Corporate governance practices and capital structure decisions: the moderating effect of gender diversity

Zaid, Mohammad A.A.; Wang, Man; Abuhijleh, Sara T.F.; Issa, Ayman; Saleh, Mohammed W.A.; Ali, Farman

doi:10.1108/cg-11-2019-0343

Cited by 89 publications

(60 citation statements)

References 129 publications

(180 reference statements)

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“…To holistically investigate the board gender diversity on corporate environmental performance, a set of the most common proxies of boardroom diversity are used. In this vein, our main independent variable is the percentage of female directors on the board (BGD) (Nadeem et al, 2020;Cucari et al, 2018;Glass et al, 2016;Zaid et al, 2020c;Zhong et al, 2014). We also apply several alternative proxies such as a robustness check: the Blau and Shannon indices[1] of gender diversity, the number of female directors on the board and dummy variable for the presence of women on the board.…”

Section: Sample and Data Collectionmentioning

confidence: 99%

Boardroom gender diversity and corporate environmental performance: a multi-theoretical perspective in the MENA region

Issa

Zaid

2021

IJAIM

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Purpose Drawing on the multi-theoretical perspective, the primary purpose of this paper is to empirically investigate the inextricably entwined nexus between board gender diversity and corporate environmental performance within cross-country context. Design/methodology/approach Multiple regression analysis on a cross-country panel data analysis was used. Further, the authors applied static panel data estimator ordinary least squares (OLS) as a baseline model with different proxies of gender diversity. In addition, to control for the potential endogeneity problem and providing robust findings, the authors run two-stage least squares (2SLS) and lagged independent variables. Findings The findings clearly unveiled that corporate environmental performance is positively and significantly affected by the level of gender diversity on board. This inextricable and intimate nexus is vastly attributed to the argument that female directors show greater concerns for eco-friendly activities. Practical implications The findings of this study provide useful and fruitful insights for regulatory parties and policymakers to mandate gender quota in electing boardroom members to ameliorate corporate environmental performance. Originality/value To the best of the authors’ knowledge, most of the prior studies have not yet provided a multi-theoretical analysis of the effect of board gender diversity on environmental performance. Thereby, this study handled this contemporary gap and went beyond the narrow perspectives by diving deep with cross-country analysis.

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Section: Sample and Data Collectionmentioning

confidence: 99%

Boardroom gender diversity and corporate environmental performance: a multi-theoretical perspective in the MENA region

Issa

Zaid

2021

IJAIM

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“…3) The impact of corporate governance on the performance of the IPO has been limited to unique institutional environments, being a legacy of the external mechanism that focuses on the legal and regulatory system of each country, where the institutional environment in which these studies are performed should impact on the stock market (La Porta et al , 1997). Thus, this study’s conceptual contributions include integrating institutional and stakeholder theories in business management (Zaid et al , 2020). More specifically, scholars tend to treat the structure of agency as a universal theory.…”

Section: Introductionmentioning

confidence: 99%

The evolution of corporate governance and agency control: the effectiveness of mechanisms in creating value for companies with IPO on the Brazilian stock exchange

Barros

Santos

Orso

et al. 2021

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Purpose From the agency theory’s point of view, this paper aims to analyze corporate governance mechanisms about the characteristics of the companies quoted in the segments Bovespa Mais and Bovespa Mais 2 and their influence on the creation of value in preparation for the opening of the initial public offering (IPO). Design/methodology/approach A quantitative approach was adopted to achieve the proposed objective using the panel data with fixed effects and secondary data collected on the Comissão de Valores Mobiliários website, using statistical software Stata® 13.0 for statistical tests. The population comprises non-financial companies belonging to the Bovespa Mais and Bovespa Mais Level 2 groups, as the survey sample took into account the period of adhesion of the companies, totaled in 15 companies, which cover the period from 2008 to 2019. The selected variables correspond to the ownership structure’s characteristics, then the board’s composition and the fiscal council as the body responsible for supervising the administrators’ acts. Findings The main results indicate that the number of independent members on the board of directors and the supervisory board’s participation positively influence market performance. However, it also reveals that the concentration of ownership brings fundraising for other companies’ acquisitions, risk reduction concerning information asymmetry between investing powers. Research limitations/implications The main results indicate that the number of independent members on the board of directors and the supervisory board’s participation positively influence market performance. Despite this, it also reveals that the concentration of ownership brings fundraising for other companies’ acquisitions, risk reduction concerning information asymmetry between investing powers. Practical implications This paper advances a comparative institutional perspective to explain capital market choice by firms making an IPO in a foreign market. This paper finds that internal governance characteristics (founder-chief executive officer, executive incentives and board independence) and external network characteristics (prestigious underwriters, degree of venture capitalist syndication and board interlocks) are significant predictors of foreign capital market choice by foreign IPO firms. Social implications While product market choices have been central to strategy formulation for firms in the past, financial markets’ integration makes capital markets an equally crucial strategic decision. This paper advances a comparative institutional perspective to explain capital market choice by firms making an IPO in a foreign market. Originality/value This situation generates value to shareholders and is perceived by the market and, ultimately, generates a direct relationship with the market performance of companies. While product market choices have been central to strategy formulation for firms in the past, financial markets’ integration makes capital markets an equally major strategic decision.

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“…Hasil positif diperoleh Kumar et al (2017), Ramjee dan Gwatidzo (2012), Le dan Ooi (2012), Moyo et al (2013), Singh (2016), Zaid et al (2020). Hasil demikian juga didapatkan oleh Abor dan Biekpe (2009) yang melakukan penelitian di Ghana.…”

Section: Pertumbuhan Penjualanunclassified

Analisis faktor-faktor yang mempengaruhi struktur modal di Bursa Efek Indonesia

Hendi

Susanti

2021

JEM

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Capital structure is a combination of capital and debt so that it is very influential on the company's financial position. To finance operations, companies can use funds from debt or capital. However, the company's management must know whether the company is able to bear the financial risks or costs of these funds to prevent the company's bankruptcy. The purpose of this research is to analyze the factors that influence the capital structure. The independent variables are corporate tax rates, non-debt tax savings, investment opportunity sets, sales growth, and profitability. The sample data tested were obtained from the annual reports of companies listed on the Indonesia Stock Exchange (IDX). The reporting period used in this study was five years and amounted to 2,210. The data obtained were then processed through the SPSS 25 and Eviews 10 systems. The results revealed that corporate tax rates and profitability have a significant negative effect on capital structure. There is a significant positive effect of the investment opportunity set variable and sales growth on the owned capital structure. Another finding is that non-debt tax savings have no significant effect on capital structure.

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Corporate governance practices and capital structure decisions: the moderating effect of gender diversity

Cited by 89 publications

References 129 publications

Boardroom gender diversity and corporate environmental performance: a multi-theoretical perspective in the MENA region

Boardroom gender diversity and corporate environmental performance: a multi-theoretical perspective in the MENA region

The evolution of corporate governance and agency control: the effectiveness of mechanisms in creating value for companies with IPO on the Brazilian stock exchange

Analisis faktor-faktor yang mempengaruhi struktur modal di Bursa Efek Indonesia

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