scholarly journals Board of Director Diversity and Corporate Performance: The Case of South Korea

2017 ◽  
Vol 18 (2) ◽  
pp. 39-58
Author(s):  
Hannah Jun ◽  
Hyojin Kim
Keyword(s):  
Corporate Governance ◽  
Boards Of Directors ◽  
Corporate Performance ◽  
Gender Diversity ◽  
Future Research ◽  
Local Market ◽  
Corporate Boards ◽  
Board Diversity ◽  
Board Of Director ◽  
Area Of Concern

Recent corporate governance scandals (such as those at Uber) have reemphasized the importance of proper oversight and monitoring to ensure sustainable corporate performance. While the issue of how to improve corporate governance is not a new one, we have seen a resurgence of interest in whether diversity – particularly at the board of director level – improves this oversight function and, ultimately, corporate performance. This paper contributes to the academic discussion on board of director diversity with a focus on gender diversity and introduces Korea as a subject of analysis given that corporate governance remains a key area of concern for the local market and that, despite having had a female president in its relatively short democratic history and launching the WomenCorporateDirectors Korea branch in 2016, it ranks last among OECD (Organisation for Economic Co-operation and Development) member states in terms of female representation on corporate boards. We contribute to the academic debate on the relationship between gender diversity on corporate boards and corporate performance by undertaking a comprehensive literature review on board diversity and corporate performance, introducing data on Korean boards of directors and generating testable hypotheses for future research.

scholarly journals Board Diversity: More Than a Gender Issue?

2015 ◽  
Vol 20 (1) ◽  
pp. 123 ◽  
Author(s):  
Michael Adams
Keyword(s):  
Corporate Governance ◽  
Gender Diversity ◽  
Governance Structure ◽  
Share Price ◽  
Corporate Boards ◽  
Board Diversity ◽  
The World ◽  
The Usa ◽  
The 1960S ◽  
The Right

There has been extensive research conducted on the importance of corporate governance around the world. The research seems to demonstrate that, regardless of whether corporations are based in common law or civil code systems, their longevity and sustainability arise from good corporate governance. However, the evidence does not clearly demonstrate a correlation between a particular organisation’s governance structure and practices and its share price. Around the world the question of board diversity is gaining in importance. The beginning of the debate in the 1960s centred on gender. While it is essential to conduct a debate on gender diversity, other aspects of diversity should also be considered. Race, culture and even age may have a direct impact on the performance of a board. Australian companies, particularly those listed on the ASX, have a poor record of instituting any type of diversity. The USA and European Union have a much wider range of policies to promote diversity on corporate boards. The key question is how best to regulate to promote diversity across gender, race, culture and age. The historical approach of regulating diversity by setting targets and requiring disclosure does not seem to have delivered substantial change. Is it the right time to impose mandatory requirements, or are there other alternative strategies? Without doubt change is required, but there will be opposition.

A social capital view of women on boards and their impact on firm performance

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Erin Oldford ◽  
Saif Ullah ◽  
Ashrafee Tanvir Hossain
Keyword(s):  
Social Capital ◽  
Firm Performance ◽  
Ethnic Diversity ◽  
Gender Diversity ◽  
Negative Relationship ◽  
Future Research ◽  
Corporate Boards ◽  
Board Diversity ◽  
Content Type ◽  
Board Gender Diversity

PurposeThe objective of this paper is to leverage a two-sided view of social capital to develop a model of board gender diversity and firm performance using social capital data from Northeast Regional Center of Rural Development.Design/methodology/approachThe authors examine a large sample of 2,322 US publicly listed firms over the period 1996 to 2009. The final sample consists of 14,634 firm-year observations.FindingsThe authors find that when a firm's social network is not supportive of gender diversity, corporate boards have lower levels of female representation. The strength of a social network's social ties exacerbates the relationship between social capital and board gender diversity. The authors also report a negative relationship between female board membership and firm performance in social networks that are not pro-diversity. Robustness tests reveal that the authors’ social capital view of board diversity also applies to board ethnic diversity.Research limitations/implicationsThis study focuses primarily on blue chip firms due to data constraints. It will be interesting for future researchers to investigate a broader spectrum of firms from a broader perspective of diversity beyond the study’s gender and ethnicity findings. Furthermore, this study assesses the US context, and future research could investigate firm sociability in other national contexts.Practical implicationsThis study contributes new insights to the discourse on gender diversity on corporate boards which stand to inform both policy and practice. The results of the study can inform the position of an industry association on board gender diversity, with guidance on how messaging across networks can be more effective should it account for the hidden bias that the authors uncover in the current study. From a manager's perspective, this study can help those managers and boards trying to enhance board gender diversity by providing a more complete understanding of the factors that can limit progress.Originality/valueThis study contributes a social capital view of board gender diversity to the growing literature of corporate governance, board diversity and local environmental influences on corporate policies.

scholarly journals Measuring Board of Director Performance: An Overview and Future Research Opportunities1

2016 ◽  
Vol 1 (2) ◽  
pp. 39-43
Author(s):  
John Nowland
Keyword(s):  
Boards Of Directors ◽  
Future Research ◽  
Corporate Boards ◽  
Board Meeting ◽  
Developed Markets ◽  
Board Of Director

This article provides a brief overview of the literature on board of director performance, highlighting the difficulties in attempting to directly measure the performance of boards of directors and how various studies have tackled this challenge. As an illustration, I show that two current measures of board of director performance, board meeting activity and director attendance, suggest that the boards of Asian firms do not compare favorably to the boards of firms from developed markets. Suggestions for future research on the performance of corporate boards are provided, as well as implications for board of director practices in Asia.

scholarly journals Diversity in the board of directors and good governance practices

2020 ◽  
Vol 9 (2) ◽  
pp. 97
Author(s):  
Álvaro Melón-Izco ◽  
Francisco J. Ruiz-Cabestre ◽  
M. Carmen Ruiz-Olalla
Keyword(s):  
Corporate Governance ◽  
Board Of Directors ◽  
Boards Of Directors ◽  
Good Governance ◽  
Gender Diversity ◽  
Positive Influence ◽  
Board Diversity ◽  
Corporate Governance Mechanisms ◽  
Governance Practices ◽  
The Board Of Directors

Motivated by the debate on the adequacy of the composition of boards of directors, we examine the effect that board diversity has on corporate governance performance in Spain, analysing gender diversity, diversity of director types and tenure diversity. The findings reveal that diverse boards of directors have a positive influence on good governance practices,improving the efficiency of corporate governance mechanisms. These results could be interesting for practitioners and regulators.

scholarly journals Corporate governance and remuneration: a bibliometric analysis

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Jinnatul Raihan Mumu ◽  
Paolo Saona ◽  
Hasibul Islam Russell ◽  
Md. Abul Kalam Azad
Keyword(s):  
Corporate Governance ◽  
Bibliometric Analysis ◽  
Boards Of Directors ◽  
Gender Diversity ◽  
Research Field ◽  
Future Research ◽  
Top Management ◽  
Outside Directors ◽  
Governance System ◽  
Content Type

PurposeThis study aims to pinpoint gaps in the literature on corporate governance and remuneration by producing a comprehensive bibliometric review for the period 1990–2020.Design/methodology/approachBibliometric analysis is the quantitative study of the bibliographic material in a specific research field. It allows an analyst to classify that material by paper, journal, author, indexation, institution or country, among other possibilities. This study reviews a total of 298 Web of Science–indexed journal articles on corporate governance and top-management remuneration schemes.FindingsThe authors find five distinct research strands: (1) firm performance and remuneration of top management, (2) the remuneration and independence of boards of directors and the efficiency of boards of directors as a governance system, (3) outside-director remuneration and the efficiency of outside directors as a monitoring system, (4) director remuneration and the corporate governance of companies and (5) the role of ownership structure and top managers' compensation schemes as corporate-governance tools. The authors identify gaps in the literature and avenues for future research for each of these strands.Practical implicationsThe authors’ findings have implications for board diversity (e.g. gender diversity), remuneration policy for top-level managers and governance issues (independent directors, separation of ownership with control). This study is the only one to summarize the key topics on which top research has been focused and can be broadly used for corporate governance management perspective.Originality/valueThis paper provides an overview of how the literature on corporate governance and remuneration has developed and a synopsis of the most influential and most productive authors, countries and journal sources. It creates an opportunity for other researchers to focus on this area. This study will also serve as a foundation for future meta-analyses.

scholarly journals Gender Diversity on the Board of Director and Firm Performance: Agency Theory Perspective

2021 ◽  
Vol 12 (2) ◽  
Author(s):  
Lela Hindasah ◽  
Mugi Harsono
Keyword(s):  
Corporate Governance ◽  
Selection Process ◽  
Gender Diversity ◽  
Future Research ◽  
Company Performance ◽  
Female Directors ◽  
Board Of Director ◽  
Governance Practices ◽  
And Performance ◽  
Board Gender Diversity

Research aims: This paper provides a literature review on the influence of board of directors' gender diversity on financial and non-financial performance.Design/Methodology/Approach: This research used the content analysis identified from previous studies based on the proxies employed. The article selection process was carried out from reputable international journals published in 2017-2020, resulting in 50 articles discussing board gender diversity and performance.Research findings: This study's results are a conceptual model and future research developments. Research related to female directors and performance has been much carried out. Hence, future research suggests correlating female directors based on monitoring characteristics, human capital board, and demographics. The influence of gender diversity on non-financial performance is also rarely studied.Theoretical contribution/Originality: Identification of gender diversity attributes associated with financial and non-financial performancePractitioner/Policy implication: This study provides valuable information for policymakers or regulators to refine future corporate governance policies and increase understanding of the relationship between corporate governance practices and company performance as measured by financial and non-financial performance.Research limitation/Implication: This study is based on only 50 articles in the last four years.

Top Management Gender Diversity and Internationalisation in Different Institutional Contexts: Evidence from Germany and Poland

2021 ◽  
Vol 26 (4) ◽  
pp. 706-737
Author(s):  
Anja Küpper ◽  
Tobias Dauth
Keyword(s):  
Work Experience ◽  
Gender Diversity ◽  
Practical Interest ◽  
Top Management Teams ◽  
Management Teams ◽  
Future Research ◽  
Top Management ◽  
Corporate Boards ◽  
Board Diversity ◽  
Country Level

The diversity of top management teams is a topic of increasing scholarly and practical interest. It is argued that globalisation requires international operating firms to staff their management teams with international and diverse members. We investigate the influence of institutional environments on gender and internationality diversity in boards to shed light on the question “Why do top management teams look the way they do?” Our sample includes top management team members of the largest stock listed firms in Germany and Poland. The sample consists of 60 firms and 852 individuals from 2019. Our findings suggest that the presence of non-natives and women on corporate boards and the international orientation of board members, in terms of education, work experience and directorships, are attributable to national institutional systems. While Germany´s top managers are becoming increasingly internationally diverse and have increasing gender diversification, the figures for Poland are also increasing, but on a much smaller scale. We argue that country-level institutions play an important role in shaping the diversity of corporate boards. Future research should place more emphasis on the external national environment when investigating board diversity.

scholarly journals A Bibliometric Review of Global Research on Corporate Governance and Board Attributes

2019 ◽  
Vol 11 (12) ◽  
pp. 3428 ◽  
Author(s):  
Chenglong Zheng ◽  
Roy Kouwenberg
Keyword(s):  
Corporate Governance ◽  
Boards Of Directors ◽  
Corporate Sustainability ◽  
Gender Diversity ◽  
Practical Importance ◽  
Future Research ◽  
Top Executives ◽  
Strategic Direction ◽  
Bibliometric Review ◽  
Global Research

This paper conducts a bibliometric review of global research on the role of boards of directors in corporate governance. Boards of directors play a crucial role in the corporate governance of publicly traded firms, as they monitor the performance of top executives on behalf of shareholders and help to set the firm’s overall strategic direction. Our review documents most influential articles, authors, and journals in this area. The bibliometric analysis highlights the multi-disciplinary nature of research on boards of directors, covering the fields of finance and economics, accounting and auditing, and management and strategy. Furthermore, co-citation analyses reveal the core theoretical and conceptual articles on agency theory and ownership structure that provide the foundation for research on corporate governance and boards of directors. The review shows that, despite its practical importance, studies on how boards of directors contribute to corporate sustainability represent only a small fraction of the articles in this literature. This highlights the need for more research on this particular topic in the coming years. Moreover, the keyword co-occurrence analysis suggests other emerging research topics in the BDCG knowledge base are in the areas of gender diversity, CSR, and innovation, which pinpoints possible future research directions for scholars in the field.

The Corporate Governance of Environmental Sustainability: A Review and Proposal for More Integrated Research

2021 ◽  
pp. 014920632199121
Author(s):  
Ruth V. Aguilera ◽  
J. Alberto Aragón-Correa ◽  
Valentina Marano ◽  
Peter A. Tashman
Keyword(s):  
Corporate Governance ◽  
Environmental Sustainability ◽  
Boards Of Directors ◽  
Global Dimension ◽  
Top Management Teams ◽  
Future Research ◽  
Environmental Initiatives ◽  
Integrative Framework ◽  
Integrated Research ◽  
Systematic Understanding

As corporations’ environmental impact comes under greater scrutiny by global financial, regulatory, and societal stakeholders, management scholars have increasingly focused on the role of corporate governance as a tool for driving environmental initiatives. Still, we lack a comprehensive and systematic understanding of this emergent body of inquiry and a holistic agenda for future research. To address this gap, our integrative framework relates the key corporate governance actors to environmental sustainability outcomes from the extant literature and highlights its main methodological approaches and theoretical arguments. Our framework provides a critical analysis of what we know and points to the knowledge gaps around owners, boards of directors, CEOs, top management teams, and employees as corporate governance actors. We then highlight limitations in the existing literature as significant opportunities for further research to resolve its ambiguous conceptualizations of environmental sustainability constructs, various methodological and theoretical challenges, incomplete engagement with the global dimension of environmental sustainability, and limited analysis of how corporate governance actors may interact to shape environmental sustainability outcomes. We conclude by proposing novel approaches for addressing these issues, which we believe could generate a better way forward on studying the corporate governance of environmental sustainability.

scholarly journals Differentiating control, monitoring and oversight

2017 ◽  
Vol 30 (8) ◽  
pp. 1867-1894 ◽  
Author(s):  
Margaret M. Cullen ◽  
Niamh M. Brennan
Keyword(s):  
Boards Of Directors ◽  
Role Theory ◽  
Legal Responsibility ◽  
Primary Role ◽  
Investment Fund ◽  
Corporate Boards ◽  
Content Type ◽  
Board Of Director ◽  
Expectations Gap ◽  
Board Type

Purpose Boards of directors are assumed to exercise three key accountability roles – control, monitoring and oversight roles. By researching one board type – investment fund boards – and the power relations around those boards, the purpose of this paper is to show that such boards are not capable of operating the three key roles assumed of them. Design/methodology/approach The authors conducted 25 in-depth interviews and a focus group session with investment fund directors applying a grounded theory methodology. Findings Because of their unique position of power, the authors find that fund promoter organisations (that establish and attract investors to the funds) exercise control and monitoring roles. As a result, contrary to prior assumptions, oversight is the primary role of investment fund boards, rather than the control role or monitoring role associated with corporate boards. The findings can be extended to other board-of-director contexts in which boards (e.g. subsidiary boards, boards of state-owned entities) have legal responsibility but limited power because of power exercised by other parties such as large shareholders. Practical implications Shareholders and regulators generally assume boards exercise control and monitoring roles. This can lead to an expectations gap on the part of shareholders and regulators who may not consider the practical realities in which boards operate. This expectations gap compromises the very objective of governance – investor protection. Originality/value Based on interviews with investment fund directors, the authors challenge the control-role theory of investment fund boards of directors. Building on our findings, and following subsequent conceptual engagement with the literature, the authors differentiate control, monitoring and oversight roles, terms which are often used interchangeably in prior research. The authors distinguish between the three terms on the basis of the level of influence implied by each.

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