scholarly journals Gender diversity and financial performance of the stock exchange listed companies

2020 ◽  
Vol 17 (4, Special Issue) ◽  
pp. 257-267
Author(s):  
Yasmina Jaber
Keyword(s):  
Stock Exchange ◽  
Critical Mass ◽  
Gender Diversity ◽  
Listed Companies ◽  
Least Square ◽  
Bivariate Analysis ◽  
Explanatory Variables ◽  
Muslim Countries ◽  
The Board Of Directors ◽  
The Impact

Tunisia is considered one of the first Arab Muslim countries to have the freedom of women and their participation in the economic sphere. Despite these advancements in women’s freedom, Tunisia still has a few women in positions of responsibility in the business. Our reflection on gender diversity will, therefore, be studied from the angle of the contribution of women to the performance of the company. Our research uses different gender diversity proxies such as the percentage of women on the board, a binary variable, and two additional indices of the diversity the Blau and Shannon indices. In order to properly study this impact, we have mainly used bivariate analysis by studying the association between endogenous and explanatory variables and multivariate analysis by applying double least square regression (2SLS). Using the panel data methodology and controlling for endogeneity, the results show that gender diversity on the board of directors does not have an impact on the performance of listed companies measured by Tobin’s Q. However, if critical mass is reached, the impact on gender diversity becomes positive and significant.

scholarly journals The impact of the board of directors on the financial performance of Tunisian companies

2012 ◽  
Vol 8 (3) ◽  
pp. 6-21
Author(s):  
Zied Bouaziz ◽  
Mohamed Wajdi Triki
Keyword(s):  
Financial Performance ◽  
Board Of Directors ◽  
Audit Committee ◽  
Stock Exchange ◽  
Gender Diversity ◽  
Linear Regression Models ◽  
The Board Of Directors ◽  
Internal Mechanism ◽  
And Control ◽  
The Impact

The Board of Directors plays a key role as a internal mechanism of corporate governance. Indeed, its effectiveness is dependent on the presence of several factors, the most important are related to characteristics that relate primarily to the independence of its members, board size, the cumulative functions of decision and control, the degree of independence of the audit committee and the gender diversity of the board. To test the validity of our hypothesis, which states the existence of a certain deterministic between the board’s characteristics and financial performance measured by three different ratios, namely ROA, ROE and Tobin’s Q, we have developed three linear regression models. Our empirical validation was conducted on a sample of 26 companies listed on the Tunisian stock exchange Tunis (Tunis Stock Exchange) over a period that spans four years (2007-2010). The estimated models show satisfactory results showing the importance of the impact of board characteristics on financial performance of Tunisian companies.

scholarly journals Does the structure of the board of directors improve M&A performance?

2019 ◽  
Vol 7 ◽  
pp. 15
Author(s):  
Aleksandra Anna Chadam
Keyword(s):  
Selection Process ◽  
Sample Selection ◽  
Gender Diversity ◽  
Least Square ◽  
Board Independence ◽  
Board Structure ◽  
Board Effectiveness ◽  
The Board Of Directors ◽  
The Impact ◽  
A Performance

<p><strong>Purpose</strong> – The research focuses on examining which characteristics can raise or diminish board effectiveness in the context of M&amp;A activities of companies.</p><p><strong>Design/methodology/approach</strong> – The nature of the research was quantitative, and the sample was selected purposefully. The data was retrieved from four databases: ThomsonOne, Eventus, Institutional Shareholder Platform (ISS) and Compustat. The final sample consisted of 2613 mergers and acquisitions and was selected by applying the following criteria: both the bidder and the target were US-based companies, the acquirer was a listed company, the acquisition announcement took place over the period 2008 – 2017, the deal value exceeded USD 1 million, the transaction resulted in a control gain over the target company. M&amp;A performance was assessed using cumulative abnormal return (CAR) method, while the board influence was examined using ordinary least square (OLS) regression. Five hypotheses regarding the influence of board independence, gender diversity, board size, CEO duality and type of elections were tested in the research.</p><p><strong>Findings</strong> – Two out of five hypotheses were confirmed in the study. Board independence and board classification increase bidders’ CARs over the deal announcement period.</p><p><strong>Research limitations/implications: </strong>The main limitation is related to the measurement of M&amp;A performance, which is relatively difficult to quantify. Moreover, the method of selection of the sample, especially a higher proportion of companies from certain industries could affect the outcomes and underestimate the impact of gender diversity. Further research could investigate the deals in the long-term perspective and apply different criteria in the sample selection process.</p><p><strong>Practical implications:</strong> The outcome of this study is of importance to acquisitive and non-acquisitive companies by aiding them in finding an optimal board structure, which can effectively monitor and motivate the CEO, leading to profitable decisions concerning not only M&amp;A but all major investments.</p><p><strong>Originality/value:</strong> The study investigates the topic of board effectiveness in the M&amp;A context, which the research coverage is still very limited. The study covers five board characteristics and several control variables to increase the robustness of the results and ensure their correct interpretation. Finally, the sample consists of the most recent data, which enables to draw up-to-date conclusions that consider constantly developing corporate governance law and trends regarding the board structure and composition.</p>

scholarly journals The Impact of Corporate Governance on Earnings Management: The Case Of Pakistan Textile Industry

2021 ◽  
Vol 6 (1) ◽  
pp. 71-87
Author(s):  
Shahzad Ahmad ◽  
Asad Sarfaraz Khan ◽  
Dr. Muhammad Zahid
Keyword(s):  
Corporate Governance ◽  
Earnings Management ◽  
Stock Prices ◽  
Textile Industry ◽  
Stock Exchange ◽  
Gender Diversity ◽  
Least Square ◽  
Governance Mechanism ◽  
Board Size ◽  
The Impact

Due to globalization and expansion in the world markets, the sensitivity of investor’s confidence has become a challenge especially in the wake of issues related to stock prices, earnings management (EM), the stability of income levels and corporate governance (CG) application. This study aims to explore the usefulness of four traits of corporate governance mechanism in constraining earnings management activities. By using five years’ observations of 109 textile companies listed on Pakistan Stock Exchange (PSX) for the period 2013-2017. Traits comprising of board size, gender diversity, board experience and qualification of board member are analyzed using Ordinary Least Square (OLS). Results of the study submit that board experience; finance qualification and business qualification have a negative significant impact on EM thus contends that experienced board members having business and finance qualification discourage earnings manipulation. While, positive and significant impact of board size on earnings management is an indication of loss of control due to its large size. Moreover, gender diversity and chartered accountancy are found irrelevant to EM in our case.

scholarly journals Effect of Ownership Structure on Company Performance: Evidence from Emerging Market

2020 ◽  
Vol 1 (1) ◽  
pp. 27-36
Author(s):  
Waleed Alahdal ◽  
Mohammed H. Alsamhi ◽  
Mohammed S. Barakat
Keyword(s):  
Ownership Structure ◽  
Stock Exchange ◽  
Emerging Market ◽  
Empirical Studies ◽  
Listed Companies ◽  
Research Area ◽  
Company Performance ◽  
The Board Of Directors ◽  
Structure Index ◽  
The Impact

This paper uses panel data to examine the impact of ownership structure index on the financial performance of 73 listed companies of the Indian national stock exchange from 2009 to 2016. To measure the Panel Regression in this study, the FEM model was used. The different dimensions of the ownership structure index involve ten items used as the Independent variable of this study. Two measures have been adopted to estimate the firm performance that is; ROA and ROE. In contrast, the control variables are firm size and leverage. This study's empirical evidence shows that the ownership structure index has significant impact on a firm's performance measured by ROA and ROE of Indian Nifty 100 listed companies. Findings of this study support previous empirical studies performed and add some value in the research area of finance that explores different aspects of the board of directors' index and ownership structure index in Indian market by using Nifty 100 as an example.

scholarly journals The Impact of Corporate Governance on the Financial Distress: Evidence from Pakistani Listed Companies

2017 ◽  
Vol 5 (2) ◽  
pp. 49-53
Author(s):  
Ahmed Hassan Jamal ◽  
◽  
Syed Zulfiqar Ali Shah ◽  
Keyword(s):  
Corporate Governance ◽  
Financial Distress ◽  
Audit Committee ◽  
Positive Impact ◽  
Stock Exchange ◽  
Listed Companies ◽  
Board Composition ◽  
Explanatory Variables ◽  
Governance Practices ◽  
The Impact

This study intends to assess how corporate governance affects the financial distress in non-financial listed companies in Pakistan. Sample of 53 companies was obtained from non-financial institutes listed in Pakistani stock exchange. Regression analysis is used to estimate the impact of explanatory variables including size of board, composition of board, audit committee independence and duality of CEO on the financial distress. The findings show that size of board, composition of board and CEO duality has a positive impact on Z-score of Pakistani listed firms. This implies that better the corporate governance practices in companies, lower will be the financial distress and vice versa.

scholarly journals Board Gender Diversity and Cash Holdings: Empirical Evidence from the European Sport and Leisure Sector

2021 ◽  
Vol 9 (4) ◽  
pp. 64
Author(s):  
Panagiotis E. Dimitropoulos ◽  
Konstantinos Koronios
Keyword(s):  
Empirical Evidence ◽  
Fixed Effects ◽  
Critical Mass ◽  
Gender Diversity ◽  
Cash Holdings ◽  
Women Directors ◽  
The Board Of Directors ◽  
Panel Fixed Effects ◽  
Board Gender Diversity ◽  
The Impact

The scope of this study is to examine the impact of board gender diversity on corporate cash-holding decisions within the European sport and leisure sector. A sample of 125 unique firms was selected for the period from 2008 to 2019, and analysis was performed using panel fixed-effects regressions. Empirical evidence documented that the higher the number of women serving on the board of directors, the higher the level of cash the firm holds. This result is attributed to the critical mass theory of governance, suggesting that boards having at least two women directors are associated with higher cash holdings compared to firms with one or no women directors. Additionally, gender diversity leads to increased cash holdings for firms with lower governance quality, suggesting that women on boards perform a monitoring role within those firms with the most severe agency problems. The results remain robust after several sensitivity tests controlling for potential endogeneity among the variables and the model’s functional form.

scholarly journals Audit committee effectiveness and company performance: Evidence from Egypt

2021 ◽  
Vol 10 (2) ◽  
pp. 134-156
Author(s):  
Engy ElHawary
Keyword(s):  
Financial Performance ◽  
Audit Committee ◽  
Stock Exchange ◽  
Gender Diversity ◽  
Annual Reports ◽  
Company Performance ◽  
Section Data ◽  
The Board Of Directors ◽  
And Gender ◽  
The Impact

The purpose of this paper is to investigate the impact of audit committee characteristics (size, independence, experience, gender diversity, and frequency of meetings) on the company’s financial performance (ROA and ROE) in Egypt. In 2016, the Egyptian Stock Exchange announced a new listing requirement for the audit committee members’ characteristics to enhance its effectiveness. Data are gathered from the board of directors (BOD) and annual reports of the EGX 30 index non-financial listed companies in Egypt for the period of 2016–2018. Data is analyzed by using panel data cross-section data analysis and correlation analysis. The findings reveal that the audit committee size has a significant relationship with ROA only and committee members’ experience is significantly related with ROE only. The other characteristics (independence, meetings, and gender diversity) have no impact on ROA and ROE. Such findings contribute to the literature by providing new understandings regarding the audit committee as a key component of corporate governance and its impact on financial performance. It could also guide and improve the boards’ selection of the audit committee members and gives Egyptian regulators a better understanding of the impact of their latest listing requirements on protecting the shareholders’ interests and increasing their confidence through having transparent financial statements.

scholarly journals The Impact of Board Gender Diversity and Foreign Institutional Investors on the Corporate Social Responsibility (CSR) Engagement of Chinese Listed Companies

2019 ◽  
Vol 11 (2) ◽  
pp. 307 ◽  
Author(s):  
M. A. Gulzar ◽  
Jacob Cherian ◽  
Jinsoo Hwang ◽  
Yushi Jiang ◽  
Muhammad Safdar Sial
Keyword(s):  
Institutional Investors ◽  
Stock Exchange ◽  
Gender Diversity ◽  
Listed Companies ◽  
Chinese Listed Companies ◽  
Foreign Institutional Investors ◽  
Board Gender Diversity ◽  
Corporate Social ◽  
The Impact ◽  
Csr Engagement

The main purpose of this research is to examine the impact of board gender diversity and foreign institutional investors on the corporate social responsibility engagement of Chinese listed companies by considering a sample from the China Stock Market and Accounting Research (CSMAR) database of all non-financial firms listed on the Shanghai stock exchange and the Shenzhen stock exchange during the period from 2008–2015. The CSR is engaged by using the data from the CSMAR database at the firm level, and ranks the CSR disclosures of Chinese companies separately. The recent CSR promotion in China produced a visible increase in attracting female members on the board and members as foreign institutional investors by Chinese listed companies. The findings also showed that the greater the presence of female directors on the board, the stronger the CSR engagement would be. According to critical mass theory and team dynamics, these findings further broaden the accounts that emphasize social networks based on gender. Hence, female members on the board of directors emerged to be significant as a gender mix with extending CSR change. Therefore, our results added a new aspect to the emerging literature on CSR-engagement and gender especially in China. Due to intense political forces and networks in the Chinese listed entities, foreign institutional investors (FIIS) have less incentive to enhance CSR engagement further. Thus, the impact of foreign institutional investors on CSR engagement is as yet unknown, but we improved our knowledge about how the international aspects affect CSR in China. Furthermore, our results are robust, which concern control variables under consideration.

scholarly journals The Impact of Board Independence, Gender Diversity and Nationality Diversity on Firm Performance

2021 ◽  
Vol 16 (1) ◽  
pp. 323-346
Author(s):  
Aftab Mohd Idris ◽  
◽  
Ousama A. A. ◽  
Keyword(s):  
Corporate Governance ◽  
Firm Performance ◽  
Financial Market ◽  
Stock Exchange ◽  
Gender Diversity ◽  
Listed Companies ◽  
Board Independence ◽  
Board Structure ◽  
The Impact ◽  
Nationality Diversity

This study aimed to examine the relationship between board structure and firm performance measured by return on equity (ROE) and return on asset (ROA). 42 firms listed on the Qatar Stock Exchange (QSE) in 2018 were examined, using regression analysis. The study found that gender diversity (i.e., female directors on the board) had a positive significant relationship with firm performance in both measures, i.e., ROE and ROA. In addition, only board meeting and non-executive directors had significant relationships with firm performance measured by ROA. The findings of the study have some practical implications for some stakeholders, such as listed companies in Qatar and the Qatar Financial Market Authority. The Qatari listed companies will be able to understand the impact of board structure and the complementary benefits that may affect firm performance and thus strengthen the function of their boards. The Qatar Financial Market Authority will be able to understand the current practices of the corporate governance (CG) code; its strengths and weakness. Hence, it will be able to improve the code in order to overcome the weaknesses and strengthen good practices. Keywords: corporate governance, board independence, gender diversity, nationality diversity, firm performance

scholarly journals Gender-Diversity, Financial Performance and Cash Holding in Family Firms

2018 ◽  
Vol 3 (4) ◽  
pp. 124-130
Author(s):  
Salehudin Eka Saputra Alrasidi, ST ◽  
Farida Titik Kristanti, S. E. M. Si
Keyword(s):  
Financial Performance ◽  
Family Firms ◽  
Stock Exchange ◽  
Gender Diversity ◽  
Least Square ◽  
Cash Holding ◽  
Return On Assets ◽  
Independent Variables ◽  
Growth Opportunity ◽  
The Impact

Objective - This research aims to determine the presence of partial effects on gender-diversity and financial performance variables on the cash holding of family firms on the Indonesian Stock Exchange included in the Kompas100 index. Methodology/Technique - The approach used in this research was causal associative testing using a panel data regression with a General Least Square (GLS) method using six independent variables: size, growth opportunity, dividend, return on assets, leverage, and gender diversity. Meanwhile, cash holding acts as a dependent variable. Findings - The results of the research show that the independent variables of leverage have significantly negative relationships on cash holding on the Kompas100 index of Indonesia in the period of 2013-2016. Contrary to this, return on asset has a significantly positive relationship with cash holding. Novelty - Gender diversity is an important variable of boardroom; this paper reveals the impact of gender diversity and performance on family holding firms. These results can be used to assess the performance and fundamentals of a firm. Type of Paper Empirical Keywords: Cash Holding; Dividend; Gender Diversity; Growth Opportunity; Leverage; Return on Assets; Size. JEL Classification: M40, M41, M49.

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