scholarly journals Diversity in Board of Directors: Review of Diversity as a Factor to Enhance Board Performance

2016 ◽  
Vol 9 (33) ◽  
pp. 88-101 ◽  
Author(s):  
Alexander Pechersky
Keyword(s):  
Board Of Directors ◽  
Empirical Studies ◽  
Gender Diversity ◽  
Added Value ◽  
Gender Quotas ◽  
Company Performance ◽  
Business World ◽  
Corporate Influence ◽  
Negative Effect ◽  
Board Performance

Abstract In light of growing corporate influence in the business world and thus increasing further need to improve framework of corporate governance for shareholders’ protection, diversity is examined as a necessary factor to enhance monitoring and leadership functions of board of directors. This article analyses empirical studies with samples on various countries in order to examine effect of board composition and diversity on primary responsibilities of Board of Directors. Author is providing theoretical overview of diversity benefits and practical perspective of gender, qualifications, and background diversity in board performance. Our results show an added value of gender diversity to company performance in social and healthcare industries. Furthermore, author shows a rather negative effect of gender quotas. This study sheds a light on empirical researches and a need to include additional cultural factors called country readiness factors.

scholarly journals Pengaruh Keragaman Dewan Direksi Terhadap Kinerja Keuangan Perusahaan

IQTISHODUNA ◽  
2019 ◽  
Vol 15 (2) ◽  
pp. 115-128
Author(s):  
Roika Roika ◽  
Ubud Salim ◽  
Sumiati Sumiati
Keyword(s):  
Financial Performance ◽  
Board Of Directors ◽  
Firm Value ◽  
Stock Exchange ◽  
Gender Diversity ◽  
Company Performance ◽  
Firm Financial Performance ◽  
The Board Of Directors ◽  
Negative Effect ◽  
And Gender

In implementing corporate governance, the diversity of the board of directors is an essential component. The most frequently observed diversity of the board is gender diversity, and along with the increasing internationalization of business today, the nationalities diversity is also one of the interesting types of analysis to be analyzed. The purpose of this study is to investigate the influence of the diversity of the board of directors on the performance of the company. The company performance examined in this study is the firm financial performance measured by using ROE and firm value measured by the Tobin's Q ratio. The population of this study are all non-financial companies listed on the Indonesia Stock Exchange in 2016-2017. Following the same selection criteria in this study, 33 sample companies were screened. The results of hypothesis testing with multiple regression indicate that only nationalities diversity influences the firm financial performance as measured by ROE. While gender diversity has a negative effect on firm financial performance as measured by ROE. And gender diversity and nationalities diversity does not affect the firm value

Women representation on boards: a South African perspective

2016 ◽  
Vol 24 (2) ◽  
pp. 211-225 ◽  
Author(s):  
Gizelle Willows ◽  
Megan van der Linde
Keyword(s):  
Corporate Governance ◽  
Financial Performance ◽  
Board Of Directors ◽  
Boards Of Directors ◽  
Critical Mass ◽  
Gender Diversity ◽  
Current Status ◽  
Company Performance ◽  
Content Type ◽  
The Board Of Directors

Purpose By looking at both theoretical and empirical findings, this study aims to investigate whether gender diversity results in improved corporate governance and financial performance for companies. Design/methodology/approach An analysis of the board composition of the Johannesburg Securities Exchange Top 40 companies as at 30 June 2013 and a comparison of the financial performance of the company were conducted. Findings Female directors were found to make up, on average, 18.78 per cent of the board of directors, with the majority of these women being in non-executive positions. Women representation appears to influence company performance positively when using accounting-based measures of performance (such as return on assets and return on equity), but negatively when using market-based measures (such as Tobin’s Q). The critical mass concept is also assessed and is found to have a positive effect. Originality/value These findings are of relevance to the boards of directors adhering to corporate governance requirements by challenging the role of women on the board of directors, as well as that of investors and those in practice, to understand the current status of women representation.

PENGARUH GOOD GOVERNANCE TERHADAP KINERJA KEUANGAN PADA PERUSAHAAN PERBANKAN YANG TERDAFTAR DI BURSA EFEK INDONESIA

2019 ◽  
Vol 5 (2) ◽  
pp. 20-28
Author(s):  
Muh Ni’am Khoosyi ◽  
Suhendro Suhendro ◽  
Yuli Chomsatu Samrotun
Keyword(s):  
Regression Analysis ◽  
Financial Performance ◽  
Board Of Directors ◽  
Good Governance ◽  
Stock Exchange ◽  
Linear Regression Analysis ◽  
Multiple Linear Regression Analysis ◽  
Company Performance ◽  
Measurement Scales ◽  
Negative Effect

The purpose of this study was to determine the effect of good corporate governance on financial performance in banking companies listed on the Indonesia Stock Exchange. The analytical method used is multiple linear regression analysis. The results showed that a) simultaneously the board of commissioners, board of directors, independent commissioners, company size had an effect on financial performance and b) partially variables X1, X2, and X3 had a positive effect on financial performance but were not significant and variable X4 had a negative effect on performance financial not significant. This means that if the number of board of commissioners, board of directors and independent commissioners is increased it will be able to cause an increase in the company's financial performance but this effect is not significant. And conversely, if the size of the company gets bigger, it will cause a decline in the company's financial performance. This should be a concern of the company, with the increasing size of the company will cause a decline in company performance. The limitation of this study is that the formulation of the regression analysis used is not appropriate because the data used have different measurement scales.

scholarly journals Effectiveness of The Board of Directors and Company Performance: Corporate Governance Perspective in Indonesia

2021 ◽  
Vol 6 (1) ◽  
pp. 17-27
Author(s):  
Ririh Dian Pratiwi ◽  
Anis Chariri
Keyword(s):  
Corporate Governance ◽  
Board Of Directors ◽  
Manufacturing Sector ◽  
Linear Regression Analysis ◽  
Multiple Linear Regression Analysis ◽  
Board Independence ◽  
Company Performance ◽  
Board Size ◽  
The Board Of Directors ◽  
Negative Effect

The purpose of this study was to determine the effect of board size, board independence, and board activity on company performance from a corporate governance perspective. This study uses a quantitative approach. IDX issuers in the manufacturing sector registered in 2017-2018 are the research population. The samples were obtained using the purposive sampling method. Based on the criteria, the samples in this study were 146 companies. This study uses multiple linear regression analysis. This study found that board size has a negative effect on ROA, but has an effect on and is positively correlated with ROE. Board independence has a positive effect on the achievement of company ROA and ROE. While the third variable, namely board activity does not affect the achievement of ROA and ROE of the company. Based on the limitations, further research is expected to be able to explore other factors that are relevant in influencing company performance during and after the COVID 19 pandemic, for example, namely external factors. Keywords: Board of Directors, Corporate Governance, Company performance

scholarly journals Keberagaman Gender Dewan Komisaris dan Direksi terhadap Kinerja Perusahaan

2020 ◽  
Vol 30 (8) ◽  
pp. 2040
Author(s):  
Sinye Polani Thoomaszen ◽  
Widi Hidayat
Keyword(s):  
Stock Exchange ◽  
Gender Diversity ◽  
Panel Regression ◽  
Company Performance ◽  
Quantitative Methodology ◽  
Analysis Techniques ◽  
The Board Of Directors ◽  
Negative Effect ◽  
Board Gender Diversity ◽  
Positive Effect

This study examined the influence of board gender diversity on the firm performance.the research sample use property and health companies listed in Indonesia stock exchange 2015-2018. total 30 companies. use quantitative methodology with panel regression data analysis techniques were used in this study. The results showed that the gender diversity of the board of commissioners did not have a positive effect on company performance (H1 was rejected) while the gender diversity of the board of directors had a negative effect on company performance (H2 rejected). SIZE and ID control variables also showed significant effect on company performance. For further research it is recommended to use two other methods such as Dummy or gender proportion to measure gender diversity so that the results can be compared, as well as more research data. Keywords: Board Gender Diversity; Firm Performance; Size; Independen Director.

scholarly journals Ownership structure, board composition and investment performance

2009 ◽  
Vol 7 (1) ◽  
pp. 120-130 ◽  
Author(s):  
Johan Eklund ◽  
Johanna Palmberg ◽  
Daniel Wiberg
Keyword(s):  
Firm Performance ◽  
Board Of Directors ◽  
Ownership Structure ◽  
Gender Diversity ◽  
Descriptive Statistics ◽  
Board Composition ◽  
Investment Performance ◽  
Listed Firms ◽  
Explanatory Variables ◽  
Negative Effect

This paper explores the relation between ownership structure, board composition and firm performance among Swedish listed firms. The descriptive statistics show that Swedish board of directors has become more diversified in terms of gender. The analysis shows that board size has a significant negative effect on investment performance. Gender diversity has a small but negative effect on investment performance, and the same holds for CEO being on the board. When incorporating all the explanatory variables into the same equation the negative effect of larger boards dilutes the effect of gender diversity and having the CEO on the board.

scholarly journals Diversity of the Board of Directors and Financial Performance of the Firms

2021 ◽  
Vol 13 (21) ◽  
pp. 11687
Author(s):  
Felipe Arenas-Torres ◽  
Miguel Bustamante-Ubilla ◽  
Roberto Campos-Troncoso
Keyword(s):  
Stock Market ◽  
Financial Performance ◽  
Board Of Directors ◽  
Boards Of Directors ◽  
Gender Diversity ◽  
Gender Quotas ◽  
Governance Practices ◽  
The Board Of Directors ◽  
And Gender ◽  
Nationality Diversity

The diversity of the board of directors continues to be a matter of concern for investors, regulators, and the general public. In this sense, the purpose of the research presented was to identify whether there is a positive and significant impact between the diverse variables of the board of directors and the financial performance of the firms. In this context, the study’s objective was to determine if the diversity in the composition of the boards of directors has a positive and significant impact on the financial performance of the companies listed in the Chilean stock market. The study considered a sample of 1106 reports on social responsibility and sustainable development between the 2015–2020 period and their respective returns. The research was descriptive-correlational, which determined the incidence of gender, nationality, and age diversity in the financial performance of the firms. The results show, in general, a low degree of gender and nationality diversity in Chilean boards. However, a positive and significant impact is observed in the commercial sector, nationality diversity, and the construction and gender diversity axis. In this regard, the study allows confirming the heterogeneity of results by linking the variables of diversity and financial performance and the importance of conducting sufficiently disaggregated studies to understand the relationship between both types of variables. Finally, this study updates the diversity levels of the board of directors for the Chilean stock market and establishes challenges for the regulator in terms of gender quotas and good corporate governance practices.

scholarly journals Reviewing role of Corporate governance regarding transactions with related parties and company performance among companies admitted into Tehran Stock Exchange

2015 ◽  
Vol 37 ◽  
pp. 45
Author(s):  
Mehran Matinfard ◽  
Mohammad Hassani ◽  
Hossein Elyasi
Keyword(s):  
Corporate Governance ◽  
Board Of Directors ◽  
Stock Exchange ◽  
Explanatory Power ◽  
Company Performance ◽  
Commercial Activities ◽  
The Board Of Directors ◽  
Negative Effect ◽  
Institutional Owners

This research reviews the role of corporate governance regarding transactions with related parties and company performance. 85 companies admitted into the TSE were studies during a six months period between 2008 and 2013. Transaction with related parties is a usual trait of commercial activities. For example, some businesses conduct their activities via subsidiary businesses, particular partnerships and related businesses. Transactions with related parties can affect financial situation, financial performance and flexibility of the business. In this research the ratio of non-executive members of the board of directors to total members, membership or non membership of the managing director in the board, size of board and shares of institutional owners have been used as corporate governance variables. Finally, Eviews and Excel software and multi variable regression were used to test the research hypothesis. Results indicate a significant correlation between transactions with related parties and returns on assets. Results also showed that by importing corporate governance variables into the model, explanatory power of model increases and negative effect of transactions with related parties on performance reduces.

scholarly journals Pengaruh Persentase dan Keberadaan Perempuan Hindu dalam Jajaran Pengurus pada Kinerja Bank Perkreditan Rakyat di Bali

2021 ◽  
Vol 31 (4) ◽  
Author(s):  
I Wayan Sudiana ◽  
Ni Ketut Muliati ◽  
Anak Agung Ketut Agus Suardika ◽  
Ni Wayan Yuniasih
Keyword(s):  
Regression Analysis ◽  
Multiple Regression Analysis ◽  
Board Of Directors ◽  
Gender Diversity ◽  
Sampling Technique ◽  
Board Members ◽  
Company Performance ◽  
The Board Of Directors ◽  
Hindu Women ◽  
Positive Effect

Research on the influence of women on company performance has shown inconsistent results. This study wanted to determine the effect of the percentage and presence of Hindu women in the board of directors on the performance of BPRs in Bali. Gender in this study is seen from two aspects, namely the percentage and the presence of female board members. The population in this study was all rural banks in Bali. The sample was determined by using purposive sampling technique and obtained 110 companies that met the criteria. Hypothesis testing is done using multiple regression analysis. The results showed that the percentage of Hindu female board members had no effect on company performance, while the presence of Hindu female board members had a positive effect on company performance. Keywords: Gender Diversity; Hindu Women; Firm Performance.

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