The Influence of Presence and Position of Women on the Boards of Directors: The Case of NHS Foundation Trusts

Ellwood, Sheila; García‐Lacalle, Javier

doi:10.1007/s10551-014-2206-8

Cited by 72 publications

(53 citation statements)

References 80 publications

Supporting

Mentioning

Contrasting

Unclassified

Order By: Relevance

“…They all have no relationship with bank financial performance. The findings of no influence on the performance of gender diversity are in line with the studies of Ghosh (2017), Ellwood & Garcia-Lacalle (2015) and Marinova et al (2015).…”

Section: Discussionsupporting

confidence: 90%

The impact of gender diversity in the boardroom on banks performances

Farhana¹

2020

J. Keuang. dan Perbank.

View full text Add to dashboard Cite

This research examined the impact of gender diversity in the boardroom on firm performance using banks listed on the Indonesia Stock Exchange (IDX) in the period from 2011 to 2016. Indonesia listed companies have a two-tier board structure that consist of management and supervisory board. In addition, listed companies should establish a committee board that consists of independent directors from outside the company. Thus, we investigate the gender diversity from each boardroom namely management, supervisory, and committee board. Gender diversity is measured by the Blau Index while bank's financial performances are proxied by the Return on Assets (ROA) and Capital Adequacy Ratio (CAR). These two measurements are required by Indonesian Financial Service Authority or Otoritas Jasa Keuangan (OJK). We find that the average proportion of female directors sitting on management, supervisory, and committee board in banks are 16 percent, 9.7 percent, and 14 percent, respectively. Applying panel data analysis with fixed and random effect estimator and also addressing endogeneity issue, we find that there is no significant relationship between gender diversity indexes in each boardroom and both bank's financial performance ROA and CAR. These findings may shed a light for regulator in Indonesia especially OJK whether they consider imposing gender quota in the boardroom. Abstrak Penelitian ini mengkaji dampak keberagaman gender di ruang direksi terhadap kinerja perusahaan pada bank-bank yang terdaftar di Bursa Efek Indonesia (BEI) periode 2011-2016. Perusahaan yang terdaftar di Indonesia memiliki struktur dewan dua tingkat yang terdiri dari dewan pengurus dan pengawas. Selain itu, emiten harus membentuk dewan komite yang terdiri dari direktur independen dari luar perusahaan. Karenanya, kami menyelidiki keragaman gender dari setiap ruang rapat yaitu manajemen, pengawas, dan dewan komite. Keragaman gender diukur dengan Indeks Blau, sedangkan kinerja keuangan bank diproksikan dengan Return on Assets (ROA) dan Capital Adequacy Ratio (CAR). Kedua ukuran ini diwajibkan oleh Otoritas Jasa Keuangan (OJK). Kami menemukan bahwa rata-rata proporsi direksi perempuan yang menduduki jabatan pengurus, pengawas, dan dewan komite di Bank masingmasing adalah 16 percent, 9,7 persen, dan 14 persen. Menerapkan analisis data panel dengan penaksir efek tetap dan acak serta mengatasi masalah endogenitas, kami menemukan bahwa tidak ada hubungan yang signifikan antara indeks keragaman gender di setiap ruang rapat dengan ROA dan CAR kinerja keuangan kedua bank. Temuan ini dapat menjadi titik terang bagi regulator di Indonesia khususnya OJK apakah mempertimbangkan untuk memberlakukan kuota gender di ruang rapat. How to Cite: Farhana, S. (2020). The impact of gender diversity in the boardroom on banks performances.

show abstract

Section: Discussionsupporting

confidence: 90%

The impact of gender diversity in the boardroom on banks performances

Farhana¹

2020

J. Keuang. dan Perbank.

View full text Add to dashboard Cite

show abstract

“…Receiving bonuses for "doing their job" might damage the opinion of citizens and patients about those who manage such key organizations for them, that is, "their public hospital". According to Ellwood and Garcia-Lacalle (2015), the stewardship approach of FT boards enhances their focus on the interests of their key stakeholders. Therefore, there seems to be no need to pay more for better performance scores.…”

Section: Discussionmentioning

confidence: 99%

Stewards in an “Odd” Kingdom: Performance and Remuneration of the Boards of Directors of NHS Foundation Trusts

García‐Lacalle

Royo

Yetano

2018

International Public Management Journal

View full text Add to dashboard Cite

Performance measures and rewards are becoming commonplace in public sector organizations. This paper studies the implementation of performance-related pay (PRP) mechanisms in the boards of directors of the Foundation Trusts (FTs) of the National Health Service (NHS) in England and analyzes whether their remuneration is linked to organizational performance using qualitative and quantitative analyses (structural equation model). FTs operate in a favorable context for implementing PRP to remunerate executive directors. Our results show that many FTs have not implemented PRP and hardly any report having payed bonuses. However, most of them disclose that they carry out some kind of performance appraisal. These results indicate both reluctance to and difficulties in adopting PRP in public sector entities. Results also suggest that executive directors of NHS FTs are stewards in an "odd" kingdom that uses performance ratings to evaluate organizations, blaming directors when ratings are bad, but with no rewards when good performance is achieved. STEWARDS IN AN "ODD" KINGDOM. PERFORMANCE AND REMUNERATION OF THE BOARDS OF DIRECTORS OF NHS FOUNDATION TRUSTS.conducted a review of the literature on the effectiveness and value for money of PRP in the UK public sector. Their findings were mixed, with PRP scheme effectiveness often dependent on scheme design and organizational context. Several authors argue that PRP may not produce the desired results in the public sector (see, e.g., Christensen, Paarlberg, and Perry 2017;Bellé 2015;Bregn 2013;Brewer and Walker 2013;Langbein 2010;Ritz, Brewer, and Neumann 2016;Weibel et al. 2010). Motivation and pay are more likely to be substitutes than complements in the public sector; therefore, PRP may have unintended adverse consequences and more analyses of the relationship between performance and pay are necessary in this sector (Langbein 2010).National Health Service (NHS) Foundation Trusts (FTs) are autonomous public sector organizations within the NHS and provide over half of all NHS hospital, mental health, and ambulance services in England. Monitor, an independent public agency, regulates the FTs and monitors their performance using a defined and specific set of performance measures. FTs provide a suitable environment in which to study the implementation of PRP, for three reasons. First, Monitor backs the implementation of some type of PRP mechanism. Second, the top management teams of the FTs are structured in boards of directors. Third, their performance is assessed with specific performance measures which are periodically disclosed and, thus, easy to track. This paper has two objectives. First, to study the level of implementation of PRP mechanisms to remunerate the boards of directors of the FTs. For this purpose, we review the remuneration sections of the annual reports published by the FTs. Second, to study whether the remuneration of the directors, in particular the executive directors, is linked to the performance of these organizations. For this purpose, we use the structural...

show abstract

“…The presence of women on the boards has recently received increased attention (Ellwood and Garcia-Lacalle, 2015). This is because women are now expected to play a key role in the management of an organization that has been the case before.…”

Section: Women In the Boardmentioning

confidence: 99%

Corporate governance and risk disclosures: An empirical study of listed companies in Kenya

Wachira¹

2019

Afr. J. Bus. Manage.

View full text Add to dashboard Cite

This paper examines the relationships between corporate governance variables and the extent of risk disclosures among listed companies in Kenya. The study aims to empirically examine the relationship between corporate governance variables and risk disclosures in 48 listed non-financial companies in Kenya. Content analysis of annual reports for the period 2010-2016 was used to measure the level of risk disclosures and compute the risk disclosure index for each company studied. The relationships between variables were analysed using panel data analysis. The findings show that the percentage of non-executive directors, ownership dispersion, percentage of foreign ownership, women in boards affected significantly the level of risk disclosures in the studied companies. Additionally, the control variables, firm's size and firm's profitability also significantly affected the level of risk disclosures. It can be concluded that the agency theory and the signalling theory can be used to explain the risk disclosure behaviours of listed firms in Kenya. It is recommended that companies should strengthen their corporate governance mechanisms in order to deal with risks facing them.

show abstract

The Influence of Presence and Position of Women on the Boards of Directors: The Case of NHS Foundation Trusts

Cited by 72 publications

References 80 publications

The impact of gender diversity in the boardroom on banks performances

The impact of gender diversity in the boardroom on banks performances

Stewards in an “Odd” Kingdom: Performance and Remuneration of the Boards of Directors of NHS Foundation Trusts

Corporate governance and risk disclosures: An empirical study of listed companies in Kenya

Contact Info

Product

Resources

About