The Impact of Board Diversity, CEO Characteristics, and Board Committees on Financial Performance in the Case of Romanian Companies

Mihail, Bogdan Aurelian; Dumitrescu, Dalina; Micu, Carmen Daniela; Lobda, Adriana

doi:10.3390/jrfm15010007

Cited by 13 publications

(18 citation statements)

References 40 publications

(48 reference statements)

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“…A fierce debate has emerged in corporate governance literature on the effect of board diversity on firm performance. Proponents suggest greater demographic diversity can enhance a firm's competitive advantage in a number of ways such as through cost savings (Aurelian, Dumitrescu, Micu and Lobda, 2022;Modozie & Amahalu, 2022). Also, a more diversified board of directors can provide a source of inspiration and unity with the firm's workforce (Habash & Abuzarou, 2022).…”

mentioning

confidence: 99%

Effect of Board Diversity on Financial Performance of Quoted Hospitality Firms in Nigeria

Amahalu¹,

Okoye²,

Chukwubuikem³

et al. 2023

IJRCMS

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This study examined the effect of board diversity on financial performance of quoted hospitality firms in Nigeria for a period of nineteen years (19) years spanning from 2003 to 2021. Specifically, this study ascertained the effect of gender diversity, age diversity and board independence diversity on cash flow return on investment. The panel data sets used in this study were obtained from the annual reports and accounts and Nigerian Exchange (NGX) Group fact books for the study period. Ex-post facto research design was employed. Inferential statistics using Pearson Coefficient Correlation and Panel Least Square Regression analysis were applied to test the hypotheses of the study. The findings showed that Gender diversity has a significant and positive effect on cash flow return on investment (β1 = 0.141799; P-value = 0.0000 < 0.05); Age diversity has a significant and positive effect on cash flow return on investment (β2 = 0.018494; P-value = 0.0000 < 0.05); Board independence has a significant and positive effect on cash flow return on investment (β3 = 0.289258; P-value = 0.0000 < 0.05) at 5% level of significance respectively. The study recommended inter alia that Company boards should have an independent majority since an independent majority on the board is more likely to consider the best interests of shareowners first. In times of high environmental uncertainty, outside directors can link the firm with scarce resources, help in effective strategy development and execution which can ultimately improve firm performance

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confidence: 99%

Effect of Board Diversity on Financial Performance of Quoted Hospitality Firms in Nigeria

Amahalu¹,

Okoye²,

Chukwubuikem³

et al. 2023

IJRCMS

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“…These independent members may make significant policy recommendations aimed at strengthening corporate governance procedures. They also enhance board monitoring efficiency and reduce the corresponding agency issue (Mihail et al, 2021). The positive effects of having independent members on boards are compatible with agency theory and the firm's resource-based orientation (Raimo, Vitolla, & Rubino, 2021).…”

Section: Hypothesis Testing and Discussionsupporting

confidence: 65%

“…The Board of directors is positively related to corporate profitability. Similarly, board independence is beneficial to profitability (Mihail, Dumitrescu, Micu, & Lobda, 2021); (Farhan, Tabash, Almaqtari, & Yahya, 2020).…”

Section: Board Independence and Firm Profitabilitymentioning

confidence: 99%

Impact of Boards Gender Diversity on Firm Profitability: Evidence from Food and Beverages Sector of Indonesia

Proceedings of the International Conference on Industrial Engineering and Operations Management

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This study investigates if gender diversity on boards effectively drives firm profitability. For this purpose, this study uses two periods, before and during COVID 19 -Pandemic, to analyze how gender diversity existence strengthens or weakens the impact of the Board of Commissioners (BOC), Board of Directors (BOD), Independent Commissioner (IC) and Directors (ID) on firm profitability. This study also analyzed how BOC, BOD, IC, and ID influence firm profitability. The sample of this study consists of 40 Food and Beverage companies listed on the Indonesian Capital Market from the period 2011 -to 2021. The research models were estimated using panel data regression. The result shows that before Covid 19 -Pandemic, BOC and BOD had a significant negative impact on firm profitability. In contrast, IC and ID had a positive and significant impact on firm profitability. The existence of women in BOC, BOD, and as independent commissioners do not moderate the impact of BOC, BOD, and IC on firm profitability, while female directors had a positive role in moderating the impact of ID on firm profitability. During the Pandemic, BOD did not influence firm profitability, while BOC and ID had a negative influence, and IC positively influenced firm profitability. Interestingly during a pandemic, the existence of women in BOC and BOD negatively moderates the influence of the BOC and BOD on firm profitability. On the contrary, the women's role as independent commissioners and director positively moderates the influence of independent commissioners and directors on firm profitability.

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“…The number of foreigner directors in a firm usually represents the foreign shareholders in the firm (Kao et al., 2019). The increase in number of foreigners would bring in varied perspectives and opinions in terms of corporate decisions and professional experiences and can these individuals represent different notions in terms of the controlling role that a board plays specifically if they belong to the country with stronger shareholder rights (Mihail et al., 2021). Foreign directors may not be able to monitor the decisions and performance of the firm effectively due to different customs and geographic distance.…”

Section: Literature Reviewmentioning

confidence: 99%

Board gender diversity and the financial performance of Pakistani non‐financial firms: A fuzzy‐set QCA approach

Naz

Lutfullah

Arshad

et al. 2023

J Corp Accounting Finance

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According to the upper echelon's theory, the decision-making process in regard to competitive strategies by the top management has an enduring impact on firm performance (Hambrick & Mason, 1984). Moreover, the attributes of the individuals in top management may also affect the decision-making process. The purpose of this research is to analyze the board gender diversity impact on the financial performance of the non-financial companies of Pakistan. Qualitative comparative analysis (QCA) is employed which is premised on Boolean algebra that sets foundation for the theoretical framework of complexity theory. The sample comprises of 74 non-financial firms listed on the KSE-100 Index. The results are modelled as a component of the intermediate solutions with board-level variables and gender diversity for the outcome variable (i.e., EVA and Tobin's Q). From board level variables, the impact of gender diversity and foreign directors is identified among most of the combinations whereas leverage is the prominent variable within the firm level variables, the boards of which tend to be small. The results showed a heterogeneous nature of response as board gender diversity exhibited stronger association in some configurations and in some cases it exhibited weaker association similar to that of (Pandey et al., 2022).Originality: This study is an attempt to explore the of board gender diversity role in a firm's performance using board level and firm level variables. Therefore, this work adds to the prior research by adding a complementarity-based methodology for analyzing board gender diversity.

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The Impact of Board Diversity, CEO Characteristics, and Board Committees on Financial Performance in the Case of Romanian Companies

Cited by 13 publications

References 40 publications

Effect of Board Diversity on Financial Performance of Quoted Hospitality Firms in Nigeria

Effect of Board Diversity on Financial Performance of Quoted Hospitality Firms in Nigeria

Impact of Boards Gender Diversity on Firm Profitability: Evidence from Food and Beverages Sector of Indonesia

Board gender diversity and the financial performance of Pakistani non‐financial firms: A fuzzy‐set QCA approach

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