Does the Board Gender Diversity Enhance Firm Performance?

Pidani, Rita R.; Mahmood, Amir; Agbola, Frank W.

doi:10.14707/ajbr.200074

Cited by 8 publications

(7 citation statements)

References 34 publications

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“…Therefore, an entity's performance and value will improve significantly if its managers are subjected to appropriate monitoring and discipline mechanisms (Kılıç, and Kuzey 2016). Besides, Gender diversity on corporate boards of directors' results in increased innovation, creativity, and a broader scope of points of view during the board discussions and decision-making process, and improved efficiency of problem solving, all of which could be valuable to the organization's overall performance (Pidani et al, 2020). The existing literature indicates that gender diversity in the boardroom develops higher levels of innovation and efficient decision -making process on both the personal and operational levels.…”

Section: Introductionmentioning

confidence: 99%

“…While the participation of women work-force has dramatically increased in some domains, owing to the fact that females have progressively climbed the ladder of management in historically maledominated fields. Studies on gender diversity on board of directors' positions indicates that the percentage of females on board seats is still considerably under-represented (Pidani et al, 2020).…”

Section: Introductionmentioning

confidence: 99%

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The Moderating Impact of Board Gender Diversity on the Relationship Between Ownership Structure and Firm Performancean Impirical Study

Ali

El-kalla²

2023

التجارة والتمويل

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This research aims to explore the impact of board gender diversity on the relationship between ownership structure and firm performance. The research employs sample of 26 non-financial firms listed on the S&P EGX 30 ESG index for the period of 2016-2021. The study utilized accounting-based measures (ROA & ROE) and market-based measure (EPS) to evaluate the firms' performance, ownership identity (family, foreign, institutional, managerial) to evaluate the firm's ownership structure as well as leverage, board independence, firm size, board meetings, and board size as control variables. The research findings indicated that ownership structure have significant positive impact on the firm performance (using both accounting based and market-based measures). Moreover, board gender diversity moderates the relationship between ownership structure and firm performance.The study findings have an important implication for regulators they are advised to establish policies aimed at empowering women in firms board of directors and guidelines that steer the ownership and board structure in the ideal manner to enhance firm performance.

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Section: Introductionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

The Moderating Impact of Board Gender Diversity on the Relationship Between Ownership Structure and Firm Performancean Impirical Study

Ali

El-kalla²

2023

التجارة والتمويل

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“…The first and foremost challenge is that, in spite of the increase in board diversity literature in the past decade, there is still a lack of focus on all aspects of board diversity. The analysis showed that although the central theme of our search was board diversity, our results revealed that gender diversity to be the most common among the authors' keywords, indicating that most of the prior studies have focused only on gender as an indicator for board diversity (Carter et al, 2003;Detthamrong et al, 2017;Manita et al, 2020;Pidani et al, 2020;Saha and Chandra Kabra, 2019;Sila et al, 2016). Hence, future studies need to consider other diversity attributes and the interaction between them not only gender diversity but also ethnic, national, religion, age diversity, board tenure, board experience and board interlock.…”

Section: Discussion and Future Research Agendamentioning

confidence: 84%

“…Although the central theme of our search was board diversity, our results showed that gender diversity appeared to be most common among the keywords with 421 occurrences and 94 links to others while board diversity was slightly less encountered (210 occurrences, 86 links). This indicates that most of the prior studies focused only on gender as an indicator for board diversity (Carter et al , 2003; Detthamrong et al , 2017; Manita et al , 2020; Pidani et al , 2020; Saha and Chandra Kabra, 2019; Sila et al , 2016). The reason for this concentration is that the regulatory requirements for board diversity typically focused on gender diversity with limited attention on the other aspects of board diversity and, therefore, the researchers’ attention is mostly the same.…”

Section: Bibliometric Analysismentioning

confidence: 99%

Global trends in board diversity research: a bibliometric view

Khatib

Abdullah

Elamer

et al. 2021

MEDAR

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Purpose This study aims to identify the main research development on board diversity and offers a quantitative synopsis of key themes and contributors, knowledge gaps and provides directions for further work. Design/methodology/approach Using a bibliometric analysis, the authors assess the patterns in global board diversity research based on co-occurrences of researchers’ keywords and publication outputs of 991 articles from the Scopus database. Also, the co-citation network analysis was performed to assess the intellectual structure of board diversity research. Findings According to the keyword analysis, the authors found that researchers focus on the gender diversity of the boardroom while ignoring the cognitive diversity and other aspects of demographic diversity such as educational, ethnic, age, nationality, experience, background and tenure, pointing to the need for further work to consider other diversity attributes and the interaction between them. Additionally, board diversity research related to (but not limited to) payout policy, cash holding, initial public offerings, small–medium enterprises and financial institutions is limited. Originality/value This study provides a comprehensive evaluation of the development of board diversity research (using a large archival database) and identifies the common construct as well as the potential opportunities for future research directions.

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“…Most of the capital markets in the ASEAN region are still developing; thus, it offers a suitable context. In addition, most prior studies of gender diversity in the ASEAN context concentrate more on firm performance in the banking sector (Pidani et al , 2020; Setiyono and Tarazi, 2018; Ramly et al , 2015), with little work on dividends and cash holdings in all industrial sectors. We aim to answer whether women on boards of directors in developing countries affect a firm’s dividends and cash holdings.…”

Section: Introductionmentioning

confidence: 99%

Do women board members affect dividend policy and cash holdings? Evidence from ASEAN emerging economies

Nadia

Hanafi²

2022

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Purpose This study aims to examine the influence of board gender diversity on dividend policy and cash holdings in several emerging economies. This study also investigates the nonlinear impact of women on dividend policy and cash holdings and the differences between countries with one- and two-tier board systems. Design/methodology/approach The sample includes 103 firms listed in the Association of South East Asian Nations (ASEAN) countries of Indonesia, Malaysia, the Philippines and Thailand. The data represent all industries except the financial industry. The sample period is the 10 financial years from 2010 to 2019. This study analyzed unbalanced panel data with fixed effect specifications for baseline model analysis. Findings This study finds robust evidence indicating that women’s presence negatively influences dividends and positively influences cash holdings. The findings in the additional analysis are significant and show a nonlinear relationship, supporting the substitution hypothesis. Practical implications The findings of this paper certainly provided a valuable contribution as a useful empirical guide for policy decision-makers in developing countries, regulators and corporate decision-makers related to board gender diversity. Developed countries have implemented a minimum quota of women boards in the composition of the board of directors. However, there are still few developing countries that implement these policies. Women can reflect or show their values in corporate governance, such as being careful in making decisions and being conservative about risk. These guides policymakers in implementing a minimum quota of women in the composition of the board of directors. Originality/value This study contributes to the debate on the impact of gender diversity on dividends and cash holdings, especially in ASEAN emerging economies because there is a notable empirical gap relative to developed countries. Moreover, this study contributes to the necessary nuanced understanding of the substitution hypothesis in emerging economies. The results also support the explanation of critical mass theory to account for the nonlinear relationship between the number of women board members and dividends and cash holdings.

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Does the Board Gender Diversity Enhance Firm Performance?

Cited by 8 publications

References 34 publications

The Moderating Impact of Board Gender Diversity on the Relationship Between Ownership Structure and Firm Performancean Impirical Study

The Moderating Impact of Board Gender Diversity on the Relationship Between Ownership Structure and Firm Performancean Impirical Study

Global trends in board diversity research: a bibliometric view

Do women board members affect dividend policy and cash holdings? Evidence from ASEAN emerging economies

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