scholarly journals Diversity of the Board of Directors and Financial Performance of the Firms

2021 ◽  
Vol 13 (21) ◽  
pp. 11687
Author(s):  
Felipe Arenas-Torres ◽  
Miguel Bustamante-Ubilla ◽  
Roberto Campos-Troncoso
Keyword(s):  
Stock Market ◽  
Financial Performance ◽  
Board Of Directors ◽  
Boards Of Directors ◽  
Gender Diversity ◽  
Gender Quotas ◽  
Governance Practices ◽  
The Board Of Directors ◽  
And Gender ◽  
Nationality Diversity

The diversity of the board of directors continues to be a matter of concern for investors, regulators, and the general public. In this sense, the purpose of the research presented was to identify whether there is a positive and significant impact between the diverse variables of the board of directors and the financial performance of the firms. In this context, the study’s objective was to determine if the diversity in the composition of the boards of directors has a positive and significant impact on the financial performance of the companies listed in the Chilean stock market. The study considered a sample of 1106 reports on social responsibility and sustainable development between the 2015–2020 period and their respective returns. The research was descriptive-correlational, which determined the incidence of gender, nationality, and age diversity in the financial performance of the firms. The results show, in general, a low degree of gender and nationality diversity in Chilean boards. However, a positive and significant impact is observed in the commercial sector, nationality diversity, and the construction and gender diversity axis. In this regard, the study allows confirming the heterogeneity of results by linking the variables of diversity and financial performance and the importance of conducting sufficiently disaggregated studies to understand the relationship between both types of variables. Finally, this study updates the diversity levels of the board of directors for the Chilean stock market and establishes challenges for the regulator in terms of gender quotas and good corporate governance practices.

Women representation on boards: a South African perspective

2016 ◽  
Vol 24 (2) ◽  
pp. 211-225 ◽  
Author(s):  
Gizelle Willows ◽  
Megan van der Linde
Keyword(s):  
Corporate Governance ◽  
Financial Performance ◽  
Board Of Directors ◽  
Boards Of Directors ◽  
Critical Mass ◽  
Gender Diversity ◽  
Current Status ◽  
Company Performance ◽  
Content Type ◽  
The Board Of Directors

Purpose By looking at both theoretical and empirical findings, this study aims to investigate whether gender diversity results in improved corporate governance and financial performance for companies. Design/methodology/approach An analysis of the board composition of the Johannesburg Securities Exchange Top 40 companies as at 30 June 2013 and a comparison of the financial performance of the company were conducted. Findings Female directors were found to make up, on average, 18.78 per cent of the board of directors, with the majority of these women being in non-executive positions. Women representation appears to influence company performance positively when using accounting-based measures of performance (such as return on assets and return on equity), but negatively when using market-based measures (such as Tobin’s Q). The critical mass concept is also assessed and is found to have a positive effect. Originality/value These findings are of relevance to the boards of directors adhering to corporate governance requirements by challenging the role of women on the board of directors, as well as that of investors and those in practice, to understand the current status of women representation.

scholarly journals Diversity in the board of directors and good governance practices

2020 ◽  
Vol 9 (2) ◽  
pp. 97
Author(s):  
Álvaro Melón-Izco ◽  
Francisco J. Ruiz-Cabestre ◽  
M. Carmen Ruiz-Olalla
Keyword(s):  
Corporate Governance ◽  
Board Of Directors ◽  
Boards Of Directors ◽  
Good Governance ◽  
Gender Diversity ◽  
Positive Influence ◽  
Board Diversity ◽  
Corporate Governance Mechanisms ◽  
Governance Practices ◽  
The Board Of Directors

Motivated by the debate on the adequacy of the composition of boards of directors, we examine the effect that board diversity has on corporate governance performance in Spain, analysing gender diversity, diversity of director types and tenure diversity. The findings reveal that diverse boards of directors have a positive influence on good governance practices,improving the efficiency of corporate governance mechanisms. These results could be interesting for practitioners and regulators.

scholarly journals Board diversity and R & D investment

2016 ◽  
Vol 54 (3) ◽  
Author(s):  
Jeanelle Midavaine ◽  
Wilfred Dolfsma ◽  
Rick Aalbers
Keyword(s):  
Board Of Directors ◽  
Boards Of Directors ◽  
Design Methodology ◽  
Gender Diversity ◽  
Board Diversity ◽  
Type Design ◽  
The Board Of Directors ◽  
And Gender ◽  
D Investment ◽  
Practical Implications

Purpose The purpose of this paper is to investigate the effect of board diversity on the extent to which firms invest in R&D. Design/methodology/approach Based on data collected about the composition of the board of directors, we determine statistically if the characteristics of directors predicts the extent to which firms invest more in R&D. Findings We find, unexpectedly, that tenure diversity lead firms to invest less in R&D, while education diversity and gender diversity makes firms invest more. Gender diversity positively moderates education diversity as well, strengthening the effect found. Research limitations/implications The sample of firms we include in our paper is restricted due to the overwhelming difficulty in collecting data about the composition of boards of directors, and their backgrounds. Practical implications The paper offers insights into how boards of directors might need to be composed in order to try have firms invest more in R&D. Originality/value We include a much larger set of diversity measures than any previously published study, and provide counter-intuitive findings that have implications for practice, society, as well as theory about team composition.

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

Financial performance and gender diversity. The effect of family management after a decade attempt

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Kofi Mintah Oware ◽  
Thathaiah Mallikarjunappa
Keyword(s):  
Stock Market ◽  
Financial Performance ◽  
Role Theory ◽  
Social Role ◽  
Gender Diversity ◽  
Family Management ◽  
Social Role Theory ◽  
Content Type ◽  
Listed Firms ◽  
And Gender

Purpose The purpose of this study is to investigate family management, financial performance and gender diversity of listed firms. Design/methodology/approach Using the India stock market as a testing ground, this paper used descriptive statistics and panel regression with random effect assumptions in the analysis of 800 firm-year observations between 2010 and 2019. Findings The findings show that an improvement in stock price returns leads to a corresponding increase in women employment. Also, the study shows that an increase in family-managed firms leads to a decrease in the number of women employed in listed firms. This paper speculates using the social role theory that family involvement may see women as the weaker vessel and with a role to concentrate on raising children and handling house affairs. The consequence is a decrease in women employment. The study also shows that the interactive variable of financial performance (return on assets and return on equity) × family-managed firms still causes a decrease in women employment. This paper perceives that managers in family-managed firms see women as weaker vessels and home managers which is consistent with the Indian culture. The results are robust after controlling for endogeneity. Research limitations/implications The research study is limited to large firms on the Indian stock market that submit sustainability reports and also used a single country data that can potentially limit the generalisation of the study. Originality/value No studies have combined social role theory in examining the effect of family management on gender diversity in the emerging markets.

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 Board Gender Diversity, Network and Firms’ Performance in the Italian Listed Companies

2016 ◽  
Vol 11 (10) ◽  
pp. 332 ◽  
Author(s):  
Francesca Di Donato ◽  
Delio Panaro ◽  
Sara Trucco
Keyword(s):  
Board Of Directors ◽  
Boards Of Directors ◽  
Gender Diversity ◽  
Listed Companies ◽  
Quantitative Information ◽  
Network Ties ◽  
Text Documents ◽  
Gender Minority ◽  
The Board Of Directors ◽  
Board Gender Diversity

The paper aims at analysing the effect of women serving on the boards of directors, especially after the introduction of gender minority (Law 120/2011 and Consob n. 18098/2012),<em> </em>and the network ties on boardrooms on the overall firms’ performance in the Italian context. Gender minority is defined as the percentage of women on the board of directors, whereas the network ties represent companies which are connected through shared board members. To do this, we selected a sample of industrial Italian listed companies during the period 2011-2013 and we downloaded the mandatory reports of corporate governance of each firm in our sample time period in order to extract the components of the board of directors and their characteristics. We performed a set of regression analysis to evaluate whether the participation of women in the firm’s board of directors and the presence of connections among boardrooms enhance the financial performance measured through Tobin’s Q and Return On Asset (ROA). Empirical results contribute to extend scientific literature about this topic and to provide interesting practical contributions on the role of gender minority and the connections among companies on firms’ performance. Parallel, this research develops topics related to text mining (that is the automatic extraction of quantitative information from text-documents) referring to all the firms’ disclosures, produced in the Italian language.

scholarly journals Analisis Pengaruh Diversitas Gender, Kepemilikan Institusional, dan Ukuran Perusahaan terhadap Kinerja Keuangan

2018 ◽  
Vol 16 (1) ◽  
pp. 64 ◽  
Author(s):  
Dewi Sri ◽  
Lisaime .
Keyword(s):  
Financial Performance ◽  
Board Of Directors ◽  
Firm Size ◽  
Sampling Method ◽  
Stock Exchange ◽  
Gender Diversity ◽  
Institutional Ownership ◽  
Manufacturing Companies ◽  
The Board Of Directors ◽  
Positive Effect

Research on the analysis of the effect of gender diversity, institutional ownership, and firm size on financial performance using the population of manufacturing companies listed on the Indonesia Stock Exchange (IDX). Sampling was done by purposive sampling method as many as 65 companies. This study wants to see the effect of gender diversity, institutional ownership, and firm size on financial performance. Based on the results of testing the hypothesis obtained that Ha is accepted, namely institutional ownership has a positive effect on financial performance. While the hypothesis for the gender of the board of directors, the gender of the board of directors and the size of the company shows that H0 is accepted, namely the gender of the board of directors, the gender of the board of directors, and the size of the company does not have a positive effect on financial performance

scholarly journals Board features and financial performance of Nigerian banks

2021 ◽  
Vol 10 (1) ◽  
pp. 11-19
Author(s):  
Abubakar Biu Aliyu ◽  
Onipe Adabenege Yahaya ◽  
Nma Ahmed Mohammed
Keyword(s):  
Financial Performance ◽  
Board Of Directors ◽  
Firm Size ◽  
Board Member ◽  
Independent Directors ◽  
Board Composition ◽  
Board Size ◽  
The Board Of Directors ◽  
And Gender ◽  
Financial Operation

The presence of contradictory theories and unpredictable empirics calls for this paper to survey the outcome of board traits on financial operation of Nigeria banks. Financial performance of a firm is as important as the firm. Yet, very few studies have examined its impact by the board of directors in Nigeria. Data were obtained and perused using descriptive and inferential figures. Findings show that size of board has significant and constructive bearing on business piece. However, board composition takes undesirable significance. Meetings of board and gender failed to show significance. But, board member nationality and firm size show negative and significant effects. We added by exploring impacts of boards on financial performance. We asked firms to increase the size of the board and engage more independent directors and reduce the number of board diligence and size of the firm. The strong plus impact of board size and firm size on financial operations is an interesting result allowing for additional interrogation of why these behaviours.

scholarly journals Isolated islands in the upper apex of organisations: In search of interaction between the board of directors and the top management team

2013 ◽  
Vol 10 (2) ◽  
pp. 80-90 ◽  
Author(s):  
Timurs Umans ◽  
Elin Smith
Keyword(s):  
Firm Performance ◽  
Boards Of Directors ◽  
Gender Diversity ◽  
Study Data ◽  
Top Management Teams ◽  
Annual Reports ◽  
Top Management ◽  
Consolidated Financial Statements ◽  
The Board Of Directors ◽  
And Gender

This paper reports on the interaction of compositional effects of boards of directors (BoD) and top management teams (TMTs) on firms’ financial performance. Composition of both groups is investigated for cultural, age, tenure and gender diversity. We explore effects of demographic diversity in the two power groups on performance in interaction with each other by bringing in the similarity-attraction paradigm to argue for the relationship. Study data are from consolidated financial statements in annual reports of listed Swedish corporations. Our findings suggest that while differences in gender, age and tenure diversities have no effect on firm performance, close alignment of cultural diversities of the BoD and TMT does have a positive effect of firm performance

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