scholarly journals Women on bank boards and risk-taking: A cross-countries analysis on the moderating role of masculinity

2020 ◽  
Vol 17 (3) ◽  
pp. 71-83 ◽  
Author(s):  
Carmen Gallucci ◽  
Rosalia Santulli ◽  
Riccardo Tipaldi
Keyword(s):  
Gender Diversity ◽  
Cultural Dimension ◽  
Women Directors ◽  
Negative Effects ◽  
Country Level ◽  
Board Gender Diversity ◽  
Ideal Worker ◽  
Moderating Role ◽  
The Ideal

This study examines the effects of board gender diversity on a bank’s risk by applying a moderate multiple regression analysis on a dataset covering the years 2008-2017 and comprising 110 banks from Germany, Italy, Spain, and Switzerland. Masculinity, a country-level cultural dimension incorporating the behavioural expectations surrounding men and women in a society, is used as a moderator. Results suggest that high country-level masculinity stresses the risk-aversion of a bank’s women directors, therefore compromising financial performance. To mitigate the negative effects of high country-level masculinity, this paper provides several suggestions. First, banks should change their stereotypical depiction of the “ideal worker”. Second, banks should question the cultural motives underpinning the entrance of women directors in the “boy’s club”. Last, banks should create a more egalitarian workplace where the distribution of rewards does not strengthen the privileges of the established elites.

scholarly journals The moderating role of board gender diversity between power-based corporate governance and tax aggressiveness

2021 ◽  
Vol 10 (2) ◽  
pp. 104-147
Author(s):  
Farzan Yahya ◽  
Abdul Manan ◽  
Muhammad Wasim Jan Khan ◽  
Muhammad Sadiq Hashmi
Keyword(s):  
Corporate Governance ◽  
Gender Diversity ◽  
Tax Avoidance ◽  
Ceo Power ◽  
Tax Aggressiveness ◽  
Concentrated Ownership ◽  
Board Gender Diversity ◽  
The Relationship ◽  
Moderating Role

The purpose of this study is to explore the moderating effect of board gender diversity on the relationship between power-based corporate governance (CEO power and concentrated ownership) and tax aggressiveness. The sample of this study is based on 2,071 firm-year observations over the period 2010 to 2018. We employed two-step GMM estimations to account for endogeneity and other statistical biases. The results show that CEO power increases the likelihood of tax aggressiveness while the link between the large controlling shareholders and tax-avoidance activities is not statistically significant. Lastly, the findings suggest that powerful CEOs manipulate female directors to promote tax aggressiveness behavior. 

scholarly journals Gender Diversity as the Antidote to ‘Groupthink’ on Corporate Boards

2018 ◽  
Vol 22 (1) ◽  
pp. 85
Author(s):  
Akshaya Kamalnath
Keyword(s):  
Gender Diversity ◽  
Board Members ◽  
Corporate Boards ◽  
Women Directors ◽  
Professional Background ◽  
Decision Making Processes ◽  
Board Gender Diversity ◽  
Board Decision Making ◽  
Significant Question

Gender diversity on corporate boards has become a point of emphasis, to the exclusion of all other forms of diversity. This paper analyses whether board gender diversity might help boards overcome groupthink (i.e. the failure of board members to consider alternatives to the dominant view when making decisions). This is a significant question because the board is reponsible for governance of the company and groupthink is often cited as a hurdle to effectively performing this role. Thus, the paper first examines the role of the board, board decision-making processes and the problem of groupthink, and subsequently, the potential of gender diversity to overcome groupthink. It concludes that gender diversity on corporate boards might help overcome groupthink so long as the women directors are also independent and bear ‘outsider’ status. However, other forms of diversity like race, education, tenure, professional background etcetera might offer the same benefits and thus should not be overlooked.

scholarly journals Political connections and banking performance: the moderating effect of gender diversity

2020 ◽  
Vol 20 (6) ◽  
pp. 1001-1028 ◽  
Author(s):  
Catarina Proença ◽  
Mário Augusto ◽  
José Murteira
Keyword(s):  
Gender Diversity ◽  
Political Connections ◽  
Board Members ◽  
Negative Effects ◽  
Content Type ◽  
And Gender ◽  
Board Gender Diversity ◽  
The Impact ◽  
Insight Into

Purpose This study aims to investigate the role of board gender diversity in explaining the effects of board members’ political connections on banking performance in the Eurozone. Design/methodology/approach This paper analyses panel data on 83 banks supervised by the European Central Bank (ECB) for the period 2013–2017, using a generalized moment method-type estimation methodology. Findings Results suggest that when gender diversity is high, there is a U-shaped nonlinear relationship between political connections and banking performance. Empirical evidence also indicates that differentiating characteristics of women, such as greater ethical concern and risk aversion, help mitigate the negative effects of political connections on banking performance, safeguarding the institutions’ interests from the adverse effects of personal agendas. In addition, these results also suggest that a minimum of 14% of gender diversity can contribute to greater social justice and beneficial structural change. Research limitations/implications The period studied may not yet fully reflect the impact of the assessment of the board members’ suitability. Practical implications The paper contributes to the growing literature on political connections and gender diversity, providing greater insight into their role as determinants of banking performance. The study also suggests the benefits and possible limitations of the regulator’s two impositions – gender diversity quotas and members’ repute (members’ political connections). Originality/value The effect of gender diversity on the impact of board members’ political connections on banking performance has not been studied, as these relationships have not been analysed separately for banks directly supervised by the ECB.

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