scholarly journals Board Gender Diversity and Firm Risk

2021 ◽  
Author(s):  
Zyed Achour
Keyword(s):  
Financial Stability ◽  
Gender Diversity ◽  
Corporate Boards ◽  
Global Risk ◽  
Firm Risk ◽  
Upper Echelon Theory ◽  
The Board Of Directors ◽  
Female Presence ◽  
Effect Estimation ◽  
Board Gender Diversity

In this chapter, we address the following question: Does board gender diversity affect global risk? Drawing on agency theory, upper echelon theory, and human capital theory, we hypothesize that gender diversity on the board of directors will decrease the volatility of firm risk. Applying fixed effect estimation on a panel data of listed French companies (SBF120) for the years 2011–2018, the results show a negative link between the percentage of female directors on the board and the standard deviation of monthly stock return as firm risk proxy suggesting that the inclusion of more women on corporate boards could improve financial stability. Our findings contribute to the literature by providing empirical evidence from France occupying the first place at the European level with the most female presence on the boards of directors.1

Board gender diversity: performance and risk of Brazilian firms

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Mauro Mastella ◽  
Daniel Vancin ◽  
Marcelo Perlin ◽  
Guilherme Kirch
Keyword(s):  
Firm Performance ◽  
Boards Of Directors ◽  
Gender Diversity ◽  
Ordinary Least Squares ◽  
Firm Risk ◽  
Content Type ◽  
Study Approach ◽  
Female Presence ◽  
Board Gender Diversity ◽  
The Impact

Purpose This study aims to intend to check if female board representation affects performance and risk and to analyse the evolution of the demographic aspects of the presence of women on boards in Brazil. Design/methodology/approach The authors used a sample of 150 Brazilian publicly traded companies from 2010–2018, with different measures of firm performance, firm risk and women’s presence on the board. The study approach is based on a set of ordinary least squares, quantile and panel data regressions. Findings The presence of women on the board has a positive effect on all of our accounting and market performance measures. However, the result of the impact on risk is not conclusive. The study also found that the number of females on the board has a more significant effect at the lower levels of firm performance measured by return on equity, but at the higher levels when measured by Tobin’s Q. Regarding return on assets, the more significant effect happened on the extremes of the performance distribution. The study findings point that market investors place more value in female presence on the board than in director positions. Originality/value By estimating the impact of women’s presence on the boards of directors in firm performance and risk, this study aimed to verify this impact in different aspects of the company. In addition, the authors did so in a sample with many years, making it possible to evaluate the historical evolution of the feminine presence in the boards of administration as well as in the groups of directors, assisting Brazilian legislators with new evidence about the possible impacts of Draft Law 7179/2017.

scholarly journals Gender Diversity in Corporate Boards: A Comparative Study of Pakistan and Norway

2021 ◽  
Vol 3 (1) ◽  
pp. 28-37
Author(s):  
Tayyaba Noor Asghar
Keyword(s):  
Corporate Governance ◽  
Gender Diversity ◽  
Corporate Boards ◽  
Legal Research ◽  
Secondary Sources ◽  
The Board Of Directors ◽  
And Performance ◽  
Board Gender Diversity ◽  
The Impact ◽  
Mixed Nature

With the increased attention given to corporate governance, there has been more focus on the lack of gender diversity in corporate boards. Within the context of corporate governance, this research focuses on the gender diversity in the boardrooms and to evaluate how the percentage of female directors on a company’s board affects the firm’s performance. For this purpose, Gender diversity in both Norway and in the Pakistan are studied, but this study more focuses on the Pakistan’s board gender diversity, legislations, implementation and its impact on company’s performance, this study also focuses on Norwegian experience and the impact of the Norwegian gender diversity rule. This study is conducted by a qualitative research and a socio-legal research methodology due to library based and its mixed nature of being legal and corporate respectively. This study is also based on primary as well as secondary sources. The results of this study show that there is observable performance benefit to adding more females to the board of directors. Companies found a significant and positive relationship between the percentage of women on the board and performance. These results suggest that if Pakistan decides to adopt strong legislation for corporations in relation to gender diversity and implement them; it will observe significant improvement in firm performance.

scholarly journals Women on Boards and Firm Performance: A Microeconometric Search for a Connection

2020 ◽  
Vol 13 (9) ◽  
pp. 218
Author(s):  
Marek Gruszczyński
Keyword(s):  
Firm Performance ◽  
Gender Diversity ◽  
Annual Reports ◽  
Company Performance ◽  
Corporate Boards ◽  
Econometric Evidence ◽  
Women On Boards ◽  
Modern Business ◽  
Improved Performance ◽  
Female Presence

This paper discusses questions of the gender diversity of corporate boards vis-à-vis firm performance. Typically, researchers have asked if a female presence is associated with improved performance and more transparent governance. The paper’s first part reports on several econometric attempts in the quest to prove the existence of such an association. The primary outcome is that the results vary over geographical, cultural, and time settings. The study presented in the second part examines European firms’ annual reports from 2015. Binomial models, multiple regression, and quantile regression are applied resulting in the finding that female presence on a board is not significantly related to firm performance for this sample. Together with the picture that emerged from the paper’s first part, this result leads to the possibility that the search for an association between women on boards and company performance is not fundamental. Nevertheless, modern business societies worldwide may need to boost the female presence on managerial bodies. Current econometric evidence indicates that this is not harmful to corporate results.

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

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.

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

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.

scholarly journals Can board gender diversity promote corporate social performance?

2017 ◽  
Vol 17 (5) ◽  
pp. 789-802 ◽  
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.

scholarly journals Multiple Layers of Gender Diversity on Corporate Boards: To Force or Not to Force?

2014 ◽  
Vol 19 (1) ◽  
pp. 1 ◽  
Author(s):  
Jean Du Plessis ◽  
James O'Sullivan ◽  
Ruth Rentschler
Keyword(s):  
Best Practice ◽  
Critical Mass ◽  
Gender Diversity ◽  
Business Case ◽  
Corporate Boards ◽  
Corporate Board ◽  
Board Diversity ◽  
Historical Perspectives ◽  
Board Gender Diversity ◽  
The Right

This article examines diversity on corporate boards, focussing on gender diversity and taking both contemporary and historical perspectives. Australia forms a particular focus of this article, but, as far as mandatory quota legislation is concerned, other jurisdictions provide comparisons. The authors illustrate how Australian corporate board gender diversity is starting from a low base in contrast to some other types of boards. Arguments for and against more women on boards are analysed in order to provide a comprehensive examination of extant research. The article also examines briefly whether a business case can be made for board gender diversity within the wider framework of board diversity. The authors acknowledge that there are unanswered questions about the right gender balance on boards and whether, without mandatory quota legislation, a voluntary system can achieve best practice targets. They explore the notion of critical mass - the idea that, upon board representation reaching approximately 15 per cent, efforts to further redress the imbalance may lose momentum. Their conclusion is that, in the Australian jurisdiction, progress is being made belatedly towards increasing gender diversity on corporate boards. However, substantial challenges are envisaged if significant progress is not made imminently to increase the number of women serving on corporate boards.

scholarly journals Gender Diversity as the Antidote to ‘Groupthink’ on Corporate Boards

2018 ◽  
Vol 22 (1) ◽  
pp. 85
Author(s):  
Akshaya Kamalnath
Keyword(s):  
Gender Diversity ◽  
Board Members ◽  
Corporate Boards ◽  
Women Directors ◽  
Professional Background ◽  
Decision Making Processes ◽  
Board Gender Diversity ◽  
Board Decision Making ◽  
Significant Question

Gender diversity on corporate boards has become a point of emphasis, to the exclusion of all other forms of diversity. This paper analyses whether board gender diversity might help boards overcome groupthink (i.e. the failure of board members to consider alternatives to the dominant view when making decisions). This is a significant question because the board is reponsible for governance of the company and groupthink is often cited as a hurdle to effectively performing this role. Thus, the paper first examines the role of the board, board decision-making processes and the problem of groupthink, and subsequently, the potential of gender diversity to overcome groupthink. It concludes that gender diversity on corporate boards might help overcome groupthink so long as the women directors are also independent and bear ‘outsider’ status. However, other forms of diversity like race, education, tenure, professional background etcetera might offer the same benefits and thus should not be overlooked.

Independent board, gender diversity and bank performance in Nigeria: a system-GMM approach

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Chinwe Okoyeuzu ◽  
Augustine Ujunwa ◽  
Angela Ifeanyi Ujunwa ◽  
Emmanuel Onyebuchi Onah
Keyword(s):  
Gender Diversity ◽  
Bank Performance ◽  
Board Independence ◽  
Annual Data ◽  
Corporate Boards ◽  
Female Representation ◽  
Content Type ◽  
And Gender ◽  
Board Gender Diversity ◽  
Negative Predictor

Purpose This study aims to examine the effects of board independence and gender diversity on bank performance in Nigeria. Design/methodology/approach The two-step system-generalized method moment was used to estimate the effect of board independence and gender diversity on bank performance in Nigeria using annual data of 15 deposit money banks from 2006 to 2018. Findings The results revealed that gender diversity is a significant positive predictor of bank performance, whereas board independence is a negative predictor of bank performance in Nigeria. Practical implications Despite the significant positive relationship between gender diversity and bank performance, this paper does not recommend mandatory quota-based initiates of female representation on corporate boards because of the increasing number of female representations on corporate boards of banks in Nigeria. Originality/value The study contributes to corporate governance literature from developing country perspective and policy, particularly, on the relevance or otherwise of market-based measures in assessing bank performance in developing counties. This paper finds that market-based variables are not good measures of firm performance in economies with underdeveloped markets.

Executive Women and Firm Economic Value

2021 ◽  
pp. 345-361
Author(s):  
Inês Lisboa ◽  
João Teodósio
Keyword(s):  
Economic Value ◽  
Gender Diversity ◽  
Value Added ◽  
Executive Women ◽  
Listed Firms ◽  
The Board Of Directors ◽  
Female Presence ◽  
Market Value Added ◽  
Traditional Performance ◽  
Value Added Measures

This study analyses the relationship between gender diversity on the board of directors' executive roles and the firm economic value. Based on a sample of Portuguese non-financial listed firms, between 2010 and 2018, results show that executive female contribute to decrease the firm economic value-added, and CEO gender diversity to decrease market value added, while no impact is found to traditional performance measures. Since the presence of women on the board of Portuguese firms is still scarce, female presence is not seen as relevant to add value to firms. These results are pioneer since previous studies found no impact of female presence on boards on value added measures. Moreover, findings show the relevance of value-added measures to analyze performance and singularities compared to profitability measures.

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