scholarly journals BOARD COGNITIVE DIVERSITY AND FIRM PERFORMANCE NEXUS: EVIDENCE FROM NIGERIA

2020 ◽  
Vol 6 (2) ◽  
pp. 88-99
Author(s):  
Hope Osayantin AIFUWA ◽  
Saidu MUSA ◽  
Nusirat Ojuolape GOLD ◽  
Muhammed Kamaldeen USMAN
Keyword(s):  
Firm Performance ◽  
Financial Performance ◽  
Least Squares ◽  
Consumer Goods ◽  
Educational Level ◽  
Market Performance ◽  
Educational Background ◽  
Board Members ◽  
Research Approach ◽  
Cognitive Diversity

Purpose of the study: This study examined the influence of board cognitive diversity on firm performance in Nigeria. The researchers investigated consumer goods firms listed in the Nigeria Stock Exchange from 2013 to 2018. Methodology: This research is hinged on the positivist research philosophy; and the deductive research approach. The study adopted the multi-method quantitative research design. Data was hand-collected from the annual financial statements and firms’ websites of consumer goods firms. The researchers measured board cognitive diversity by educational level diversity, education background diversity, and professional member diversity; while performance was measured via financial performance (ROA) and market performance (Tobin's Q). Panel least squares were used to estimate the model of the study. Main Findings: Results from the panel least squares regression revealed mixed findings on the nexus between the proxies of board cognitive diversity and firm performance in Nigeria. Specifically, we found that education level diversity and professional member diversity of board members positively and significantly affects market performance. In contrast, the educational background diversity of the board negatively and significantly affects the market performance of consumer goods firms in Nigeria. Furthermore, we found no evidence on the nexus between educational level diversity; educational background diversity; professional membership diversity of board members, and financial performance of firms investigated. Implications/Applications: The researchers concluded that board cognitive diversity partially influences firm performance in Nigeria. The study recommended that firms in Nigeria, specifically consumer goods firms, should encourage more representation of board directors with a postgraduate degree. This is because they have advanced knowledge and expertise to improve the firm's performance. Novelty/Originality of this study: This is pioneer research to investigate the influence of board cognitive diversity on firm performance in Nigeria.

scholarly journals Board diversity and firm performance: The Indonesian evidence

2011 ◽  
Vol 8 (2) ◽  
pp. 450-466 ◽  
Author(s):  
Salim Darmadi
Keyword(s):  
Firm Performance ◽  
Financial Performance ◽  
Stock Exchange ◽  
Gender Diversity ◽  
Market Performance ◽  
Demographic Characteristics ◽  
Board Members ◽  
Board Diversity ◽  
Listed Firms ◽  
Nationality Diversity

This paper examines the associations between diversity of board members and financial performance of the firms listed on the Indonesia Stock Exchange (IDX). Three demographic characteristics of board members—gender, nationality, and age—are used as the proxies for diversity. Using a sample of 169 listed firms, this study finds that both accounting and market performance have significant negative associations with gender diversity. Nationality diversity is found to have no influence on firm performance. In contrast, the proportion of young members is positively related to market performance, providing evidence that young people in the boardrooms are associated with improved financial performance.

scholarly journals Can Family Ownership Strengthen the Relationship Between Intellectual Capital and Performance in ASEAN High-Tech Firms?

2021 ◽  
Vol 22 (3) ◽  
pp. 1102-1122
Author(s):  
Bima Cinintya Pratama ◽  
Maulida Nurul Innayah
Keyword(s):  
Firm Performance ◽  
Financial Performance ◽  
Intellectual Capital ◽  
Positive Relationship ◽  
Random Effect ◽  
Market Performance ◽  
High Tech ◽  
Family Ownership ◽  
Effect Regression ◽  
The Relationship

This study investigates the positive relationship between intellectual capital and firm performance. It examines whether family ownership can strengthen the relationship between intellectual capital and firm performance of firms in high-technology industries in ASEAN. The data was collected from the BvD OSIRIS database and company annual reports from 2008-2014 and conducted on five countries in ASEAN, namely Indonesia, Malaysia, Philippines, Singapore, and Thailand. The final sample used in this study consists of a total of 1,310 observations. This study uses panel data regression model analysis, i.e. fixed effect regression and random effect regression. The results showed that intellectual capital has a positive relationship with financial performance. The result proved the role of intellectual capital in increasing firm finances and its importance as one of the primary resources in competing in the AEC challenges and as the firm's primary driver for the firm's success. It is not found in the relationship between intellectual capital and market performance. In the interaction relationship, the result is contrary to the alignment effect that becomes our previous prediction. The result is consistent with the entrenchment effect and indicates that family ownership can weaken the relationship between intellectual capital and financial performance. There is no evidence about the relationship between the interaction of intellectual capital and family ownership on market performance.

Board gender diversity, board compensation and firm performance. Evidence from Jordan

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Taha Almarayeh
Keyword(s):  
Firm Performance ◽  
Financial Performance ◽  
Least Squares ◽  
Gender Diversity ◽  
Ordinary Least Squares ◽  
Content Type ◽  
Firm Financial Performance ◽  
Board Compensation ◽  
Board Gender Diversity ◽  
The Impact

Purpose This study aims to analyze the relationship between board gender diversity, board compensation and firm financial performance in the developing country, Jordan, whose cultural, economic and institutional context is very different from most previously analyzed countries’ context. Design/methodology/approach Ordinary least squares regression was used to examine the association between board gender diversity, board compensation and firm financial performance in a sample of 510 firm-year observations during the years 2009–2018. Generalized least squares estimation method was used to confirm that the results are robust. Findings The author provides new evidence that board gender diversity does not contribute to firm financial performance. The author also detects that there is a positive relationship between board compensation on firm financial performance. Originality/value This paper examines the under-researched relationship between board gender diversity, board compensation and firm financial performance. In so doing, the author tries to provide new insights into this relationship within the developing context, the case of Jordan that has a different environment from that of advanced markets. To the best of the researcher’s knowledge, this is almost certainly the first research to investigate the impact of board gender diversity and board compensation on firm financial performance in the Jordanian market. This manuscript is expected to be used as a reference by the regulators and policymakers – both in Jordan and other countries with a similar institutional, cultural setting – to provide a deep understanding of the impact of board gender diversity and board compensation on the firm performance.

scholarly journals Competitive Position of the Most Admired Companies 2018 in Consumer Goods Categor

2019 ◽  
Vol 8 (2S9) ◽  
pp. 524-534
Keyword(s):  
Financial Performance ◽  
Competitive Advantage ◽  
Consumer Goods ◽  
Quantitative Research ◽  
Secondary Data ◽  
Research Approach ◽  
Strategic Decisions ◽  
Quantitative Research Methods ◽  
Consumer Goods Industry ◽  
The Right

The Warta Economic Intelligence Unit (WEIU) conducts research in 2018.The research team uses the desk research and quantitative research methods. This research produces the names of companies with the highest awareness and the best image based on the perceptions of respondents as the desired company. Referring to (1) the opinion of David (2016:11), obtaining and maintaining competitive advantage is very important for the long-term success of the organization. (2)Solihin's opinion (2012:25) through strategic decisions made by company management, it will ensure the maintenance of the company's competitive advantage, so the researchers suspect that the success of the Consumer Goods companies in Indonesia Most Admired Companies (IMAC-2018) is due to the right strategy decisions. Regarding IMAC-2018 Consumer Goods Category, this study aims to identify and analyze competitive positions based on financial performance in the Consumer Goods industry, 2)formulate strategies that can be carried out to improve competitive positions in the Consumer Goods industry. To achieve this goal, the research approach used is a combination of qualitative and quantitative approaches with a strategic management design model. The data used in this study are secondary data, namely the financial statements of consumer goodscompany in 2016, 2017 and 2018. This research was conducted in the Top Five Indonesia Most Admired Companies 2018 in Consumer Goods Category, namely PT Garuda Food, PT GudangGaram, PT Nestlé Indonesia, PT Indofood and PT Unilever Indonesia.The results show that 1)the financial performance of PT Unilever Indonesia, shows the best position compared to the others. 2)the strategies chosen based on competitive conditions are aggressive and defensive strategies.

Diversity in boardrooms and firm performance: The role of tenure and educational level of board members

2021 ◽  
Vol 17 (3) ◽  
pp. 31-41
Author(s):  
Barbara Sveva Magnanelli ◽  
Giulia Paolucci ◽  
Luca Pirolo
Keyword(s):  
Firm Performance ◽  
Educational Level ◽  
Empirical Studies ◽  
Board Members ◽  
Corporate Boards ◽  
Listed Firms ◽  
European Area ◽  
The Impact ◽  
Positive Effect ◽  
Educational Diversity

Diversity on corporate boards has been studied from different perspectives in recent decades. The present study aims at investigating the impact on firm performance of two demographic diversity traits in boardrooms: tenure and educational diversity. The extant literature does not provide aligned findings on this topic, thus further research is still needed. The authors hypothesize that both tenure and educational diversity of board members have a positive effect on firm performance. To measure firm performance two dependent variables are used, applying two models for each hypothesis investigated Tobin’s Q and return on assets. The study is conducted using sample data of 187 listed firms within the European area, covering a 9-year period, from 2010 to 2018. Diversity dimensions are measured through indexes constructed on the basis of the mix among the directors in terms of educational level and tenure. The outcomes highlight a significant and positive relationship between tenure diversity on corporate boards and firm performance. In terms of the impact of educational diversity, no evidence indicating a positive effect on firm performance is found. The research carried out is unique because it considers two personal attributes of diversity calculating diversity indexes and measuring their impact on the firm’s performance. The econometric approach used has not been extensively applied in previous research. In fact, the majority of previous empirical studies have measured diversity through percentages or dummy variables, depending on the type of diversity aspect being analyzed, and then used it as the independent variable.

scholarly journals FINANCE BUSINESS PARTNERING AND MANUFACTURING FIRMS’ PERFORMANCE: A MEDIATING ROLE OF NON-FINANCIAL PERFORMANCE

2020 ◽  
Vol 21 (2) ◽  
pp. 473-496
Author(s):  
Yi Fei Zhang ◽  
Mohammad Namazi ◽  
Yong Qing Guo ◽  
Xuan Li
Keyword(s):  
Firm Performance ◽  
Financial Performance ◽  
Structural Equation ◽  
Market Performance ◽  
Manufacturing Firms ◽  
Mediating Effect ◽  
Financial Measures ◽  
Financial Variables ◽  
Mediating Variables ◽  
The Relationship

The effect of finance business partnering (FBP) implementation on the firm performance remains largely unexplored. The main aims of this study are to investigate whether there is a significant effect between FBP and firm performance and to identify the mediating effect of non-financial performance between FBP and firm performance. A questionnaire-based survey was conducted among 117 Chinese manufacturing firms in the year 2018, and research hypotheses were tested by partial least squares structural equation modelling (PLS-SEM). The findings showed that 1) FBP does not exert a significant and direct effect on the firms’ financial performance, 2) when non-financial measures (employees performance, internal process performance, and market performance) are used as mediating variables, the effect of all the three mediating variables on the relationship between FBP and non-financial variables are positive and significant. However, when the relationship between non-financial measures and firm’s performance is considered, the mediating effect of the non- financial variables is positive and significant only for the market performance. This study provides, for the first time, empirical evidence that non-financial performance, such as employee skills, internal processes, and market performance, can be enhanced by considering FBP. It also provides practical implications suggesting that manufacturing firms should motivate finance staff to be involved in various decision-making processes.

scholarly journals An emperical study into the informal sector: The link between entrepreneurial activity and firm performance

2021 ◽  
Vol 14 (1) ◽  
Author(s):  
Tinashe Napwanya ◽  
Willie T. Chinyamurindi
Keyword(s):  
Firm Performance ◽  
Financial Performance ◽  
Informal Sector ◽  
Emerging Market ◽  
Developmental State ◽  
Entrepreneurial Activity ◽  
Research Approach ◽  
Unique Contribution ◽  
Efficient Operation ◽  
Entrepreneurial Activities

Orientation: Within an emerging market context, the informal sector’s role was deemed critical towards achieving ideals of a developmental state. Given this perceived importance, there was a need to continually study informal sector entrepreneurial activity and its ramifications on firm performance.Research Purpose: This study aimed to understand the link between informal sector entrepreneurial activities and firm performance using a sample of firms operating in Durban, South Africa.Motivation of the study: Exploring those entrepreneurial activities that either enhanced or impeded the informal sector was deemed critical in the effectual and efficient operation of the sector. In driving the firm performance agenda ascertaining the role of factors such as (1) entrepreneurial culture, (2) entrepreneurial education and skills, (3) government and incubation support and finally, (4) access to finance can enhance the informal sector through the provision of evidence-based interventions.Research approach/design/method: A quantitative survey research approach was used to collect data from 152 informal sector businesses operating in the city of Durban in South Africa. A convenience sampling technique was used to access the respondents. Data were analysed using the Statistical Package for Social Sciences (SPSS) programme version 23 using correlation and regression tests.Main findings: The findings revealed the adoption of an entrepreneurship culture, including access to entrepreneurship education and skills to predict a firm’s financial and non-financial performance significantly. Furthermore, it was found that government and incubation support predicted a firm’s financial performance. However, it was also established that government and incubation support had no unique contribution to non-financial performance.Practical/managerial implications: Suggestions were made based on the findings that entrepreneurial activities have a bearing on informal sector business performance. These findings became a helpful intervention towards enhancing the performance of informal businesses.Contribution/value-add: This study contributed to understanding entrepreneurial activities that either enhanced or impeded informal businesses’ performance.

scholarly journals Does Gender Diversity on Corporate Boards Affect Firm Performance?

Spectrum ◽  
2018 ◽  
Author(s):  
Dylan Aaron Kaseram
Keyword(s):  
Firm Performance ◽  
Financial Performance ◽  
Good Governance ◽  
Gender Diversity ◽  
Board Members ◽  
Corporate Boards ◽  
Firm Financial Performance ◽  
The Board Of Directors ◽  
Promote Gender Equality ◽  
Gender Quota

This current literature review focuses on the diversity of members on the board of directors in corporations. By exploring contemporary literature in finance, this article seeks to understand the effects of board member gender diversity on firm financial performance. Firstly, diversity in board members is shown to have mixed results on firm performance. Secondly, heterogeneous board members’ different life experiences and demographic characteristics lead them to solve problems and make decisions in various ways which could ultimately impact the financial performance of the firms they serve. Thirdly, gender diversity is a topic that has gained much attention on modern corporate boards. Appointing women to executive boards has proven to have effects on firm performance. In addition, governments around the world have taken action to promote gender equality by enacting gender quota legislation or by implementing codes of good governance. Furthermore, when appointed to the executive board, women face additional difficulties once in the boardroom. Lastly, the effects of gender diversity on firm performance are found to be mixed and varied.

The effect of the board of directors on the performance: Case of Tunisian banks

2020 ◽  
Vol 2 (2) ◽  
pp. 8-17
Author(s):  
Abdelkader Derbali ◽  
Lamia Jamel ◽  
Ali Lamouchi ◽  
Ahmed K Elnagar ◽  
Monia Ben Ltaifa
Keyword(s):  
Financial Performance ◽  
Board Of Directors ◽  
Stock Exchange ◽  
Market Performance ◽  
Outside Directors ◽  
Return On Equity ◽  
Satisfactory Outcome ◽  
Stock Market Performance ◽  
The Board Of Directors ◽  
Negative Effect

The board of directors plays a crucial role as an internal structure of corporate governance. Certainly, its efficiency is needy on the existence of numerous issues; the greatest significance is correlated to its characteristics that relay principally to the individuality of its memberships, board dimension, combining the purposes of pronouncement and regulator as well the grade of the individuality of the audit board and the diverse gender of the committee. To assess the authenticity of our assumptions, which stipulate the presence of deterministic characteristics of the committee on the profitability of Tunisian banks, we evaluated by three different ratios i.e., ROA (return on asset), ROE (return on equity), and MP (market performance); and we estimate three models with linear regressions. The empirical findings were performed on a data sample composed of 11 Tunisian banks listed on the Stock Exchange of Tunisia (SET) during the period from 1999 to 2018. From the estimated regressions, we find a satisfactory outcome indicating the significance of the influence of the characteristics of the committee on the banking performance in Tunisia. Then, the percentage of outside directors negatively affects the level of the financial performance of banks. The number of institutional administrators performs an essential role in improving financial performance. Finally, the duality of the Presidency of the Council General-Directorate has a negative effect on the level of stock market performance of Tunisian banks.

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