Does a balanced gender ratio improve performance? The case of Spanish banks (1999-2010)

2016 ◽  
Vol 45 (1) ◽  
pp. 103-120 ◽  
Author(s):  
Óscar Rodríguez-Ruiz ◽  
Antonio Rodríguez-Duarte ◽  
Luis Gómez-Martínez
Keyword(s):  
Banking Sector ◽  
Unobserved Heterogeneity ◽  
Gender Diversity ◽  
Business Case ◽  
Return On Assets ◽  
Content Type ◽  
Optimal Mix ◽  
Banking Institutions ◽  
Women In Banking ◽  
Gender Groups

Purpose – The purpose of this paper is to identify the dynamics of the gender diversity-to-performance relationship in the Spanish banking sector in the period 1999-2010. Specifically the authors try to study how different proportions of men and women in banking institutions lead to different levels of return on assets (ROA) and sales productivity. Design/methodology/approach – The authors use conventional panel data methods to find an optimal mix of males and females which leads to higher levels of financial results. With the aim of controlling unobserved heterogeneity, equations are estimated using the random-effects model. Findings – The findings show that the proportion of women in the workforce does not affect productivity but significantly explains ROA. In addition low-moderated levels (27 per cent) of women in technical positions optimize ROA. Originality/value – This research empirically explores the business case for gender diversity going beyond the upper echelons of organizations. The authors also study how the technical qualification of employees can determine the optimal proportion of gender groups.

Would diversified corporate boards add value? The case of banking institutions in Malaysia

2018 ◽  
Vol 10 (2/3) ◽  
pp. 218-228 ◽  
Author(s):  
Ribed Vianneca W. Jubilee ◽  
Roy W.L. Khong ◽  
Woan Ting Hung
Keyword(s):  
Firm Value ◽  
Banking Sector ◽  
Gender Diversity ◽  
Governance Structure ◽  
Corporate Boards ◽  
Board Diversity ◽  
Content Type ◽  
Banking Institutions ◽  
The Government ◽  
The Impact

Purpose Board diversity has gained increasing attention and has been widely posited as a driver for firm value. The purpose of this paper is to provide empirical evidence on the relation of gender diversity of corporate boards with the value of banking institutions in Malaysia. Design/methodology/approach The sample comprised of ten banking institutions listed on Bursa Malaysia with data observations from 2007 to 2016. Panel data techniques were employed to investigate the relationship between having female directors and firm performance in terms of values generated as indicated by Tobin’s Q. Findings The results revealed a positive relationship between the proportion of female director and the value of the bank. Interestingly, this study found that appointment of female independent directors tends to be negatively related to the value of such institutions. Practical implications There remains a shortage of research studying the impact of gender equality on corporate boards in Malaysia generally and in the banking sector specifically. Thus, this study contributes a significant knowledge on the value implication of board diversity. The findings also provide useful insights on the developmental policy initiated by the government to increase female participation in the top management. Originality/value This study contributes to the literature by bridging the knowledge gap on board diversity in the governance structure of banking institutions. It also provides theoretical contributions to the development of regulatory policy in relation to gender diversification in corporate leadership.

Rationales of gender diversity management policies and practices in India: an exploratory empirical study in the Indian IT/ITeS industry

2020 ◽  
Vol 39 (6) ◽  
pp. 667-688
Author(s):  
Shreyashi Chakraborty ◽  
Leena Chatterjee
Keyword(s):  
Survey Methodology ◽  
Economic Value ◽  
Gender Diversity ◽  
Diversity Management ◽  
Business Case ◽  
Full Time ◽  
Content Type ◽  
Indian Context ◽  
Management Policies ◽  
Policies And Practices

PurposeThe Indian context is marked with weak anti-discrimination laws and patchy implementation of protection of civil rights of women at workplaces. The purpose of this paper is to unearth the rationales of the adoption of gender diversity management policies and practices in India, in the absence of laws and regulations.Design/methodology/approachInspiration is drawn from previous studies on diversity management in other national contexts, and a survey methodology was adopted. The lead researcher administered the questionnaires personally to all respondents to ensure that the understanding of the questions is uniform across respondents as gender diversity management is a relatively new concept in India.FindingsSize of the organisation (number of full-time employees), the influence of external organisations and perceived enhanced organisational flexibility were found to explain the adoption of gender diversity management policies and practices in the Indian IT/ITeS industry. Findings also indicate that Indian subsidiaries of foreign multinationals tend to adopt more gender diversity management policies and practices as compared to Indian-owned organisations.Research implicationsThis study provides evidence that organisations do not always enact structures or behaviours in the pursuit of normative rationality and also consider the economic value of them, establishing an organisational agency in adopting legitimated norms or practices. The study also shows that gender diversity management policies and practices are not only dependent on the enactment of laws but also are adopted because of the economic benefit perceived.Originality/valueDiversity management policies and practices have been mostly studied in national contexts with anti-discrimination laws or affirmative action programs and have been claimed to be a successor of equal employment opportunity (EEO) policies. In the absence of stringent laws to reduce or eliminate discrimination against women employees in Indian workplaces, this study contributes to the literature by determining whether the business case for gender diversity drives the adoption of gender diversity management in the Indian context.

Gender diversity and innovation in mining – a corpus-based discourse analysis

2017 ◽  
Vol 9 (4) ◽  
pp. 359-376 ◽  
Author(s):  
Ylva Fältholm ◽  
Cathrine Norberg
Keyword(s):  
Discourse Analysis ◽  
Gender Diversity ◽  
Mining Industry ◽  
Diversity Management ◽  
Business Case ◽  
Female Representation ◽  
Policy Makers ◽  
Content Type ◽  
Gender Patterns ◽  
Practical Implications

Purpose The purpose of this study is to gain increased knowledge about gender diversity and innovation in mining by analyzing how women are discursively represented in relation to these two concepts, and in doing so establish how diversity management is received and communicated in the industry. Design/methodology/approach The study is based on analysis of texts including references to gender diversity and innovation in mining found on the web. The tool used to retrieve the data has been WebCorpLive, a tool designed for linguistic analysis of web material. Findings Although increased female representation is communicated as a key component in the diversity management discourse, based on the idea that diversity increases innovation and creativity, closer analysis of texts on diversity and innovation in mining shows that what women are expected to contribute with has little explicit connection with innovation. Research limitations/implications The study contributes with increased knowledge about diversity management by providing an example of how it is received in a traditionally male-dominated industry. Practical implications The findings indicate that for diversity management to have a real effect in mining, it needs to be based on gender equality and social justice motives, rather than on a business case rationale – the principal motive today. To enable this change, stereotypical gender patterns, as shown in this study, need to be made visible and problematized among policy makers, practitioners and actors on all levels of the industry. Originality value The study contributes with new knowledge about gender in the mining industry previously not attended to by using a method which so far has been sparsely used in discourse analysis, although pointed out as promising.

Ethical values and bank performance: evidence from financial institutions in Malaysia

2020 ◽  
Vol 11 (1) ◽  
pp. 233-256
Author(s):  
Tuan Azma Fatiema Tuan Ibrahim ◽  
Hafiza Aishah Hashim ◽  
Akmalia Mohamad Ariff
Keyword(s):  
Banking Sector ◽  
Positive Association ◽  
Annual Reports ◽  
Bank Performance ◽  
Ethical Values ◽  
Return On Assets ◽  
Content Type ◽  
And Performance ◽  
The Relationship

Purpose The purpose of this study is to investigate the relationship between ethical values and performance in the context of the banking sector in Malaysia. Design/methodology/approach Based on the philanthropic model, this study posits that firms undertaking zakat and charity are ethical firms. Zakat disclosure index (ZDI) and charity disclosure index (CDI) were constructed to measure ethical values. This study hypothesises that ethical values are positively associated with bank performance. Ethical values (i.e. CDI and ZDI) and financial performance data (i.e. return on assets) were collected from the disclosures made in the annual reports of 50 banks for a period of five years (2010-2014). Findings A positive association was found between zakat disclosure and bank performance. The results indicate that higher zakat disclosure is associated with greater bank performance. However, no relationship was found between charity disclosure and bank performance. Research limitations/implications Considering the limitation of the index used in this study, other dimensions such as corporate governance, sustainability, products and environment can be considered in the development of index to measure ethical values in future studies. Originality/value This study offers additional explanation on the relationship between ethical values and performance by examining the role of zakat disclosures that characterize the unique aspects of Malaysian companies.

Latin America's management gender parity will be slow

2018 ◽  
Keyword(s):  
Gender Diversity ◽  
Business Case ◽  
Content Type ◽  
Business Outcomes ◽  
Women's Representation ◽  
Gender Parity ◽  
Women’S Representation ◽  
Economic Trends ◽  
Management Roles ◽  
Female Presence

Subject Women's representation in management and company boards. Significance While reports show that women in Latin America and the Caribbean (LAC) are increasingly taking on more management roles, these rarely extend to the highest positions of leadership, including board positions. Growing evidence links women’s representation in these senior leadership positions to improved business outcomes. Impacts High rates of women’s workforce participation may help to offset economic trends that threaten to boost poverty. Gender parity is rising, but many obstacles to an increased female presence in senior management persist. Shareholders will seek more gender diversity in management as the business case for gender diversity builds.

The role of technical efficiency, market competition and risk in the banking performance in G20 countries

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Yaoteng Zhao ◽  
Supat Chupradit ◽  
Marria Hassan ◽  
Sadaf Soudagar ◽  
Alaa Mohamd Shoukry ◽  
...  
Keyword(s):  
Technical Efficiency ◽  
Economic Performance ◽  
Banking Sector ◽  
Market Competition ◽  
Generalized Method Of Moments ◽  
Content Type ◽  
Banking Institutions ◽  
Sector Performance ◽  
The Impact ◽  
Risk Element

PurposeRecently, the financial sector has faced significant challenges regarding the market competition, its technical efficiency and risk factors around the globe and gain recent researchers' intentions. Thus, the present study aims to examine the impact of technical efficiency, market competition and risk in banking performance in Group of Twenty (G20) countries.Design/methodology/approachData have been obtained from the World Development Indicator from 2008 to 2019. For analysis purpose, random effect model and generalized method of moments (GMMs) have been executed using Stata.FindingsThe results revealed that market competition and banks' capital efficiency have a positive impact on banking performance, while banks' lending efficiency and non-performing loans have a negative association with the banking sector performance of G20 countries. These outcomes provide the guidelines to the regulators that they should formulate the effective policies related to the lending practices and non-performing loans that could improve the banking sector performance worldwide.Research limitations/implicationsThe study has examined only three economic factors like the technical efficiency rate, market competition and risk element, and their influences on banking institutions' operational and economic performance. But the analysis has proved that except these factors, several factors affect banking institutions' operational and economic performance. Thus, future scholars recommend they analyze all the banking sector areas, pick more factors and enlighten their operational and economic performance influences. Moreover, the author of this article has chosen a particular source for collecting data to meet his study's objective. Only a single piece of software has been applied to analyze data; thus, the data collected for this paper may be incomplete, lack accuracy and reliability. Therefore, the future authors are recommended to use multiple sources to collect data and its analysis to ensure the comprehension, completeness and accuracy.Originality/valueLast but not least, this study with the evidences from the banking sector of G20 countries tries to show on the banking management how the risk element matters in the banking sector in an economy. It makes it clear in which areas the banking institutions may be exposed to the risks, and how much sever different kinds of risks may be. Thus, it motivates the management to set a body of persons within the organization to monitor the risks, to try to avoid them and to overcome the problems created by these risks events.

Diversity ASX corporate governance recommendations: a step towards change?

2017 ◽  
Vol 8 (3) ◽  
pp. 335-357 ◽  
Author(s):  
Sonia Shimeld ◽  
Belinda Williams ◽  
Justin Shimeld
Keyword(s):  
Corporate Governance ◽  
Cultural Change ◽  
Listed Company ◽  
Gender Diversity ◽  
Business Case ◽  
Annual Reports ◽  
Gender Inequity ◽  
Content Type ◽  
Disclosure Requirements ◽  
Before And After

Purpose The business case argument was used to underpin the inclusion of diversity disclosures within the Australian Securities Exchange (ASX) Corporate Governance Principles and Recommendations (2010). By adding a requirement for diversity disclosure, an increase in focus on diversity would be expected because of a heightened level of accountability. Whether this change in the Recommendations affected any change in the boardroom is questionable though. The purpose of this paper is to explore the effectiveness of these disclosure requirements. Design/methodology/approach The authors draw on data obtained from a random sample of 120 ASX-listed company annual reports across two time periods: 2009 and 2012 (before and after the change in the Recommendations). Findings Although findings indicate that there has been some change, especially in the more visible companies (ASX200), many of the changes appear to be largely superficial with a continued focus on the business case perspective. Social implications While the disclosure recommendations have the potential to be a driver in addressing gender inequity, the findings of this paper indicate that without deep change at the organisational level, requiring listed companies to disclose on gender diversity may have little impact, with the focus remaining on the business case and business as normal. Originality/value This paper contributes to the literature on gender diversity in the boardroom and the effect of disclosure. The empirical findings contribute to an understanding of the diversity Recommendations within the ASX Corporate Governance Principles and Recommendations, but in doing so, it calls for deeper organisational cultural change if real change is to take effect.

Evaluating profitability strategies and the determinants of the risk performance of sectoral and banking institutions

2018 ◽  
Vol 34 (3) ◽  
pp. 174-186 ◽  
Author(s):  
Walter Amedzro St-Hilaire ◽  
Patrick Boisselier
Keyword(s):  
Fixed Effects ◽  
Banking Sector ◽  
Risk Measures ◽  
Relevant Literature ◽  
Generalized Least Squares ◽  
Loan Loss ◽  
Content Type ◽  
Explanatory Variables ◽  
Loan Loss Provisions ◽  
Banking Institutions

Purpose The purpose of this paper is to evaluate the need to incorporate the loan loss provisions (LLPs) and risk measures in order to examine the repercussions on advancing approach and profitability. Design/methodology/approach The study investigates the effect of explanatory variables on profitability and advancing approach of the banks. The variables used in this study were determined, based on the review of relevant literature and established according to the availability of data for measurement purposes. Inspired by previous research, Hausman test is used in this study to determine whether a random or fixed effects generalized least squares model is best. The linear regression model is applied to strongly balanced panel data obtained from the ten commercial banks. Findings The findings demonstrate that Nigerian banking sector considers LLPs in terms of its decision making of advancing approach, while proper inclusion of credit, market and operational risk is more important for South Africa’s banks rather than the maintenance of provisions. Originality/value Moreover, the credit risk proves to be more needed factor of consideration for Nigerian rather for South African banks. This is an answer to the strong economy of South Africa as compared to Nigeria and more chances of default faced by Nigerian banks.

scholarly journals Boardroom gender diversity and intellectual capital efficiency: evidence from China

2017 ◽  
Vol 29 (4) ◽  
pp. 590-615 ◽  
Author(s):  
Muhammad Nadeem ◽  
Tracy-Anne De Silva ◽  
Christopher Gan ◽  
Rashid Zaman
Keyword(s):  
Intellectual Capital ◽  
Unobserved Heterogeneity ◽  
Gender Diversity ◽  
Value Added ◽  
Least Square ◽  
Method Of Moment ◽  
Corporate Structure ◽  
Content Type ◽  
Listed Firms ◽  
The Relationship

Purpose This paper aims to investigate the relationship between boardroom gender diversity and intellectual capital (IC) efficiency in China – while the previous literature focuses only on traditional accounting-based performance measures such as return on assets or Tobin’s Q. Design/methodology/approach A well-developed Arrelano–Bond generalised method of moment (GMM) is applied to account for endogeneity – mainly because of simultaneity and unobserved heterogeneity. Moreover, this study uses an adjusted-value added intellectual coefficient (VAIC) model to measure the IC efficiency of 906 Chinese listed firms for 2010-2014. Findings The empirical analysis shows a significant relationship between gender diversity and IC efficiency, in static ordinary least square estimation, but this disappears when endogeneity is accounted for using dynamic GMM. This insignificant relationship remains consistent, even when two alternative proxies of gender diversity, i.e. the Blau index and the women dummy, are used. Practical implications This study provides some useful insights into the traditional Chinese corporate structure where females cannot use their powers to bring corporate changes in firms. The findings show that gender-related stereotypical attitudes continue to exist in China. The regulators, therefore, should look into strengthening gender related regulations – which are currently non-existent in China. Originality/value This is the first study of its kind to investigate the relationship between gender diversity and IC efficiency in China using the A-VAIC model and GMM to mitigate endogeneity.

Sustainability reporting and firm’s performance

2019 ◽  
Vol 69 (3) ◽  
pp. 431-445
Author(s):  
Amina Buallay
Keyword(s):  
Banking Sector ◽  
Manufacturing Sector ◽  
Market Performance ◽  
Sustainability Reporting ◽  
Return On Assets ◽  
Content Type ◽  
Return On Equity ◽  
Pooled Data ◽  
Independent Variable ◽  
The Impact

Purpose The purpose of this paper is to provide a comparison between manufacturing and banking sectors with regards to the level of sustainability reporting (environmental, social and governance (ESG)) and its impact on operational, financial and market performance. Design/methodology/approach The research is quantitative, based on pooled data analysis of 932 manufactures and 530 banks listed on 80 countries for ten years from 2008 to 2017 ending up with 11,705 observations. A multivariate model is used to investigate the impact of sustainability reporting (ESG) on a firm’s performance. The theoretical model is built on agency, legitimacy, resources and stakeholders’ theories. The practical model is built on independent variable (ESG) and the dependent variables (return on assets, return on equity and Tobin’s Q). Findings The findings deduced from the empirical results on one hand demonstrated that ESG positively affect the operational, financial and market performance in the manufacturing sector. However, on the other hand, the ESG negatively affect the operational, financial and market performance in the banking sector. Originality/value This research makes a contribution to the scarce literature and compares the level of sustainability reporting and its impact on performance in both the manufacturing and banking sector which are two of the major and important sectors in the global financial markets.

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