Read between the lines: Board gender diversity, family ownership, and risk‐taking in Indian high‐tech firms

Abstract

This article examines the effect of board gender diversity on firm risk‐taking level. Drawing on the contingency framework, we contend that the influence of women executives on firm risk‐taking depends largely on the organizational context of the firm such as the industry in which it operates. To investigate this proposition, we compare the influence of board gender diversity on firm risk‐taking level in Indian high‐tech and in non‐high‐tech sectors. Our findings indicate that female executives operating in high‐tech sectors take more risk than their counterparts female executives who operate in non‐high sector. Interestingly, our analysis also reveals that family ownership negatively moderates the impact of female executives on risk‐taking in high‐tech firms. In additional analysis, we find that female executives exert a positive impact on firm performance only in high‐tech sector. This suggests that the influence of female executives on firm outcomes is not always straightforward.

Leverage in family firms: The moderating role of female directors and board quality

“…Therefore, in family-controlled firms, independent female directors are more likely to mediate leverage decisions; whereas non-independent female directors (family-affiliated) may align financing decisions to those of the family to preserve family ownership as explained by the SEW theory (Berrone, Cruz, & Gómez-Mejía, 2012). This rationale is in line with Saeed, Mukkaram, and Belghitar (2019), who argue that the influence of board gender diversity on corporate outcomes develops according to contextual features, recognizing the importance of distinct institutional pressures (i.e., socio-cultural norms).…”

Board Gender Diversity, Firm Performance and Risk-Taking: The Case of Non-Financial Firms of Pakistan

“…Model (1) Model ( 2 The above results are supported by the existing literature in the theoretical paradigm of gender diverse board and performance of firm (Rene´e B. Adams & Ferreira, 2009;Ahren, 2012;Ararat, 2015;Bøhren & Strøm, 2010;Carter et al, 2010;Coles et al, 2008;Eulerich et al, 2017;Farrell & Hersch, 2005;Gallego-Álvarez et al, 2010;Haslam et al, 2010;Isidro & Sobral, 2015;Menicucci & Paolucci, 2021;Okoye et al, 2021;Saeed et al, 2021;Salim Darmadi, 2011). Hence, the existence of females as director in the meeting room reduces the firm presentation.…”

Mapping women's involvement in family firms: A review based on bibliographic coupling analysis

“…(2016*) examine the determinants of board gender diversity in BRICS 4 economies, and show that board gender diversity is positively related to firm size and inversely related to corporate risk. However, other studies in emerging markets show a negative impact of family ownership on the proportion of female directors, although this relationship is reversed if the firm operates in international markets (Saeed et al., 2017*) or in the high‐tech sector (Saeed et al., 2021*). Watkins‐Fassler and Rodríguez‐Ariza (2019*) provide evidence that family involvement and the presence of women on boards reduce the odds of internationalization, while according to Hernández‐Lara and Gonzales‐Bustos (2020*), the proportion of women on boards has a positive influence on innovation.…”