Impact of Board Gender Diversity on Firm Value: International Evidence

2017 ◽  
pp. 65-76 ◽  
Author(s):  
Anh Vo Thi Thuy ◽  
Khanh Bui Phan Nha
Keyword(s):  
Firm Value ◽  
Gender Diversity ◽  
Developed Countries ◽  
Listed Firms ◽  
International Evidence ◽  
Women On Boards ◽  
Negative Effect ◽  
Board Gender Diversity ◽  
The Impact ◽  
Firm Market Performance

This paper focuses on the impact of board gender diversity on firm performance. Using a sample of 880 listed firms in 10 developed countries covering a nine year period, we find that gender diversity has a negative effect on firm market performance. The result is consistent when different robustness checks are employed. A negative correlation can be explained by the fact that the presence of women on boards increases monitoring function. When the investors’ rights are well protected by the legal system, this extra monitoring may be costly for firms. This finding suggests that a quota for the exact anticipation of female directors on boards should be carefully considered.

scholarly journals BOARD GENDER DIVERSITY AND ITS IMPACT ON FIRM VALUE AND FINANCIAL RISK

2019 ◽  
Vol 9 (3) ◽  
pp. 407
Author(s):  
Yunia Panjaitan
Keyword(s):  
Board Of Directors ◽  
Firm Value ◽  
Financial Risk ◽  
Positive Impact ◽  
Stock Exchange ◽  
Gender Diversity ◽  
Multiple Linear Regression Model ◽  
Manufacturing Companies ◽  
Board Gender Diversity ◽  
The Impact

One of the things that can be done to maximize firm value is by having a board of directors with diverse characteristics. Gender diversity in the firm’s board of directors can bring a positive impact to the firm. Females are generally more risk-averse than males, and this could lead to a lower risk that must be borne by the firm. This study is conducted to investigate the impact of Board Gender Diversity to firm’s value and financial risk. Using 51 manufacturing companies listed in the Indonesia Stock Exchange from year 2016 to 2017, data was analyzed with the multiple linear regression model for panel data. The findings suggest that the presence of female directors has a positive and significant effect to firm’s value, and a negative but not significant effect to firm’s financial risk

scholarly journals Does gender diversity on the board reduce agency cost? Evidence from Pakistan

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ali Amin ◽  
Ramiz Ur Rehman ◽  
Rizwan Ali ◽  
Collins G. Ntim
Keyword(s):  
Gender Diversity ◽  
Business Environment ◽  
Agency Cost ◽  
Agency Conflicts ◽  
Content Type ◽  
Listed Firms ◽  
Financial Firms ◽  
Female Directors ◽  
Board Gender Diversity ◽  
The Impact

Purpose This study aims to examine the effects of board gender diversity on agency costs in non-financial firms listed on the Pakistan Stock Exchange (PSX). Design/methodology/approach Multiple regression analysis is used to determine the impact of board gender diversity on agency cost. The research used panel data consisting of 2,062 firm-year observations of 226 non-financial firms listed on the PSX from 2008 to 2019 to test the proposed hypothesis. In addition, the Blau and the Shannon indices were used to checking for robustness. Findings The results indicate that female presence on the board significantly reduces the agency cost and, hence, mitigates the principal-agent conflict. Moreover, consistent with the critical mass theory, it was found that boards with three or more female directors have a stronger impact on reducing the agency cost, as compared to two or fewer female directors on the board. Research limitations/implications The sample was restricted to non-financial firms listed on the PSX only; therefore, the results reflect the attributes of Pakistan’s business environment. A similar analysis in the context of other countries may generate different results. Practical implications The findings imply that female directors play an important role in reducing agency conflicts between shareholders and managers by enhancing monitoring through effective governance mechanisms. The policymakers, therefore, should focus on female career development and encourage professional training programmes to generate a fair, competitive environment for senior female management. Originality/value This study attempts to fill the literature gap in that no similar study covers the non-financial firms’ listed firms in Pakistan. The paper supports the reforms made by the code of corporate governance by making the placement of female directors mandatory on Pakistani corporate boards. Overall, support is provided for the view that regulators should favour gender quotas regarding the composition of the board management team of listed firms to reduce agency conflicts and gain shareholder confidence.

The Impact of Board Gender Diversity Policy on Women on Boards: An Institution-based View

2018 ◽  
Vol 2018 (1) ◽  
pp. 13303 ◽  
Author(s):  
Shili Chen ◽  
Shibashish Mukherjee ◽  
Niels Hermes ◽  
Reginald Hooghiemstra
Keyword(s):  
Gender Diversity ◽  
Diversity Policy ◽  
Women On Boards ◽  
Board Gender Diversity ◽  
The Impact

scholarly journals Boards’ Gender Diversity and Firms’ Financial and Ethical Performance in Pakistan: A Comparative Analysis

2020 ◽  
Vol 10 (3) ◽  
pp. 255
Author(s):  
Hafiz Muhammad Awais ◽  
Dr. Danish Ahmed Siddiqui
Keyword(s):  
Comparative Analysis ◽  
Performance Measures ◽  
Firm Value ◽  
Financial Risk ◽  
Gender Diversity ◽  
Corporate Boards ◽  
Female Representation ◽  
Board Diversity ◽  
Negative Effect ◽  
Board Gender Diversity

Board diversity has lately being a heavily contested topic of research. Women, having a unique pool of resources and human capital, bring unique and diverse skills to the board that could improve board performance which positively impacts firm value. This study aims to investigate board gender diversity and its impact on firms’ performance in Pakistan. More specifically, this study compares different performance characteristic of firms with and without gender diversity in boards. We also analyzed the effect of women on board (WOB) on different performance measures in the presence of control variables. These measures included Return to assets, equity and sales, TOBIN Q, and Ethical and Social Compliance (ESCC). For this, panel data of 4 years from 2015 to 2018 were collected from 100 companies, and ANOVA and regression analysis were performed. The comparative analysis showed that non-women component has a significantly higher ROA than women, whereas ROE is higher for women. Moreover, non-women board companies seem to take a higher financial risk by taking more leverage. Surprisingly, the ESCC factor seems to be significantly higher for non-women board companies showing better social compliance. Evidence from regression found remains inconclusive. In fact, the performance measures like Tobin Q, and ROA seems to be negatively affected by WOB, whereas ROE was positively and significantly affected. ESCC seems to have a strong and positive effect on Tobin Q in companies with WOB, as well as ROA in overall companies. Evidence also suggested that WOB also seems to have a negative effect on ESCC. Hence, in the case of Pakistan, the findings remained inconclusive because women representation on board is not enough to have an influencing role in the board. The size of the female representation on the board needs to be sufficiently large to have an influencing role on corporate boards.

scholarly journals The impact of gender diversity in the boardroom on firm performance: A South African perspective

2016 ◽  
Vol 11 (1) ◽  
pp. 71-79 ◽  
Author(s):  
Tshipa Jonty ◽  
Thabang Mokoaleli Mokoteli
Keyword(s):  
Firm Performance ◽  
South African ◽  
Firm Value ◽  
Small Firms ◽  
Resource Dependence ◽  
Gender Diversity ◽  
Business Case ◽  
Ordinary Least Squares ◽  
Board Gender Diversity ◽  
The Impact

The study employs panel methodology and Ordinary Least Squares (OLS) multiple regression to examine the impact of board gender diversity on firm performance for a sample of 137 Johannesburg Stock Exchange (JSE) listed firms during the period 2002 and 2011. The results show that board gender diversity among South African firms have been improving substantially since 2002 when King II came into force. In 2002, the average South African board had only 4 per cent of women and by 2011, this had increased to 13 per cent. Notably, the findings also show that large South African firms have a greater representivity of women on their boards than small firms. By inference this could mean that gender diversity has a positive influence on firm value as findings further show that firm value in large firms is higher than that in small firms. This study contribute to the debate of whether board gender diversity influences firm value and whether the South African government should consider adopting quota legislation such as in Spain, Norway, The Netherlands and France. The findings suggest that there is evidence of a business case to advocate the implementation of quota legislation in South Africa. Empirical findings proceed to confirm that theories of corporate governance such as agency, resource-dependence, signalling and stakeholding surely provide some support to understanding the relationship between board gender diversity and firm performance.

scholarly journals Banking disclosure and banking crises in Africa: does board gender diversity play a role?

2022 ◽  
Vol 9 (1) ◽  
Author(s):  
Daniel Ofori-Sasu ◽  
Maame Ofewah Sarpong ◽  
Vivian Tetteh ◽  
Baah Aye Kusi
Keyword(s):  
Information Disclosure ◽  
Positive Impact ◽  
Gender Diversity ◽  
Banking Crisis ◽  
Banking Crises ◽  
Predicted Probability ◽  
Women On Boards ◽  
Bank Disclosure ◽  
Board Gender Diversity ◽  
The Impact

AbstractThe paper aims to investigate the impact of board gender diversity in explaining the relationship between bank disclosure and the predicted probability of banking crises in Africa. The study employs robust panel estimates based on an aggregate dataset of banks in 42 African countries over the 2006–2018 periods. From the study, board gender diversity (more women on boards and the presence of women on boards) has a positive impact on information disclosure of banks. We find that board gender diversity and bank disclosure have the possibility of reducing a banking crisis. We observe that board gender diversity enhances the reductive effect of bank disclosure on a predicted probability of a banking crisis. The implication is that women on boards provide prudent decisions on financial information disclosure that significantly reduce the possibility of a banking crises in order to ensure stable banking systems.

Sign in / Sign up

Export Citation Format

Share Document