scholarly journals Board/Executive Gender Diversity and Firm Financial Performance in Canada: The Mediating Role of Environmental, Social, and Governance (ESG) Orientation

2020 ◽  
Vol 12 (20) ◽  
pp. 8386
Author(s):  
Zeineb Ouni ◽  
Jamal Ben Mansour ◽  
Sana Arfaoui
Keyword(s):  
Financial Performance ◽  
Gender Diversity ◽  
Empirical Support ◽  
Mediating Role ◽  
Firm Financial Performance ◽  
The Board Of Directors ◽  
The Subject ◽  
Executive Gender ◽  
Empirical Implications

The objective of this study is to verify the effect of gender diversity on the board of directors (BD) and the executive committee (EC) of participating Canadian firms with regard to the financial performance and the mediating role of environmental, social, and governance (ESG) orientation in this relationship. The study sample was composed of 133 Canadian firms, and the data cover an 18 year timeline (2002–2019), with 925 observations. This paper provides empirical support for the effect that gender diversity in turnover has on the financial performance of firms and explains 53% of its variance. In addition to supporting the beneficial effect of gender diversity on performance, the study reveals the mediating mechanism through the ESG orientation of companies explaining almost 4% of the total effect of gender diversity on performance. By analyzing two levels of diversity, the study revealed the superiority of the effect of gender diversity in BDs as compared to ECs. We discuss the theoretical and empirical implications of the results found, as well as the limitations and future prospects of research on the subject.

ESG and corporate financial performance: the mediating role of green innovation: UK common law versus Germany civil law

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Salim Chouaibi ◽  
Jamel Chouaibi ◽  
Matteo Rossi
Keyword(s):  
Financial Performance ◽  
Firm Value ◽  
Mediation Effect ◽  
Green Innovation ◽  
Content Type ◽  
Mediating Role ◽  
Thomson Reuters ◽  
The Board Of Directors ◽  
The Relationship

PurposeThe purpose of this paper is to investigate the direct and indirect links between environmental, social and governance (ESG) practices and financial performance using the mediate role of green innovation.Design/methodology/approachTo test the current study hypotheses, the authors applied linear regressions with a panel data using the Thomson Reuters ASSET4 and Bloomberg database from a sample of 115 UK and 90 Germany companies selected from the ESG index over the period 2005–2019.FindingsThe results show that the strengths ESG increase the firm value and the weaknesses decrease it. In addition, the authors find that green innovation fully mediates the relationship between ESG practices and financial performance in UK and Germany.Practical implicationsThe findings provide interesting implications to academics practitioners and regulators who are interested in discovering ESG score, financial performance and green innovation. The results also provide insights to regulators and the board of directors on future growth opportunities for the company and the country.Originality/valueThis study is unique in examining the mediation effect of green innovation on the relationship between ESG practices and financial performance.

scholarly journals National culture and firm financial performance: A mediating role of firm financing decision

2020 ◽  
Vol 7 (1) ◽  
pp. 1858640
Author(s):  
Umar Farooq ◽  
Jaleel Ahmed ◽  
Khurram Ashfaq ◽  
Ghias ul Hassan Khan ◽  
Shamshair Khan
Keyword(s):  
Financial Performance ◽  
National Culture ◽  
Financing Decision ◽  
Mediating Role ◽  
Firm Financial Performance ◽  
Firm Financing

scholarly journals Short-Selling and Financial Performance of SMEs in China: The Mediating Role of CSR Performance

2021 ◽  
Vol 9 (2) ◽  
pp. 22
Author(s):  
Wenzhen Mai ◽  
Nik Intan Norhan binti Abdul Hamid
Keyword(s):  
Financial Performance ◽  
Stock Exchange ◽  
Panel Data Analysis ◽  
Short Selling ◽  
Mediating Effect ◽  
Mediating Role ◽  
Firm Financial Performance ◽  
Corporate Executives ◽  
External Governance

The aim of this study is to examine the effect of short-selling deregulation on the financial performance of SMEs in China. The external governance role of short-selling is also tested by adopting corporate social responsibility (CSR) performance as the mediating effect. This study investigates a panel data analysis with a sample of 5038 firm-years of SMEs listed in Shenzhen Stock Exchange from 2010 to 2019. The PSM-DID method is adopted in this study to alleviate self-selection and endogenous problems to observe the comparable pure effect of short-selling deregulation, while the mediation test is conducted based on Baron and Kenny’s model. The finding of this study showed that the existence of short-selling could enhance firm financial performance and the mediating effect of CSR performance position in their relationship. In addition, the further analysis revealed that the mediating effect of CSR is more pronounced for family businesses and firms with high real short-selling threats. The robust test of alternative measurements is conducted and valid. This study provides insights for policymakers to consider further short-selling ban lifting and corporate executives to practice more CSR activities to improve the financial performance. Limitations and further implications of this study are also discussed.

scholarly journals Family influence and firm performance: the mediating role of stewardship

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Catarina Afonso Alves ◽  
Ana Paula Matias Gama ◽  
Mário Augusto
Keyword(s):  
Financial Performance ◽  
Structural Equation ◽  
Family Firms ◽  
Mediating Effect ◽  
Family Influence ◽  
Content Type ◽  
Organizational Attitudes ◽  
Mediating Role ◽  
Firm Financial Performance

PurposeThis study examines how stewardship might mediate the influence of family ownership on firm financial performance. The authors argue that differences in financial performance may reflect not only the family's influence but also the prevalence of a stewardship-oriented culture, across varying degrees of family influence.Design/methodology/approachThe measure of family influence uses the F-PEC scale: family [F], power [P], experience [E] and culture [C]. It supports cross-firm comparisons of different levels of family influence. To capture the multidimensional nature of family influence, this study uses structural equation modelling and measures the meditating effects of stewardship.FindingsThe results reveal a mediating effect of stewardship; family firms achieve better performance when they take advantage of and encourage stewardship attitudes among owners and leaders. Factors associated with stewardship behaviour, including stewardship motivation and stewardship culture, help explain why some family firms perform better than others.Practical implicationsWhen analysing the behaviour of family firms, interested entrepreneurs, managers and consultants should acknowledge that the family's influence entails both financial and emotional capital. The survival of the family businesses depends on balancing these aspects.Originality/valueIn response to calls for research into mediators of the complex relationship between family influence and firm outcomes, this study provides a novel explanation for performance-maximizing behaviours by organizations, in which pro-organizational attitudes coexist with self-serving motives.

The impact of leadership on firm financial performance: the mediating role of employees' readiness to change

2020 ◽  
Vol 41 (3) ◽  
pp. 333-347
Author(s):  
Kleanthis K. Katsaros ◽  
Athanasios N. Tsirikas ◽  
Georgia C. Kosta
Keyword(s):  
Financial Performance ◽  
Leadership Style ◽  
Readiness To Change ◽  
Shipping Industry ◽  
Content Type ◽  
Mediating Role ◽  
Firm Financial Performance ◽  
The Relationship ◽  
Practical Implications

PurposeThe aim of the research is to investigate the influence of leadership on firm financial performance and to explore the mediating role of employees' readiness to change.Design/methodology/approachThe paper hypothesizes that employees' readiness to change mediates the relationship between leadership and firm financial performance. A total of 213 employees of Greek shipping firms completed questionnaires examining their firms' leadership style and concurrently, their supervisors appraised their readiness to change. The research model was tested with the use of Structural Equation Modelling.FindingsThe research findings note the importance of leadership in fostering firm financial performance; they describe how each leadership style influences employees' readiness to change; as well as, they confirm that employee readiness mediates the relationship between leadership and firm financial performance. Theoretical and practical implications of these findings are analysed.Research limitations/implicationsGiven that the research was conducted during the severe Greek economic crisis, a time when employees' behaviour is highly influenced by distinctive and complex internal and external relationships, there is scope for further work to verify that the relationships identified in this study remain valid during periods when market conditions are more favourable.Practical implicationsThe findings provide further support on the significance of employees' readiness to change and the paper suggests policies for its development.Originality/valueThe originality of this study lies in the finding that employees' readiness to change mediates the relationship between leadership and firm financial performance. Further, the study was carried out in Greek shipping industry that plays a vital role in the international shipping industry which is responsible for the carriage of around 90% of world trade.

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

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