsen ◽  
Erwin Wauters ◽  
Mark Vancauteren ◽  
Ludwig Lauwers ◽  
...  
Keyword(s):  
Fixed Effects ◽  
Large Scale ◽  
The European Union ◽  
Data Set ◽  
Correlation Relationship ◽  
Content Type ◽  
Farm Level ◽  
Relationship Analysis ◽  
Trade Offs ◽  
Fixed Effects Regression

Purpose – The purpose of this paper is to present empirical evidence of risk balancing behavior by European farmers. More specifically, the authors investigate strategic adjustments in the level of financial risk (FR) in response to changes in the level of business risk (BR). Design/methodology/approach – The authors conducted a correlation relationship analysis and run several linear fixed effects regression models using the European Union (EU)-15 FADN panel data set for the period 1995-2008. Findings – Overall, the paper finds EU evidence of risk balancing. The correlation relationship analysis suggests that just over half of the farm observations are risk balancers whereas the other (smaller) half are not. The coefficient in our fixed effects regression suggests that a 1 percent increase in BR reduces FR by 0.043 percent and has a standard error so low that the existence of non-risk balancers is doubtful. The results reject evidence of strong-form risk balancing – inverse trade-offs between FR and BR keeping total risk (TR) constant – but cannot reject weak-form risk balancing – inverse trade-offs between FR and BR with some observed changes in TR. Furthermore, the extent of risk balancing behavior is found to differ between different European countries and across farm typologies. Practical implications – This study provides European policy makers a first insight into risk balancing behavior of EU farmers. When risk balancing occurs, BR-reducing agricultural policies induce strategic upwards leverage adjustments that unintentionally reestablish or even increase total farm-level risk. Originality/value – Making use of the large and unique FADN database, to the best of the authors knowledge, this study is the first that provides European (EU-15) evidence on risk balancing behavior, is conducted at an unprecedented large scale, and presents the first risk balancing evidence across countries and farming systems.

Female directors and risk-taking behavior of Indian firms

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Shreya Biswas
Keyword(s):  
Risk Taking ◽  
Fixed Effects ◽  
Critical Mass ◽  
Gender Diversity ◽  
Dynamic Panel Data ◽  
Fixed Effects Model ◽  
Firm Level ◽  
Content Type ◽  
Female Directors ◽  
Risk Taking Behavior

PurposeThis study examines whether female directorship on board is related to firm's risk-taking behavior in India.Design/methodology/approachThe study considers the top 500 listed companies in India during the period 2013 to 2018 for the analysis. The paper employs fixed effects as well as a dynamic panel data model to address the bias in the fixed effects model when the lagged risk outcome is included as an explanatory variable.FindingsThe study finds that the presence of female directors on board is unrelated to the firm's risk-outcomes and the risk-adjusted return earned by the shareholders. The results are in line with the tokenism theory of board diversity. Having a higher share of female independent directors is also unrelated to the risk-taking behavior of firms. The findings are in contrast to the critical mass theory and the agency theory of gender diversity. The study does not rule out the possibility of female directors' risk-preferences being similar to those of male directors.Practical implicationsThe findings suggest that regulations related to having independent female directors may not add value for the shareholders in the short run. The business case for such stringent regulations in India on the gender diversity of boards remains unclear.Originality/valueThis is the first study to analyze the relationship between gender diversity of boards and firm-level risk in India. Most of the studies have focused on gender diversity and firm performance in India. However, modern portfolio theory suggests that both risk and return are important as shareholders care about risk-adjusted returns.

Firm level profitability determinants in Indian drugs and pharmaceutical industry

2017 ◽  
Vol 11 (3) ◽  
pp. 271-290 ◽  
Author(s):  
Shilpi Tyagi ◽  
D.K. Nauriyal
Keyword(s):  
Pharmaceutical Industry ◽  
Fixed Effects ◽  
Positive Influence ◽  
Working Environment ◽  
Raw Material ◽  
Investment Strategies ◽  
Firm Level ◽  
Data Set ◽  
Content Type ◽  
Fixed Effects Regression

Purpose This paper aims to analyze the firm level determinants of profitability of Indian drug and pharmaceutical industry which is known for historically weak R&D initiatives. Design/methodology/approach The change in the economic environment brought out by the Trade-Related Intellectual Property Rights (TRIPS) compliance, this industry was found to have fast adjusted to a new working environment by substantially modifying its strategies. This study aims at using inflation-adjusted panel data for a period 2000-2013 and applies the fixed effects regression model with cluster standard errors. Findings The study has found that export intensity, A&M intensity, firm’s market power and stronger patent regime dummy have exercised positive influence on profitability. The negative and statistically significant influence of R&D intensity and raw material import intensity points to the need for firms to adopt suitable investment strategies. Research limitations/implications The study suggests that firms are required to pay far more attention to optimize their operating expenditures, advertisement and marketing expenditures and improve their export orientation, as part of the long-term strategy. Originality/value This study uses a recent data-set to analyze the firm level profitability determinants in the Indian pharmaceutical industry and captures the effect of change in profitability pre and post-TRIPS.

Board demographic diversity, firm performance and strategic change

2014 ◽  
Vol 37 (12) ◽  
pp. 1110-1136 ◽  
Author(s):  
Daniel Kipkirong Tarus ◽  
Federico Aime
Keyword(s):  
Firm Performance ◽  
Fixed Effects ◽  
Strategic Change ◽  
Secondary Data ◽  
Developed Countries ◽  
Outcome Variable ◽  
Demographic Diversity ◽  
Content Type ◽  
Fixed Effects Regression ◽  
High Level

Purpose – The purpose of this study is to examine the effect of boards’ demographic diversity on firms’ strategic change and the interaction effect of firm performance. Design/methodology/approach – This paper used secondary data derived from publicly listed firms in Kenya during 2002-2010 and analyzed the data using fixed effects regression model to test the effect of board demographic and strategic change, while moderated regression analysis was used to test the moderating effect of firm performance. Findings – The results partially supported board demographic diversity–strategic change hypothesis. In particular, results indicate that age diversity produces less strategic change, while functional diversity is associated with greater levels of strategic change. The moderated regression results do not support our general logic that high firm performance enhances board demographic diversity–strategic change relationship. In effect, the results reveal that at high level of firm performance, board demographic diversity produces less strategic change. Originality/value – Despite few studies that have examined board demographic diversity and firm performance, this paper introduces strategic change as an outcome variable. This paper also explores the moderating role of firm performance in board demographic diversity–strategic change relationship, and finally, the study uses Kenyan dataset which in itself is unique because most governance and strategy research uses data from developed countries.

Does board gender diversity affect the transparency of corporate political disclosure?

2018 ◽  
Vol 26 (4) ◽  
pp. 444-463 ◽  
Author(s):  
D.G. DeBoskey ◽  
Yan Luo ◽  
Jeff Wang
Keyword(s):  
Corporate Governance ◽  
Voluntary Disclosure ◽  
Gender Diversity ◽  
Political Activity ◽  
Political Contributions ◽  
Firm Level ◽  
Data Set ◽  
Content Type ◽  
Ethics Research ◽  
Board Gender Diversity

Purpose The purpose of this paper is to examine the influence of board gender diversity on the transparency of corporate political disclosure (CPD). Design/methodology/approach Two empirical proxies, CPD transparency and policy transparency, are constructed from a data set jointly produced by the Center of Political Activity and the Carol and Lawrence Zicklin Center for Business Ethics Research. The CPD transparency score measures the level of transparency in voluntary corporate disclosure of the amount of political contributions and the identity of the recipients as well as the titles and names of the executives who authorize the political spending. The policy transparency score measures the level of transparency in the voluntary disclosure of the policies governing corporate political spending. Board gender diversity is measured by the percentage of women on the board of directors. Findings Higher proportions of female directors are associated with more transparent disclosure of political contributions after controlling for a set of corporate governance and firm-level variables. Originality/value This study is the first to examine whether and how gender-diversified boards enhance the transparency of CPD. It contributes to the literature by providing evidence that gender-diversified boards enhance corporate governance.

scholarly journals Unobservable characteristics of board directors and the performance of financial services firms in Nigeria

2020 ◽  
Vol 17 (4) ◽  
pp. 378-388
Author(s):  
Henry Osahon Osazevbaru ◽  
Emmanuel Mitaire Tarurhor
Keyword(s):  
Firm Performance ◽  
Financial Services ◽  
Stock Exchange ◽  
Gender Diversity ◽  
Share Price ◽  
Corporate Board ◽  
Return On Assets ◽  
Data Set ◽  
Strategic Performance ◽  
Financial Firms

This paper examines the intricate link between unobservable characteristics of directors on the corporate board and firm performance. It aims to extend the literature on corporate governance and firm strategic performance from the perspective of emerging African economies. A mix of performance measures were used (Tobin Q, return on assets, and share price) and unobservable characteristics were captured as a stochastic element or heterogeneity of observable board characteristics (board activity, gender diversity, size, and independence). The study applied non-linear generalized auto-regressive conditional heteroscedasticity model to examine the data set consisting of 299 firm-year observations from 23 financial firms listed on the Nigerian Stock Exchange from 2006 to 2018. Positive skewness and leptokurtic distribution were found for all the variables. Correlation matrix revealed no multicollinearity, as the highest value was 0.2386. Empirical results suggest that unobservable characteristics significantly and positively influence firm performance as measured by return on assets and share price. This is because the coefficient of the lagged-value of the variance scaling parameter is positive and significant at the 1% level. However, with respect to Tobin Q measure, the result was positive but not significant at the 5% level. Implicitly, the result is sensitive to performance proxies. Accordingly, this study concludes that unobservable characteristics drive firm performance. It is recommended that boards and regulators should pay attention to unobservable characteristics.

The role of national culture in the impact of board gender diversity on firm performance: evidence from a multi-country study

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Navaz Naghavi ◽  
Saeed Pahlevan Sharif ◽  
Hafezali Bin Iqbal Hussain
Keyword(s):  
Corporate Governance ◽  
Firm Performance ◽  
Generalized Method Of Moments ◽  
Gender Diversity ◽  
Governance Structure ◽  
Corporate Governance Structure ◽  
Data Set ◽  
Content Type ◽  
Board Gender Diversity ◽  
The Impact

PurposeThis study seeks to add more insights to the debate on “whether”, “how”, and “under which condition” women representation on the board contributes to firm performance. More specifically, the current study aims to investigate if the effect of board gender diversity on firm performance is dependent on macro factors of national cultures.Design/methodology/approachThe authors used the generalized method of moments regression and a data set consists of 2,550 company year observations over 10 years.FindingsThe results indicated that cultural variables interact with board diversity to influence firm performance. Having women on the board in countries with high power distance, individualist, masculine and low-uncertainty avoidance culture influences the firm performance negatively.Originality/valueThe findings indicate that the effects of corporate governance structure on firm performance depends on culture-specific factors, providing support for the argument that institutional norms that are governed by cultural norms affect the effectiveness of corporate governance structure.

A big data approach to examining social bots on Twitter

2019 ◽  
Vol 33 (4) ◽  
pp. 369-379 ◽  
Author(s):  
Xia Liu
Keyword(s):  
Big Data ◽  
Fixed Effects ◽  
Latent Dirichlet Allocation ◽  
User Generated Content ◽  
Fixed Effects Model ◽  
Data Set ◽  
Information Distortion ◽  
Content Type ◽  
Related Information ◽  
Brand Reputation

Purpose Social bots are prevalent on social media. Malicious bots can severely distort the true voices of customers. This paper aims to examine social bots in the context of big data of user-generated content. In particular, the author investigates the scope of information distortion for 24 brands across seven industries. Furthermore, the author studies the mechanisms that make social bots viral. Last, approaches to detecting and preventing malicious bots are recommended. Design/methodology/approach A Twitter data set of 29 million tweets was collected. Latent Dirichlet allocation and word cloud were used to visualize unstructured big data of textual content. Sentiment analysis was used to automatically classify 29 million tweets. A fixed-effects model was run on the final panel data. Findings The findings demonstrate that social bots significantly distort brand-related information across all industries and among all brands under study. Moreover, Twitter social bots are significantly more effective at spreading word of mouth. In addition, social bots use volumes and emotions as major effective mechanisms to influence and manipulate the spread of information about brands. Finally, the bot detection approaches are effective at identifying bots. Research limitations/implications As brand companies use social networks to monitor brand reputation and engage customers, it is critical for them to distinguish true consumer opinions from fake ones which are artificially created by social bots. Originality/value This is the first big data examination of social bots in the context of brand-related user-generated content.

Board gender diversity and US corporate bonds

2019 ◽  
Vol 15 (5) ◽  
pp. 771-791 ◽  
Author(s):  
Renee M. Oyotode-Adebile ◽  
Zubair Ali Raja
Keyword(s):  
Panel Data ◽  
Propensity Score ◽  
Design Methodology ◽  
Gender Diversity ◽  
Data Set ◽  
Content Type ◽  
Gender Diverse ◽  
Board Gender Diversity ◽  
The Impact ◽  
Women Participation

Purpose The purpose of this paper is to examine the impact of board gender diversity on bond terms and bondholders’ returns. Design/methodology/approach The authors perform pooled OLS regression, simultaneous regressions and propensity score matching to a panel data set of bond data for 319 US firms from 2007 to 2014. Findings The authors find that firms with gender-diverse boards have lower yields, higher ratings, larger issue size and shorter maturity. They also find that bondholders require fewer returns from firms with gender-diverse boards. However, the effect is more pronounced when women, constitutes at least 29.67 percent of the board. Originality/value This analysis supplements the findings that board gender diversity is essential for bondholders. It shows that bondholders should look at board gender diversity as a criterion to invest because bonds issued by firms with gender-diverse board have less risk. For practitioners, this study shows that more women participation on boards leads to a reduction in borrowing costs.

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