Social Sustainability on Corporate Boards: The Effects of Female Family Members on R&D

There is growing institutional and social pressure for greater balance, parity, and equality at the highest levels of corporations. This is coupled with an increasing interest in analysing the effects of gender diversity on corporate boards. However, companies may only reap the benefits of gender diversity by achieving better qualified and more independent boards. This study aims to contribute to the open debate on the effects of board gender diversity on R&D, by taking into account the independence of female directors. Panel regression analyses were performed with data for 67 Spanish-listed companies during the 2003–2019 period. Our results confirm the positive effects of gender diversity on R&D. However, this positive influence is lower if female directors have family links with male members on the board. These findings have policy implications, regarding the need to increase gender equality in corporate boards for social and sustainability purposes, while the benefits are conditioned by the independence of female directors. The value of this research rests on the study of the effects, beyond the mere analysis of financial performance of the gender diversity of boards.

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Gender-diverse boards get better performance on mergers and acquisitions

Corporate Ownership and Control ◽

10.22495/cocv17i4siart1 ◽

2020 ◽

Vol 17 (4, Special Issue) ◽

pp. 222-233 ◽

Cited By ~ 1

Author(s):

Nivo Ravaonorohanta

Keyword(s):

Gender Diversity ◽

Value Added ◽

Corporate Boards ◽

Representation Of Women ◽

Female Directors ◽

Gender Diverse ◽

Women On Boards ◽

And Gender ◽

Board Gender Diversity ◽

Executive Teams

In recent years, the composition of boards, particularly the appointment of female directors to the boardroom has attracted significant political and social debate. Despite several studies that have examined links between the representation of women on boards and the corporate performance, research on the board gender diversity in merger contexts is limited. We assess whether the presence of women on corporate boards affects merger and acquisition (M&A) performance. Using acquisition bids by public Canadian companies during 2012-2017, we find that an increasing number of female directors in acquiring companies is associated with an enhanced merger performance and a reduced bid premium. After controlling for gender diversity on executive teams, the value added by having women on boards is particularly noticeable when acquiring firms have few women in the executive teams, and where overconfidence is prevalent. Thus, there is a substitutive relation between gender diversity on the board and gender diversity on the executive team.

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Assessing the Effect of Board Gender Diversity on CSR Reporting Through Moderating Role of Political Connections in Chinese Listed Firms

Frontiers in Psychology ◽

10.3389/fpsyg.2021.796470 ◽

2021 ◽

Vol 12 ◽

Author(s):

Riffat Shaheen ◽

Hailan Yang ◽

Muhammad Yaseen Bhutto ◽

Hussaini Bala ◽

Fahad Najeeb Khan

Keyword(s):

Boards Of Directors ◽

Gender Diversity ◽

Business Environment ◽

Political Connections ◽

Institutional Setting ◽

Corporate Boards ◽

Listed Firms ◽

Csr Reporting ◽

Female Directors ◽

Board Gender Diversity

This study departs from existing work on board gender diversity (BGD) and corporate social responsibility (CSR) reporting by analyzing and explaining the mechanism by which gender-diverse boards in politically embedded firms (PEFs) affect firms’ CSR reporting choices in a unique institutional setting of Chinese listed firms from 2010 to 2018. The following main results are obtained. First, having female directors and executives with political connections (PCs) on corporate boards improves the CSR reporting of firms. Firms with PCs have a greater possibility to issue CSR reports than their non-connected counterparts. Second, firms that have both gender diversity and PCs on their boards of directors are more likely to engage in CSR reporting. There is an indication that the presence of PCs on boards can strengthen the effect of female directors on firms’ CSR reporting. Third, the presence of female directors on corporate boards has a stronger relationship with CSR reporting in PEFs than in non-PEFs. The study concludes that both BGD and PCs on corporate boards positively influence the diffusion of CSR-related practices in the Chinese business environment.

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Does Board Gender Diversity Bring Better Financial and Governance Performances? An Empirical Investigation of Cases in Taiwan

Sustainability ◽

10.3390/su12083205 ◽

2020 ◽

Vol 12 (8) ◽

pp. 3205 ◽

Cited By ~ 1

Author(s):

Yu-Hui Wang

Keyword(s):

Corporate Governance ◽

Gender Diversity ◽

Critical Factor ◽

Positive Association ◽

Theoretical Argument ◽

Corporate Boards ◽

Research Attention ◽

Female Directors ◽

Board Gender Diversity ◽

The Impact

Gender diversity, one of the core streams of top management team (TMT) diversity research, poses a theoretical argument valuable for firms—whether gender diversity among board members can lead to improved performance. Increased research attention on the relationship between gender diversity and the financial and governance performance of firms has produced inconclusive results. This study shapes the gender diversity of corporate boards by defining six compounding elements, which is the major contributor to the literature of gender diversity. This study aims to provide a more complete and precise assessment of the impact of gender diversity on a firm’s performance and corporate governance performance from the Taiwanese experience. The evidence in Taiwan suggests that increased board gender diversity does not have a positive effect on financial and governance performance. Only the ratio of female independent directors is found to have a significantly positive association with a firm’s performance, supporting prior findings that directors with greater independence are better able to perform their monitoring function and thus contribute to performance. The results also demonstrate that female directors having concurrent posts is a critical factor in enhancing corporate governance performance. Female directors with prior experience as serving directors or supervisors in other companies can offer diverse opinions and network ties, thus contributing to improved cohesion and corporate governance. The findings of this research can contribute to both literature and practice in board gender diversity issues and can serve as an empirical basis for enterprises in optimizing their board composition.

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Does board gender diversity affect firm performance? Empirical evidence from Standard & Poor’s 500 Information Technology Sector

Financial Innovation ◽

10.1186/s40854-021-00265-x ◽

2021 ◽

Vol 7 (1) ◽

Author(s):

Liliana Nicoleta Simionescu ◽

Ştefan Cristian Gherghina ◽

Hiba Tawil ◽

Ziad Sheikha

Keyword(s):

Information Technology ◽

Fixed Effects ◽

Gender Diversity ◽

Ordinary Least Squares ◽

Positive Influence ◽

Company Performance ◽

Corporate Boards ◽

Technology Sector ◽

Information Technology Sector ◽

Board Gender Diversity

AbstractThe essence of this study is to investigate the influence of the board gender diversity on firms’ accounting and market-based performance using a sample of Standard & Poor’s 500 companies belonging to the information technology sector over 12 years. Using the pooled ordinary least squares (OLS) method, the outcomes provide evidence for a positive influence of women on corporate boards on both measures of company performance, except for the percentage of female executives in the case of return on assets (ROA). After estimating the fixed effects and random-effects through panel data, the econometric outcomes show no statistically significant association among board gender diversity and ROA but a positive influence of the number and percentage of women on board on price-to-earnings ratio.

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Do Female Directors on Corporate Boards Make a Difference in Family Owned Businesses?

Journal of International Accounting Research ◽

10.2308/jiar-17-561 ◽

2019 ◽

Vol 19 (1) ◽

pp. 85-102 ◽

Cited By ~ 5

Author(s):

Barbara Sveva Magnanelli ◽

Luigi Nasta ◽

Elisa Raoli

Keyword(s):

Firm Performance ◽

Family Firms ◽

Negative Impact ◽

Gender Diversity ◽

Family Businesses ◽

Corporate Boards ◽

Listed Firms ◽

Female Directors ◽

And Performance ◽

Gender Quota

ABSTRACT This paper investigates how the presence of female directors on corporate boards impacts the performance of family firms. This study enriches the literature on gender diversity on corporate boards and its effects on firm performance by focusing on a country in which family businesses are dominant. The empirical analysis is conducted on a sample of 165 Italian-listed firms from 2011 to 2016, representing the period during which the mandatory gender quota law was introduced and implemented in Italy. The results show a positive relationship between the presence of women on corporate boards and firm performance, specifically in family owned businesses. These findings lead to the conclusion that female directors do not have a negative impact on firm performance. And, given the domination of family businesses and a mandatory gender quota law in Italy, this study makes a regulatory and performance assessment not previously examined in the literature. JEL Classifications: M1; M12; M48; M21.

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Board gender diversity and environmental, social and governance performance of US banks: moderating role of environmental, social and corporate governance controversies

International Journal of Bank Marketing ◽

10.1108/ijbm-04-2020-0210 ◽

2020 ◽

Vol ahead-of-print (ahead-of-print) ◽

Author(s):

Mohammad Hassan Shakil ◽

Mashiyat Tasnia ◽

Md Imtiaz Mostafiz

Keyword(s):

Corporate Governance ◽

Fixed Effects ◽

Resource Dependence ◽

Gender Diversity ◽

Corporate Boards ◽

Omitted Variables ◽

Content Type ◽

Dynamic Panel Regression ◽

Board Gender Diversity

PurposeGender diversity in corporate boards is broadly studied in existing corporate governance literature. However, the role of board gender diversity on environmental, social and governance (ESG) performance of the banks is still unaccounted for. Drawing on resource dependence and legitimacy theory, this study addresses this pressing research issue. Moreover, investigation of ESG controversies as a moderator paves the existing corporate governance research to the new avenues.Design/methodology/approachData were sourced from Refinitiv database on 37 US banks from the period of 2013 to 2017. This study employs static and dynamic panel regression models that include random effects, fixed effects and dynamic generalised method of moments (GMMs) to test the hypotheses. Furthermore, system GMM is used to reduce the issue of endogeneity, measurement error, omitted variables bias and bank-specific heterogeneity.FindingsWe identify a significant positive relationship between board gender diversity and the ESG performance of US banks. However, the result propounds non-significant moderating effect of ESG controversies on the board gender diversity–ESG performance nexus.Originality/valueLiterature on board gender diversity and ESG separately and predominantly explains firm/bank's financial performance. This study is one of the pioneering attempts to explain the role of board gender diversity on ESG performance. Although incremental, however, this study also contributes to the literature on ESG in the US context.

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Board gender diversity and firm performance: evidence from the Russian agri-food industry

International Food and Agribusiness Management Review ◽

10.22434/ifamr2019.0011 ◽

2020 ◽

Vol 23 (1) ◽

pp. 35-53 ◽

Cited By ~ 1

Author(s):

Alisher Tleubayev ◽

Ihtiyor Bobojonov ◽

Taras Gagalyuk ◽

Thomas Glauben

Keyword(s):

Firm Performance ◽

Large Scale ◽

Positive Impact ◽

Critical Mass ◽

Gender Diversity ◽

Policy Makers ◽

Global Food Security ◽

Female Directors ◽

Corporate Executives ◽

Board Gender Diversity

This study provides pioneering empirical evidence on board gender diversity and firm performance relationship for the case of large-scale agri-food companies in Russia. While Russia plays an important role in the global food security, its domestic agri-food production is heavily dependent on large scale producers. Our findings suggest a strong positive link between the percentage of female directors in boardrooms and firm performance. Moreover, in line with critical mass theory, boards with three or more female directors have greater impact on firm performance compared to boards with two or less female directors. Further analysis shows that the presence of female directors in the company has a positive impact on firm performance, mainly due to their executive, rather than monitoring effects. The paper shed light on gender diversity of Russian corporate boardrooms and provides empirical recommendations for policy makers as well as corporate executives in Russia.

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Board gender diversity, corporate governance, and earnings management

Gender in Management An International Journal ◽

10.1108/gm-03-2018-0027 ◽

2019 ◽

Vol 35 (1) ◽

pp. 37-60 ◽

Cited By ~ 5

Author(s):

Nurlan Orazalin

Keyword(s):

Corporate Governance ◽

Earnings Management ◽

Management Practices ◽

Gender Diversity ◽

Policy Implications ◽

Annual Reports ◽

Public Companies ◽

Content Type ◽

Weak Evidence ◽

Board Gender Diversity

Purpose The purpose of this study is to examine whether board gender diversity and other board characteristics affect earnings management practices of top public companies in Kazakhstan. Design/methodology/approach The study analyzes data of top public companies for the period 2010-2016. Data on corporate governance were manually collected from annual reports and investment memorandums, and financial data were collected from audited financial statements. Findings The empirical results show that companies with greater board gender diversity are more effective in constraining earnings management. The findings also indicate that companies with larger boards adopt a more restrained approach to earnings management practices, thus supporting the theoretical framework of the study. However, the results provide weak evidence of the association between board independence and earnings quality. Originality/value This study is the first to investigate the relationship between gender diversity and earnings management in emerging markets such as Kazakhstan that offers managerial and policy implications.

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A social capital view of women on boards and their impact on firm performance

Managerial Finance ◽

10.1108/mf-02-2020-0091 ◽

2020 ◽

Vol ahead-of-print (ahead-of-print) ◽

Author(s):

Erin Oldford ◽

Saif Ullah ◽

Ashrafee Tanvir Hossain

Keyword(s):

Social Capital ◽

Firm Performance ◽

Ethnic Diversity ◽

Gender Diversity ◽

Negative Relationship ◽

Future Research ◽

Corporate Boards ◽

Board Diversity ◽

Content Type ◽

Board Gender Diversity

PurposeThe objective of this paper is to leverage a two-sided view of social capital to develop a model of board gender diversity and firm performance using social capital data from Northeast Regional Center of Rural Development.Design/methodology/approachThe authors examine a large sample of 2,322 US publicly listed firms over the period 1996 to 2009. The final sample consists of 14,634 firm-year observations.FindingsThe authors find that when a firm's social network is not supportive of gender diversity, corporate boards have lower levels of female representation. The strength of a social network's social ties exacerbates the relationship between social capital and board gender diversity. The authors also report a negative relationship between female board membership and firm performance in social networks that are not pro-diversity. Robustness tests reveal that the authors’ social capital view of board diversity also applies to board ethnic diversity.Research limitations/implicationsThis study focuses primarily on blue chip firms due to data constraints. It will be interesting for future researchers to investigate a broader spectrum of firms from a broader perspective of diversity beyond the study’s gender and ethnicity findings. Furthermore, this study assesses the US context, and future research could investigate firm sociability in other national contexts.Practical implicationsThis study contributes new insights to the discourse on gender diversity on corporate boards which stand to inform both policy and practice. The results of the study can inform the position of an industry association on board gender diversity, with guidance on how messaging across networks can be more effective should it account for the hidden bias that the authors uncover in the current study. From a manager's perspective, this study can help those managers and boards trying to enhance board gender diversity by providing a more complete understanding of the factors that can limit progress.Originality/valueThis study contributes a social capital view of board gender diversity to the growing literature of corporate governance, board diversity and local environmental influences on corporate policies.

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Can board gender diversity promote corporate social performance?

Corporate Governance ◽

10.1108/cg-09-2016-0183 ◽

2017 ◽

Vol 17 (5) ◽

pp. 789-802 ◽

Cited By ~ 21

Author(s):

Khine Kyaw ◽

Mojisola Olugbode ◽

Barbara Petracci

Keyword(s):

Emerging Markets ◽

Corporate Social Performance ◽

Social Performance ◽

Critical Mass ◽

Gender Diversity ◽

Corporate Boards ◽

Content Type ◽

Clear Cut ◽

Board Gender Diversity ◽

Corporate Social

Purpose This paper examines if gender diversity on corporate boards promotes corporate social performance (CSP) across industries and across countries. Design/methodology/approach Fixed-effect panel models are estimated using Europe-wide data from 2002 through 2013. Instrumental variable estimation and propensity score matching are also used to control for potential endogeneity. Findings Board gender diversity (BGD) improves environmental and social performance and consequently the CSP. Although the positive effect of gender diversity is prevalent across industries, the effect is more pronounced for firms in emerging markets. Practical implications The findings suggest that gender law that fosters gender diversity can promote CSP in firms, and the benefit can be enjoyed with just an introduction of one female director to the board. Promotion of gender diversity in Europe is most beneficial in emerging markets. Originality/value The results provide new insights to the literature, as we find that a critical mass of female directors on boards is not required to promote CSP. The research also highlights that BGD enhances CSP irrespective of the industry, and the effect on CSP is more pronounced in emerging markets where regulations regarding CSR are not so clear-cut.

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