Gender diversity in corporate boards and continuous disclosure: Evidence from Australia

Ahmed, Ammad; Monem, Reza; Delaney, Deborah; Ng, Chew

doi:10.1016/j.jcae.2017.05.004

Cited by 59 publications

(54 citation statements)

References 51 publications

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“…This study supports the previous studies on board capital theory (Ciocirlan and Pettersson, 2012;Ben-Amar et al, 2017;Hollindale et al, 2017;and Hossain et al, 2017) that companies having women as board of directors tend to consider ethical aspects in decision making, especially when it is related to stakeholders of the company. This study also supports the previous studies on critical mass theory (Konrad et al 2008;Torchia et al 2011;Joecks et al 2013 andAhmed, Monem, Delaney andNg., 2017) that companies with three women on board (critical mass) tend to influence decision making that results into ethical decisions which in turn promote more disclosure and transparency. This study proved the Board Capital Theory and Critical Mass Theory on appointing women to improve board performance in reporting climate change disclosure to CDP in the Indian context.…”

Section: Resultssupporting

confidence: 92%

Do Women on Boards Influence Climate Change Disclosures to CDP? – Evidence from Large Indian Companies

Charumathi¹,

Rahman²

2019

AABFJ

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Participation of women on corporate boards is increasing across the globe. Corporate with women directors on their board are more likely to address the emerging strategic issues of climate change, enhance GHG emission disclosure strategy and communicate the actions to the stakeholders. According to Board Capital Theory, the presence of women on boards increases board capital breadth in different dimensions. According to Critical Mass Theory, boards with three or more female directors tend to influence the board's decision-making process which results in more favourable environmental disclosure. Findings of earlier studies reiterate that female executives and directors bring different ethical values and traits to decision-making. This paper studies the effect of women on board on climate change reporting to the Carbon Disclosure Project (CDP) by the large Indian companies. The sample for this study includes S&P BSE 100 indexed companies and the period of the study is 6 years ranging from 2010-11 to 2015-16. This study used secondary data. The CDP data and financial data are taken from Bloomberg Professional Database. Based on the items disclosed by companies for CDP questionnaire, a Carbon Disclosure Index is constructed and used in this study. Using a multiple regression model, it is found that there is a significant positive relationship between the percentage of women directors on boards and climate change-related disclosure to CDP. Using independent 't' tests, it is found that companies having at least three women directors disclose more. Thus, this study supports both board capital theory and critical mass theory.

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Section: Resultssupporting

confidence: 92%

Do Women on Boards Influence Climate Change Disclosures to CDP? – Evidence from Large Indian Companies

Charumathi¹,

Rahman²

2019

AABFJ

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“…According to Kanter (), a critical mass of women consists of 20–40% women. In the context of a corporation's governance, a number of recent studies show that only a critical mass of more than 30% women directors on boards, which translates into an absolute value of about three women on boards, increases firm outcomes (Ahmed, Monem, Delaney, & Ng, ; Dahlerup, ; Dahlerup, ; Joecks et al, ; Liu et al, ; Torchia et al, ). Thus, we posit that only a critical mass of more than 30% women directors on the remuneration committee may have an impact on say‐on‐pay dissent voting.…”

Section: Theoretical Background and Hypotheses Developmentmentioning

confidence: 99%

“…The OLS estimator alone, without performing the logistic transformation to Dissent, is inappropriate, as it predicts probabilities outside the range of zero to one (Greene, 2012 as the total number of women directors on the remuneration committee divided by the remuneration committee's size. In addition, we build on Kanter (1977) and a number of recent studies on women on boards that show that only a critical mass of more than 30% women directors on boards alters firm outcomes (Ahmed et al, 2017;Dahlerup, 1988;Dahlerup, 2006;Joecks et al, 2013;Liu et al, 2014;Torchia et al, 2011). We generate several dummies to study the impact of the critical mass of more than 30% women on the remuneration committee.…”

Section: Modelmentioning

confidence: 99%

Gender diversity and say‐on‐pay: Evidence from UK remuneration committees

Alkalbani¹,

Cuomo

Mallin

2019

Corporate Governance

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Research question/issue We examine whether the presence of women on the remuneration committee has an influence on say‐on‐pay voting. Research findings/insights Based on panel data from the UK's FTSE 350 firms from 2003 to 2015, we find that firms with women on the remuneration committee reduce shareholders' dissent via say‐on‐pay. However, only firms with a critical mass of more than 30% women on this committee are more likely to have less shareholders' dissent via say‐on‐pay (i.e., the presence of 30% women or less on this committee is not sufficient). Theoretical/academic implications Our results provide empirical evidence that the gender diversity of directors on the remuneration committee plays a significant role in shaping shareholders' dissent via say‐on‐pay in the United Kingdom. Our results also provide empirical support for some of the previous studies that draw on critical mass theory that imply that women are more effective monitors when they make up a critical mass of more than 30%. Practitioner/policy implications Our results could provide regulators with evidence in favor of improving women's representation on UK remuneration committees. In addition, our results could help shareholders and nomination committee members understand the importance of having women on UK remuneration committees, as they are more likely to avoid suboptimal pay and align directors' remuneration packages more closely with shareholders' expectations. Finally, our results could also attract the attention of main stakeholders and the media, especially given their increasing attention both to gender diversity and say‐on‐pay.

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“…What is more, compared to men, female executives are perceived as being less overconfident [Huang and Kisgen, 2013]. These psychological factors are the basis of numerous studies analyzing the impact of female board members on many areas of the company's activities, such as performance [Carter et al, 2003;Bohdanowicz, 2011c;Pletzer et al, 2015;Bennouri et al, 2018], earnings management [Arun et al, 2015;Huang et al, 2012], reporting quality [Al-Shaer and Zaman, 2016], willingness to voluntarily disclose information [Ahmed et al, 2017], and risks undertaken by the company [Huang and Kisgen, 2013].…”

Section: Background and Hypothesis Developmentmentioning

confidence: 99%

Board characteristics and earnings forecasts accuracy in IPO prospectuses

Sosnowski

Wawryszuk-Misztal

2019

International Journal of Management and Economics

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Using a sample of 104 companies that conducted initial public offering (IPO) on the Warsaw Stock Exchange between 2006 and 2016, we investigated the relationship between the accuracy and bias of the earnings forecast disclosed in the IPO prospectus and the firm corporate governance attributes. Applying multiple Ordinary Least Squares (OLS) regressions models, we focused on the role of the board size, the percentage of women on the board, the board age diversity measure, and the proportion of shares owned by the members of the board. Generally, our findings show that some characteristics of management and supervisory board improve the usefulness of earnings forecasts’ credibility. Especially, a more diversified board in terms of age and higher management ownership results in more accurate forecasts. This is the first study giving an insight into the role of supervisory and management board characteristics on precision of earnings forecasts revealed in the prospectus by Polish IPO companies.

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Gender diversity in corporate boards and continuous disclosure: Evidence from Australia

Cited by 59 publications

References 51 publications

Do Women on Boards Influence Climate Change Disclosures to CDP? – Evidence from Large Indian Companies

Do Women on Boards Influence Climate Change Disclosures to CDP? – Evidence from Large Indian Companies

Gender diversity and say‐on‐pay: Evidence from UK remuneration committees

Board characteristics and earnings forecasts accuracy in IPO prospectuses

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