Does Board Diversity Decrease Corporate Fraud? International Evidence from Family vs. Non-family Firms

Dimungu‐Hewage, Dilrukshi; Poletti‐Hughes, Jannine

doi:10.1561/114.00000039

Cited by 7 publications

(6 citation statements)

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“…A growing body of literature pays attention to the role of top executives' personal traits and experiences in corporate outcomes (e.g. Bai and Yu, 2022;Bernile, Bhagwat and Rau, 2017;Dimungu-Hewage and Poletti-Hughes, 2022;Law and Mills, 2017). Our paper adds to this strand of literature by investigating whether CEOs' marital status affects abnormal insider trading returns and the propensity to trade opportunistically.…”

Section: Discussionmentioning

confidence: 97%

CEO Marital Status and Insider Trading

Hegde

Liao

et al. 2022

British J of Management

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We investigate the association between chief executive officers' (CEOs') marital status and their tendency to profit from insider trading. We argue that marriage can constrain CEOs' opportunistic behaviour, which could increase litigation risk, and show that married CEOs earn lower insider trading returns compared to unmarried CEOs. Insider trades can be identified as either routine or opportunistic. We also find that married CEOs are less likely to engage in opportunistic trades, and they earn lower insider trading returns in firms with weaker corporate governance and higher information asymmetry. Our empirical results remain robust after accounting for several endogeneity tests.

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Section: Discussionmentioning

confidence: 97%

CEO Marital Status and Insider Trading

Hegde

Liao

et al. 2022

British J of Management

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“…, 2019). It also improves the key corporate governance mechanisms (Dimungu-Hewage and Poletti-Hughes, 2023; Guizani and Abdalkrim, 2023) by introducing new perspectives, values and diverse knowledge (Post and Byron, 2015), by enhancing the quality of brainstorming (Erhardt et al. , 2003) and by fostering collaboration among board members (Bettinelli et al.…”

Section: Theoretical Background and Hypotheses Developmentmentioning

confidence: 99%

Timing the transition: gender diversity’s role in family IPOs

Carbone,

Mussolino,

Viganò

2024

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PurposeThis study investigates the relationship between board gender diversity (BGD) and the time to Initial Public Offering (IPO), which stands as an entrepreneurially risky choice, particularly challenging in family firms. We also investigate the moderating role of family ownership dispersion (FOD).Design/methodology/approachWe draw on an integrated theoretical framework bringing together the upper echelons theory and the socio-emotional wealth (SEW) perspective and on hand-collected data on a sample of Italian family IPOs that occurred in the period 2000–2020. We employ ordinary least squares (OLS) regression and alternative model estimations to test our hypotheses.FindingsBGD positively affects the time to IPO, thus, it increases the time required to go public. FOD negatively moderates this relationship. Our findings remain robust with different measures for BGD, FOD, and family business definition as well as with different econometric models.Originality/valueThe article develops literature on family firms and IPO and it enriches the academic debate about gender and IPOs in family firms. It adds to studies addressing the determinants of the time to IPO by incorporating gender diversity and the FOD into the discussion. Finally, it contributes to research on women and outcomes in family firms.

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“…Casu et al (2022) find that certain aspects of diversity are associated with greater board monitoring in the presence of bank misconduct. Likewise, Dimungu-Hewage and Poletti-Hughes (2022) show that board diversity is beneficial for family firms in avoiding fraud. De Amicis and Falconieri (2022) show that managerial diversity affects corporate communication strategies in times of crisis.…”

Section: Benefits Of Refreshmentmentioning

confidence: 99%

Board Refreshment: Like a Breath of Fresh Air

Dah

Frye

2023

British J of Management

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Using a sample of firms listed on the S&P1500 index for the period 2006–2021, we develop a comprehensive board refreshment index to examine why firms refresh as well as to consider the effects of such changes on the monitoring efforts of the board. We measure refreshment as a within‐board measure of the changes in diversity based on gender, nationality, age, interlocks, classification, education level and financial expertise. We find that longer‐tenured boards with older directors are more likely to refresh. Better‐governed firms and more diverse boards are also more likely to seek refreshment. We find a positive relation between board refreshment and CEO turnover‐performance sensitivity, pay‐for‐performance sensitivity and pay‐for‐risk sensitivity. Thus, our findings suggest that board refreshment promotes more effective board monitoring as well as efficient managerial contracting. Analysing board refreshment addresses an important shortcoming in the board diversity literature by directly studying the dynamics of boards.

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Does Board Diversity Decrease Corporate Fraud? International Evidence from Family vs. Non-family Firms

Cited by 7 publications

References 0 publications

CEO Marital Status and Insider Trading

CEO Marital Status and Insider Trading

Timing the transition: gender diversity’s role in family IPOs

Board Refreshment: Like a Breath of Fresh Air

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