Does gender diversity in supervisory boards affect gender diversity in management boards in Germany? An empirical analysis

2021 ◽  
pp. 239700222199714
Author(s):  
Dennis Fleischer
Keyword(s):  
Fixed Effects ◽  
Structural Equation ◽  
Gender Diversity ◽  
Supervisory Board ◽  
Board Members ◽  
Governance System ◽  
Management Board ◽  
Supervisory Boards ◽  
Gender Quota ◽  
The Impact

Social aspects like gender diversity in the boardroom are becoming increasingly relevant and are a popular topic of public debate in the context of gender equality in business. However, there is little clarity about the potential spill-over effects of gender diversity. Both theory and empirical results have led to ambiguous conclusions with respect to the effect of gender diversity in the supervisory board on gender diversity in the management board. In addition, it is not clear whether the German gender quota legislation positively affects this relationship. This study analyses whether gender diversity in the supervisory board supports the gender diversity of the management board, and whether this relationship is affected by the gender quota legislation, focusing on the unique case of Germany. To cope with endogeneity concerns, this study employs a cross-lagged panel model with fixed effects using maximum likelihood structural equation modelling. The results of the analysis of the impact of the number of female supervisory board members on the number of female management board members do not support the view of positive spill-over effects of gender diversity in the environment of the German two-tier corporate governance system. Furthermore, this study finds no evidence of an effect of the German gender quota on this relationship. JEL Codes G38, M12, M14, M51

scholarly journals Women with STEM qualifications on supervisory boards. Does a high women quota in supervisory boards influence firm success?

2020 ◽  
Vol 7 (1) ◽  
pp. 28-46
Author(s):  
Bettina Binder ◽  
Keyword(s):  
Capital Market ◽  
Supervisory Board ◽  
Original Study ◽  
Executive Board ◽  
Management Board ◽  
Supervisory Boards ◽  
Conducting Research ◽  
Gender Quota ◽  
The Impact ◽  
The Relationship

Many large companies in Europe include mainly men in supervisory boards and the women quota is often lower than 20 %. In Germany an optional women quota of 30 % in supervisory boards was proposed for capital market oriented companies in 2016. Some assume that without a gender quota the earnings of enterprises would shrink as male and female members in supervisory teams do not work in such a harmonized and structured way. Others think that a women quota in supervisory boards should be requested by law and should not remain optional. In this context, conducting research and analyzing the impact of the women’s presence in supervisory boards on the success of companies appear as a necessary topic. The present article looks at the companies of EURO STOXX 50 in the year 2015 and their success and tries to establish whether this success can be related to the percentage of female members in supervisory positions. It replicates in this way the study of Binder, Alonso-Almeida and Bremser (2016) which analyzed the relationship between female’s representation in the management board (executive board) and firm performance (measured by earnings before taxes – EBT) of the EURO STOXX 50 companies in 2014. It is in the same time an extension of the original study as the supervisory board is brought under scrutiny and a closer look at women qualifications, and especially women with STEM qualifications is provided.

Does the gender quota law affect bank performances? Evidence from Italy

2020 ◽  
Vol 20 (6) ◽  
pp. 1135-1158
Author(s):  
Romilda Mazzotta ◽  
Olga Ferraro
Keyword(s):  
Fixed Effects ◽  
Gender Diversity ◽  
Estimation Model ◽  
Board Diversity ◽  
Content Type ◽  
Female Directors ◽  
Negative Effect ◽  
And Gender ◽  
Gender Quota ◽  
The Impact

Purpose This study aims to examine the impact of an increasing board diversity on the performance of Italian listed banks for the period 2008–2014, taking into account the effects of the implementation of gender quota laws in Italy. The study also investigates the effects of this potential relationship during the crisis that Italy had to cope with since 2011, as well as the potential impact of female directors and their roles on bank boards. Design/methodology/approach To verify this relationship, the study uses a panel sample of 22 listed banks and applies fixed effects with the Driscoll-Kraay error. Considering the shareholders’ perspective, bank performance (BP) is measured by return on average equity. The robustness of results is verified through return on average assets, Tobin’s Q (a market measure from investors/stakeholders’ perspective) and an alternate estimation model, i.e. GMM. Findings The findings highlight a positive relationship between the performance accounting measures and gender diversity, a non-neutral impact of the presence of female directors on boards and a significant and negative effect on market measures. Research limitations/implications The results of the study, as far as accounting measures are concerned, support managerial and legislative efforts toward more gender-balanced boards and the appointment of female directors in executive or independent roles. As per market measures, the results suggest that the presence of women on boards should be considered advantageous in terms of value, so that the market can finally appreciate diverse bank boards. Originality/value First, previous studies did not provide exhaustive results to document the proposed relationship and did not examine this relationship during a financial crisis. Second, the role of female directors on boards is also taken into account. Third, the study highlighted that BP is a multi-dimensional construct, with accounting and market metrics being its distinct dimensions.

scholarly journals Impact of supervisory board members’ professional background on banks’ risk-taking

2015 ◽  
Vol 13 (1) ◽  
pp. 1210-1227 ◽  
Author(s):  
Dennis Froneberg ◽  
Florian Kiesel ◽  
Dirk Schiereck
Keyword(s):  
Risk Taking ◽  
Supervisory Board ◽  
Bank Risk ◽  
Board Members ◽  
Bank Performance ◽  
Risk Return ◽  
Financial Expertise ◽  
Supervisory Boards ◽  
Regional Banks ◽  
The Impact

This paper examines the impact of financial expertise of supervisory board members on the risk-return profile of 200 German regional cooperative banks during the period 2004–2009. The results show that with more financial expertise the bank performance does not improve, but bank risk increases. These findings induce concerns that mandating financial expertise on boards is not necessarily beneficial for the risk-return profile of regional banks. We suggest that overconfidence of entrepreneurs in the supervisory boards leads to this unfavorable development since they represent the largest fraction of professionals within the sample.

Threshold capital structure and predictors of choice between distribution strategies

2021 ◽  
Vol 14 (1) ◽  
Author(s):  
Mpinda F. Mvita ◽  
Leon M. Brummer ◽  
Hendrik P. Wolmarans
Keyword(s):  
Capital Structure ◽  
Fixed Effects ◽  
Structural Equation ◽  
Multinomial Logistic Regression ◽  
Threshold Effect ◽  
Equation Model ◽  
Managerial Implication ◽  
Dividend Payments ◽  
Value Add ◽  
The Impact

Orientation: The determination of a threshold capital structure and company specific attributes as predictors of choice between distribution strategies is crucial in the creation of shareholders’ wealth.Research aim: To investigate whether the change in regimes given a threshold capital structure maximises distribution strategies over the period 1990–2017 and 1999–2017. In addition, the study examined how the capital ratio and company specific attributes were used in the process of choosing between distribution strategies.Motivation for the study: The need to determine the impact of the capital ratio within different regions on distribution strategies motivated this study. In addition, the majority of studies on predictors of choice between distribution strategies have ignored the dual and the no distribution policy alternatives relative to share repurchases.Research approach/design and method: all the data used in this research were sourced from the Iress data bases. The research employed an advanced panel threshold regression estimation and a multinomial logistic regression (pooled and fixed effects using the generalised structural equation model).Main findings: Firstly, over the period 1990–2017 the empirical results revealed the existence of a single threshold effect between the debt-to-equity ratio and the dividend payments, and a double threshold effect between the total debt based on the book value and the dividend payment. Secondly, the choice between distribution strategies was driven by company specific attributes.Practical/managerial implication: These findings provide useful insights to South African managers for formulating and maximizing pay-out decisions.Contribution/value-add: The study contributes to the scant body of knowledge on the effect of threshold capital ratio and company specific attributes on distribution strategies.

scholarly journals The Effect of Board Diversity on Firm Performance: Evidence from Chinese L isted Companies

2020 ◽  
Vol 13 (1) ◽  
pp. 9-33
Author(s):  
Waqas Bin Khidmat ◽  
Muhammad Ayub Khan ◽  
Hashmat Ullah
Keyword(s):  
Firm Performance ◽  
Fixed Effects ◽  
Gender Diversity ◽  
Diversity Education ◽  
Method Of Moment ◽  
Fixed Effects Model ◽  
Foreign National ◽  
Board Diversity ◽  
Listed Firms ◽  
The Impact

Drawing on the upper echelon’s theory and the resource-based theory, the purpose of the study is to examine the impact of board diversity on the Chinese A-listed firm’s performance. The data were collected from A-listed companies registered in Shanghai SSE 180 and the Shenzhen 100 from the period 2007 to 2016. Since some of the companies got listed after 2007, our data is unbalanced. Both fixed effects model and a more robust dynamic panel generalised method of moment estimation are applied to cater the endogeneity problem. After controlling for several firms and board characteristics, we found gender diversity, education diversity and foreign national diversity measured through Blau index have a positive and significant effect on the Chinese A-listed firm performance for both the accounting and market measures. The age diversity and independence diversity seem not to be an essential determinant of firm performance in Chinese A-listed firms. The results supported the efficient monitoring hypothesis and managerial networking theory, which suggests that the director’s diversity reduces the managerial entrenchment on the one hand, while, through networking, increases the resources of the firms on the other side.

The German Supervisory Board on its Way to Professionalism

2010 ◽  
Vol 11 (2) ◽  
pp. 115-158 ◽  
Author(s):  
Jan Lieder
Keyword(s):  
Corporate Governance ◽  
Internal Control ◽  
Supervisory Board ◽  
Decision Making Process ◽  
European Level ◽  
Governance System ◽  
Management Board ◽  
Corporate Governance System ◽  
Flow Of Information ◽  
Board System

The paper shows how the efficiency of the German supervisory board has been significantly improved in the last decade. These legal changes made the supervisory board climb to a higher position of power. In particular, the supervisory board is now significantly involved in the decision-making process on a company's overall strategic concept and on management decisions of fundamental importance. This emphasizes the future-oriented monitoring obligation of the supervisory board, which gained much more importance in the last decade. Furthermore, the new provisions increased the flow of information from the management board to the supervisory board, and they facilitated the monitoring efficiency of every single supervisory board member. In addition, several important changes improved the cooperation of supervisory board and auditors. The most recent changes strengthened the supervisory board's responsibility with regard to internal control and risk management.The vest majority of those changes in the German supervisory board system are very welcome. However, the current regime of German codetermination as well as the excessive size of the supervisory board has to be changed. Under the important developments on the European level, the time has come to act now in this direction. The advocated concept of codetermination by consensus provides a solid basis for more flexibility in the rigid German corporate governance system. It is also desirable to further limit the size of the supervisory board to no more than twelve members. Finally, the efficiency of the corporate governance system would be improved by allowing enterprises to choose between a one-tier and a two-tier board system.

Auswirkungen von Mehrfachmandaten deutscher Vorstands- und Aufsichtsratsvorsitzender auf den Unternehmenserfolg / The Impact of Multiple Board Memberships of CEOs and Chairmen of Supervisory Boards on Corporate Performance in Germany

2010 ◽  
Vol 230 (5) ◽  
Author(s):  
Benjamin Balsmeier ◽  
Achim Buchwald ◽  
Heiko Peters
Keyword(s):  
Panel Data ◽  
Corporate Performance ◽  
Supervisory Board ◽  
Data Set ◽  
Supervisory Boards ◽  
External Management ◽  
The Impact ◽  
Public Criticism

SummaryMembers of management boards as well as supervisory boards often attract public criticism when they are simultaneously active in several other boards. We use a panel data set of the biggest German corporations for the period from 1996-2006 to estimate the impact of multiple board memberships of the CEO and the chairman of the supervisory board on corporate performance. The results suggest a positive and inverse U-shaped relation between the number of external supervisory board seats of the CEO and corporate performance. Chairmen of supervisory boards who simultaneously serve on external management boards tend to improve the performance of the controlled firm. Further external supervisory board seats of the chairman of a supervisory board do not seem to have any influence on corporate performance, though.

Mandated Representation: Exploring the Consequences of Gender Quota Design on Parliamentary Activity

2020 ◽  
Author(s):  
Eva-Maria Euchner ◽  
Elena Frech
Keyword(s):  
Negative Binomial ◽  
Gender Diversity ◽  
Negative Binomial Regression ◽  
Gender Quotas ◽  
Binomial Regression ◽  
Interdisciplinary Framework ◽  
Research Gap ◽  
And Gender ◽  
Gender Quota ◽  
The Impact

Abstract Although the scholarship on legislative behaviour widely agrees that electoral rules determine parliamentary activities, surprisingly little is known on the impact of gender quotas. We contribute to this research gap by developing an innovative interdisciplinary framework and by exploring it based on a unique dataset on varying gender quota designs throughout EU countries and parties running for the 7th term of the European Parliament (2009–2014). Based on the scholarship on gender diversity in management teams and the research on gendered processes in political parties, we argue that especially mandated gender quotas stimulate processes of social categorisation, intergroup biasing and competition due to a normative mis-fit between conceptions of gender equality and gender quotas, which in turn influences coordination and communication and hence, parliamentary activity more generally. Combining negative-binomial regression models and expert interviews, we indeed find that mandated gender quotas promote ‘individual’ parliamentary activities (e.g. speeches) and tend to impede ‘collaborative’ parliamentary activities (e.g. reports).

scholarly journals Classical and modern concepts of corporate governance (Stewardship Theory and Agency Theory)

Management ◽  
2015 ◽  
Vol 19 (2) ◽  
pp. 84-92 ◽  
Author(s):  
Beata Glinkowska ◽  
Bogusław Kaczmarek
Keyword(s):  
Corporate Governance ◽  
Agency Theory ◽  
Supervisory Board ◽  
Stewardship Theory ◽  
Social Meaning ◽  
Modern Approach ◽  
Management Board ◽  
Governance Systems ◽  
Supervisory Boards ◽  
A Company

Summary The main issues in efficiency of a company as an organisation are relations between the Supervisory Board and the Management Board of a company, and the methods of functioning of Supervisory Boards in governance systems of a company. The classical and modern approach to the role, place, and importance of corporate governance presented in this article, is yet another prompt to continue searching for the optimum in the organisational, economical, and social meaning.

scholarly journals Board committee practices in Ukraine

2005 ◽  
Vol 3 (1) ◽  
pp. 114-116 ◽  
Author(s):  
Alexander Kostyuk
Keyword(s):  
Corporate Governance ◽  
Audit Committee ◽  
Supervisory Board ◽  
The State ◽  
Board Members ◽  
Governance Mechanisms ◽  
Management Board ◽  
Corporate Governance Mechanisms ◽  
Audit Commission ◽  
Financial Transactions

International board practice concerning establishing committees on the board is still not spread in the Ukraine. The state obliged Ukrainian joint stock companies to establish an audit commission. But the commission is not on the supervisory board. It is not an integral part of the board. Members of the audit commission are prohibited to be members of the supervisory board at the same time. Although the audit commission reports to the supervisory board, objectives of the audit commission are narrowed only to controlling financial transactions executed by the management board. Therefore, it is worth of establishing an audit committee on the supervisory board with a broader spectrum of functions and equipped with the deepest knowledge on corporate governance mechanisms.

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