Female Directors and Firm Performance: Evidence from UK Listed Firms

Pasaribu, Pananda

doi:10.22146/gamaijb.15619

Cited by 25 publications

(29 citation statements)

References 40 publications

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“…The results are in line with those reported previously (e.g., [2,12]), which also showed that a significant positive association between gender diversity on the boards of directors and firm performance is not robust. However, the aforementioned studies did document a significant relationship for subsamples of their population: companies with weak corporate governance [2] and small companies assumed to be poorly governed [12] and to have more flexibility in assigning female directors on the boards. Following the same rationale, we investigate the validity of our hypothesis across types of companies (profit/loss-companies, premium/standard tier listed firms, financial/nonfinancial companies).…”

Section: Resultssupporting

confidence: 92%

“…For instance, Vafaei et al [31] following Adams and Ferreira's [2] strategy of addressing methodological weaknesses in previous studies, document a significant positive impact of gender-diverse boards of directors on financial performance (proxied by ROA, ROE, Tobin's Q and the ratio of cash flow from operations to total assets) based on a sample of Australian top 500 companies listed during 2005-2011. Pasaribu [12], after controlling for endogeniety, provided for contrary results on a sample of non-financial companies listed on London Stock Exchange during 2004-2012. However, according to a size-based analysis, Pasaribu [12] found that the presence of female directors on boards is positively correlated with financial performance for small companies but not for large ones, which was explained, in a similar manner to Adams and Ferreira [2], based on over-monitoring problems experienced by large companies with strong governance after appointing female directors but also based on the flexibility small companies have on appointing female directors.…”

Section: Literature Reviewmentioning

confidence: 92%

“…Pasaribu [12], after controlling for endogeniety, provided for contrary results on a sample of non-financial companies listed on London Stock Exchange during 2004-2012. However, according to a size-based analysis, Pasaribu [12] found that the presence of female directors on boards is positively correlated with financial performance for small companies but not for large ones, which was explained, in a similar manner to Adams and Ferreira [2], based on over-monitoring problems experienced by large companies with strong governance after appointing female directors but also based on the flexibility small companies have on appointing female directors. Green & Homroy [32] document a positive impact of gender-diversity of the boards on financial performance, after addressing endogeneity issues, for a sample of EuroTop 100 firms for the period 2004-2015, although the economic impact of performance gains is deemed modest.…”

Section: Literature Reviewmentioning

confidence: 92%

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Women on Boards and Financial Performance: Evidence from a European Emerging Market

Ionașcu

Săcărin

et al. 2018

Sustainability

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This paper examines the association between gender diversity on corporate boards and firm performance for a European emerging market, which lags behind in terms of both corporate governance quality and social cohesion indicators. In a sample of Romanian companies listed on BSE (Bucharest Stock Exchange) during 2012-2016, this study confirms previous concerns related to the endogeneity of gender diversity variables in firm performance regression analysis and shows that, on average, diversity has no significant impact on firm-performance. However, based on a sub-sample analysis, results show a robust association in the case of profit-firms and those listed on the Standard tier. As losses can be construed as a distortion factor and Standard tier companies are the smallest and less well governed on the market, the results could be taken to suggest that Romanian listed companies do benefit from increasing gender diversity in the boardrooms, which could complement their rather poor corporate governance practices. Overall, the paper concludes that, in the context of an emerging market, policies aimed at increasing gender diversity in the boards appear to be financially viable and even beneficial for the major part of listed companies, balancing successfully the social cohesion and economic components of sustainable development.

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Section: Resultssupporting

confidence: 92%

Section: Literature Reviewmentioning

confidence: 92%

Section: Literature Reviewmentioning

confidence: 92%

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Women on Boards and Financial Performance: Evidence from a European Emerging Market

Ionașcu

Săcărin

et al. 2018

Sustainability

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“…Study by Indarti and Langerberg (2004) on the contrary found no relation between gender and business success. Meanwhile study by Prijadi and Desiana (2017) indicates in the case of Indonesia, SMEs run by female entrepreneur will have higher sales but not higher profit and in the case of UK small listed firm, female directors has positive effect on firm performance (Pasaribu, 2017).…”

Section: Resultsmentioning

confidence: 99%

Determinants of Micro and Small Enterprise Food Industry Market Expansion in Indonesia

Rifin

2019

ijbe

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One of the indicators that might upgrade micro and small enterprise is the ability to expand their market target outside their location or district. The objective of this article was to analyze the determinants of market expansion for small and medium enterprise especially in the food industry in Indonesia. Market expansion is defined as selling products or services outside the district where the enterprise is located. Secondary data were utilized in the research by using the Micro and Small Enterprise Survey conducted by Statistics Indonesia in 2014 with the data of 21,380 firms. Two analysis were conducted, firstly using the logit analysis in order to differentiate between enterprises selling their products inside and outside the district. The second analysis used Tobit analysis of which the dependent variable is the share of product sold outside the district. Independent variables used in both equations are similar. The results indicated that higher education level, number of labor, value of production, number of enterprise with external finance, number of enterprise located in Java and male-owned firms resulted in higher probability of selling their product outside the district. Moreover, the same variables will also increase the share of product sold outside the district. From the two equations, it can be concluded that the government policy must be addressed in two aspects in order to upgrade the small and medium enterprises, the first is increasing the scale of the enterprises and secondly, fostering financial inclusion for these enterprises.

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“…As well as having a positive impact on financial performance, studies found a direct positive link between female board directors and dividend performance, proposing that more companies need to seek out a greater number of female directors (Post & Byron, 2015;Pucheta-Martinez & Bel-Oms, 2016;Chen, Leung & Goergen, 2017). Not all studies on the relationship have been positive and a number of studies have found either no evidence of improved financial performance or in fact have reported a potential negative relationship with the presence of women on boards (Rose, 2007;Adams & Ferreira, 2009;Pasaribu, 2017).…”

Section: Literature History and Empirical Evidencementioning

confidence: 99%

Bold Vision: Gender Diversity Stuck in Transition

Evans¹

2018

EBR

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Canada is often put forward as an example of forward thinking on inclusiveness and gender balance. However, for the last 30 years, while gender diversity progress has been made within Canadian government agencies, commissions and boards (ABCs), the private sector continues to lag behind, stuck trying to break through the barrier of 18-22% females on Boards. This occurs while mounting empirical evidence clearly indicates that it is not just the right thing to do, it is the smart thing to do. This paper looks at where progressive government change has generated results and potential avenues necessary to make gender equality a reality within both the government and private sector beyond 2018. The author reviews the methods used by the Canadian government to achieve gender parity, ending with some insights on how the private sector could implement gender parity without the use of quotas.

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Female Directors and Firm Performance: Evidence from UK Listed Firms

Cited by 25 publications

References 40 publications

Women on Boards and Financial Performance: Evidence from a European Emerging Market

Women on Boards and Financial Performance: Evidence from a European Emerging Market

Determinants of Micro and Small Enterprise Food Industry Market Expansion in Indonesia

Bold Vision: Gender Diversity Stuck in Transition

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