Examining the impact of gender power and gender diversity within the top management team on firm performance and firm risk

Walton, Richard; Tribbitt, Mark A.

doi:10.1108/ajb-05-2022-0081

Cited by 3 publications

(1 citation statement)

References 67 publications

(105 reference statements)

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“…Consistent with extant literature (Faccio et al. , 2016; Harjoto, 2017; McGuinness et al ., 2017; Walton and Tribbitt, 2023), this study also controls for board characteristics (percentage of independent board, board size, board meeting and CEO-chair of the board), firms' financial conditions (total assets, debt ratio, cash dividend and number of shares outstanding) and external monitoring mechanisms from institutional investors and analysts following. Appendix 2 presents the variables used in the empirical analysis.…”

Section: Methodsmentioning

confidence: 99%

Supply and demand for gender diversity in corporate leadership – the critical mass: evidence from Greece

Harjoto

2023

AJB

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PurposeThis study aims to examine whether a change in the regulatory requirement toward gender quota for corporate leadership significantly affects the demand and therefore, it increases the presence of women directors and women CEOs. Examining the supply-side, the study also examines whether the supply for women directors and women CEOs based on the presence of qualified women who currently hold upper, middle, or lower management positions is positively related with the presence of women directors and women CEOs. Furthermore, based on the critical mass hypothesis, this study examines whether the presence of women CEOs and critical mass for women directors bring significant impacts on firms' financial and environmental, social and corporate governance (ESG) performance during the subsequent period.Design/methodology/approachUsing the multivariate regression analysis, this study empirically examines the impact of the shift in the demand for women directors and CEOs from the enactment of the Greek Law 4403/2016 on gender quota for corporate leadership. This study also examines the impact of the supply for women in corporate leadership, measured by the percentage of women who hold upper, middle, or lower management positions, on the presence of women directors and CEOs. Then, this study examines the impact of women directors and women CEOs on firms' subsequent financial and ESG performance.FindingsBased on a sample of 71 publicly listed Greek firms and 20 Cyprus listed firms as a control group during 2006–2019, the study finds evidence that both the supply-side and the demand-side bring positive effects on greater women participation in corporate boards. However, there is no evidence that the supply and demand affect the presence of women CEOs. The presence of women CEOs has a positive effect on ESG through environmental and social pillars. The study finds evidence to support the critical mass hypothesis that firms with three or more women boards tend to have higher financial and ESG performance.Social implicationsUnderstanding the supply and demand for gender diversity in corporate leadership in countries that are considered as lagging is critical to foster the global objective to level the playing field for women to participate in corporate management leadership as important part the United Nations Sustainable Development Goal (UNSDG) 5.5. The positive impact of women directors on corporate financial and social performance can be achieved, especially when the critical mass is reached. This highlights the importance of greater gender representations in corporate boards and top executive level in order to make a meaningful social change.Originality/valueThis study demonstrates that the supply of women who currently hold corporate management positions has positive influence on the presence of women boards. This study also demonstrates that a national legislation that promotes gender diversity for corporate board has a positive impact on board gender diversity among Greek listed firms. This study also highlights the importance of integrating the critical mass perspective in considering the impact of supply and demand for women in corporate leadership on firms' financial and ESG performance.

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Section: Methodsmentioning

confidence: 99%

Supply and demand for gender diversity in corporate leadership – the critical mass: evidence from Greece

Harjoto

2023

AJB

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Gender Power, the Top Management Team, and Firm Credit Default Risk

Tribbitt,

Walton

2024

JRFM

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This paper considers the impact of the composition of the top management team on the credit default risk of the firm. Finance theory suggests that shareholders prefer higher levels of risk than the risk-averse executives managing the firm. Increasing the influence of female executives may reduce credit default risk, as female executives have been shown to be associated with lower firm risk. Alternatively, as diversity has been shown to improve the quality of group decision-making, a higher but optimal credit default risk may result. This paper uses a matched sample of 6,652 firm-year observations of publicly traded American firms over the period 2010–2020 to investigate the relationship between gender power within the top management team and credit default risk as measured by the Altman Z-score. This paper finds a convex relationship between the Altman Z-score and the influence of female executives. In other words, top management teams where power is shared between female and male executives accept higher levels of credit default risk than teams dominated by just female (or just male) executives. However, this paper also finds that an excessively high credit risk is negatively associated with the influence of female executives.

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Do Gender Diversity and Leadership Style Influence Team Performance and Innovation Among the Employees

Paul Raj,

Kaur,

Pachiyappan

et al. 2024

Advances in Logistics, Operations, and Management Science

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The aim of this chapter is to investigate the influence of gender diversity and leadership style on team performance and innovation of potential teams in the information technology sector. A questionnaire was developed, and a sample of 403 responses were collected from the employees. The analysis of the collected data was done using statistical tests of correlation and logistical regression, in order to understand the relationship and impact of gender diversity and leadership style on team performance and innovation potential of teams. The following findings emerged from the analysis. The findings reveal that there is a positive and significant relationship between gender diversity, leadership style, team performance, and innovation. Also, the result from logistics regression evidence that gender diversity and communication have an impact on team performance, whereas organisational culture and communication have an impact on innovation potential within teams.

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Examining the impact of gender power and gender diversity within the top management team on firm performance and firm risk

Cited by 3 publications

References 67 publications

Supply and demand for gender diversity in corporate leadership – the critical mass: evidence from Greece

Supply and demand for gender diversity in corporate leadership – the critical mass: evidence from Greece

Gender Power, the Top Management Team, and Firm Credit Default Risk

Do Gender Diversity and Leadership Style Influence Team Performance and Innovation Among the Employees

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