Nudging toward diversity in the boardroom: A systematic literature review of board diversity of financial institutions

Abstract

Going beyond the mere gender diversity in the boardroom, this systematic review comprehensively covers the research on board diversity of financial institutions. More specifically, we cover gender diversity, as well as other characteristics of diversity, such as nationality, age, tenure, experience, education, ethnicity, and religion. A systematic literature review was employed using Scopus and Web of Science databases, covering all publications until May 2020, which resulted in 91 studies from 66 top‐ranked journals in accounting, finance, and economic fields. We analyze them based on the journal, methodology, research construct questions, and theoretical perspectives. Our results highlight the substantial knowledge gaps and the inconsistent findings of prior studies on several aspects of the field, suggesting avenues for further studies in terms of research designs, settings, scope, and theories. We argue that there is a need to explore other board diversity attributes rather than focusing on the gender diversity of the boards of financial institutions to achieve sustainable development. Also, more work is outlined on topics related to board diversity of financial firms that receive limited attention from scholars, such as (but not limited to) environmental performance, capital structure, intellectual capital, innovation and earnings quality of financial institutions, as well as the indirect effect of policy settings.

Banks' business strategy and environmental effectiveness: The monitoring role of the board of directors and the managerial incentives

“…First, most of the previous scientific research that has focused on climate‐related action and governance has mainly referred to nonfinancial institutions (Albertini, 2013; Bassetti et al, 2020; Naciti, 2019), whereas this paper takes the banking sector into account. Second, to the best of our knowledge, most of the existing evidence on the banking sector refers to the link between governance variables and FP or CSR (Coulson, 2009; Khatib et al, 2020; Orazalin, 2019). Because the concept of CSR has evolved over time into the more advanced concept of sustainability, our study contributes to emphasizing the environmental dimension and not just the social and economic ones.…”

“…paper takes the banking sector into account. Second, to the best of our knowledge, most of the existing evidence on the banking sector refers to the link between governance variables and FP or CSR (Coulson, 2009;Khatib et al, 2020;Orazalin, 2019). Because the concept of CSR has evolved over time into the more advanced concept of sustainability, our study contributes to emphasizing the environmental dimension and not just the social and economic ones.…”

Mapping of internal audit research in China: A systematic literature review and future research agenda

“…A literature review is one of the most common management research tools (Linnenluecke et al, 2020). The literature review is based on the detailed review of the subject under investigation according to specific rules and procedures (Khatib, Abdullah, Elamer & Abueid, 2021;Petticrew & Roberts, 2008). By reviewing the literature related to IA, it is possible to learn the worst and best practices, identify theoretical gaps in audit practices and guidelines, discover the status of audit performance and expect the challenges that are likely to be faced (Blackmore, 2004).…”

“…Specific and immutable criteria are used in SLR to define and compile the literature, including a list of published studies on known databases or research in new databases largely unused Rothstein & Hopewell, 2009). To avoid the gaps resulting from the implementation of the study for the first time, we focused on the researches in the Scopus and Web of Science database and applied the SLR methodology that was followed by some researchers (Khatib, Abdullah, Elamer & Abueid, 2021;Morioka & de Carvalho, 2016). The study aims to determine how IA can be strengthened in future studies and provide reliable insights on IA research status in China; SLR use is justified.…”

A bibliometric analysis of cash holdings literature: current status, development, and agenda for future research

“…(2020) argue that the structure of boardroom does not exert a significant influence on the level of cash holdings. Apart from the mixed findings, some mechanisms have been overlooked in the literature such as board diversity (Khatib et al 2021 ). The existing research on board diversity and cash holding has concentrated on gender diversity as an indicator of board diversity, neglecting other indicators like ethnic, educational, experience, age, tenure, and others (see, Atif et al 2019 ; Cambrea et al 2019 ).…”