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Open Access
Article
Publication date: 18 July 2019

Fabrizia Sarto, Sara Saggese, Riccardo Viganò and Marianna Mauro

The purpose of this paper is to provide insights into the implications of board human capital heterogeneity for company innovation by focusing on the educational and the…

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Abstract

Purpose

The purpose of this paper is to provide insights into the implications of board human capital heterogeneity for company innovation by focusing on the educational and the functional background of directors. Moreover, it examines the moderating effect of the CEO expertise-overlap within the innovation domain on the relationship between board human capital heterogeneity and firm innovation.

Design/methodology/approach

The hypotheses are tested through a set of ordinary least squares regressions on a unique dataset of 149 Italian high-tech companies observed between 2012 and 2015.

Findings

Findings show that the educational and the functional background heterogeneity of directors increase both the innovation input and output. However, results highlight that these relationships are negatively moderated by the CEO expertise-overlap within the innovation domain.

Practical implications

The paper emphasizes the importance of appointing directors with different and specific educational and functional backgrounds to foster the company innovation.

Originality/value

The paper fills a gap in the literature as it has devoted limited attention to the performance implications of board human capital heterogeneity in the high-tech industry where knowledge and skills are the primary sources of value. Moreover, the paper integrates the research on the CEO-board interface by shedding light on how the CEO expertise within the innovation domain affects the contribution of heterogeneous boards to company innovation.

Details

Management Decision, vol. 58 no. 5
Type: Research Article
ISSN: 0025-1747

Keywords

Open Access
Article
Publication date: 28 October 2019

Rita Goyal, Nada Kakabadse and Andrew Kakabadse

Boards presently are considered the most critical component in improving corporate governance (CG). Board diversity is increasingly being recommended as a tool for enhancing firm…

12239

Abstract

Purpose

Boards presently are considered the most critical component in improving corporate governance (CG). Board diversity is increasingly being recommended as a tool for enhancing firm performance. Academic research and regulatory action regarding board diversity are focussed mainly on gender and ethnic composition of boards. However, the perspective of board members on board diversity and its impact is mostly missing. Moreover, while strategic leadership perspective suggests that a broader set of upper echelon’s characteristics may shape their actions, empirical evidence investigating the impact of less-explored attributes of diversity is almost non-existent. While the research on the input–output relationship between board diversity and firm performance remains equivocal, an intervening relationship between board diversity and board effectiveness needs to be understood. The purpose of this paper is to address all three limitations and explore the subject from board members’ perspective.

Design/methodology/approach

The paper presents the findings of qualitative, exploratory research conducted by interviewing 42 board members of FTSE 350 companies. The data are analysed thematically.

Findings

The findings of the research suggest that board members of FTSE 350 companies consider the diversity of functional experience to be a critical requirement for boards’ role-effectiveness. Functionally diverse boards manage external dependencies more effectively and challenge assumptions of the executive more efficiently, thus improving CG. The findings significantly contribute to the literature on board diversity, as well as to strategic leadership theory and other applicable theories. The research is conducted with a relatively small but elite and difficult to approach set of 42 board members of FTSE 350 companies.

Practical implications

The paper makes a unique and significant contribution to praxis by presenting the perspective of practitioners of CG – board members. The findings may encourage board nomination committees to seek board diversity beyond the gender and ethnic characteristics of directors. The findings may also be relevant for policy formulation, as they indicate that functionally diverse boards have improved effectiveness in a range of board roles.

Social implications

Board diversity is about building a board that accurately reflects the make-up of the population and stakeholders of the society where the company operates. The aim of board diversity is to cultivate a broad range of attributes and perspectives that reflects real-world demographics as boards need to continue to earn their “licence to operate in society” as organisations have a responsibility to multiple constituents and stakeholders, including the community and the wider society within which they exist. Building social capital through diversity has value in the wider context of modern society and achieving social justice.

Originality/value

The paper makes an original and unique contribution to strategic leadership theory by strengthening the argument of the theory. The paper explores beyond widely researched attributes of gender and ethnicity on boards and explores the impact of a less-researched characteristic of directors – their functional experience. Moreover, the paper opens the “black box” of CG – boards, and presents the perspectives of board members. The findings indicate that board members in FTSE 350 boards define diversity more broadly than academics and regulatory agencies often do.

Details

Journal of Capital Markets Studies, vol. 3 no. 2
Type: Research Article
ISSN: 2514-4774

Keywords

Open Access
Article
Publication date: 23 February 2024

Emmadonata Carbone, Donata Mussolino and Riccardo Viganò

This study investigates the relationship between board gender diversity (BGD) and the time to Initial Public Offering (IPO), which stands as an entrepreneurially risky choice…

Abstract

Purpose

This study investigates the relationship between board gender diversity (BGD) and the time to Initial Public Offering (IPO), which stands as an entrepreneurially risky choice, particularly challenging in family firms. We also investigate the moderating role of family ownership dispersion (FOD).

Design/methodology/approach

We draw on an integrated theoretical framework bringing together the upper echelons theory and the socio-emotional wealth (SEW) perspective and on hand-collected data on a sample of Italian family IPOs that occurred in the period 2000–2020. We employ ordinary least squares (OLS) regression and alternative model estimations to test our hypotheses.

Findings

BGD positively affects the time to IPO, thus, it increases the time required to go public. FOD negatively moderates this relationship. Our findings remain robust with different measures for BGD, FOD, and family business definition as well as with different econometric models.

Originality/value

The article develops literature on family firms and IPO and it enriches the academic debate about gender and IPOs in family firms. It adds to studies addressing the determinants of the time to IPO by incorporating gender diversity and the FOD into the discussion. Finally, it contributes to research on women and outcomes in family firms.

Details

Management Decision, vol. 62 no. 13
Type: Research Article
ISSN: 0025-1747

Keywords

Open Access
Article
Publication date: 27 May 2022

Stefania Veltri, Pina Puntillo and Francesca Pierri

The aim of this paper is to provide evidence of the relationship between the governance structure of universities and the universities' knowledge transfer (KT) performance…

Abstract

Purpose

The aim of this paper is to provide evidence of the relationship between the governance structure of universities and the universities' knowledge transfer (KT) performance outcomes measured in terms of university spin-off firms university spin-offs (USOs).

Design/methodology/approach

The universities' board of directors has been analyzed under three profiles: the incidence of internal directors belonging to the STEM (Science, Technology, Engineering and Mathematics) faculties, the incidence of women directors and the incidence of external directors.

Findings

The findings provide evidence of a significant and positive association, for southern Italian state universities, of the presence of university STEM directors and the establishment of university spin-offs (USOs).

Originality/value

The article is original as, to the best of the authors’ knowledge, no study, except for the paper by Meoli et al. (2019), examined the governance of universities in relation to the establishment of academic spin-offs.

Open Access
Article
Publication date: 26 September 2023

Mingxiao Zhao and Indra Abeysekera

Chinese-listed firms with Belt and Road Initiatives (BRI) play a crucial role in advancing the outward investment policy of China. Board diversity can be vital, and intellectual…

Abstract

Purpose

Chinese-listed firms with Belt and Road Initiatives (BRI) play a crucial role in advancing the outward investment policy of China. Board diversity can be vital, and intellectual capital disclosure (ICD) showing future earnings can build investor confidence in these firms. This study examines these two relationships in Chinese-listed firms with BRI projects during a predictable business outlook period (2019, pre-Covid period) and unpredictable business outlook period (2020, Covid period).

Design/methodology/approach

The study used least squares regression that analysed the target population comprising 79 listed Chinese firms with BRI projects in 2019 and 2020. The China Stock Market and Accounting Research (CSMAR) database provided board diversity data. Analysing annual reports using content analysis provided the ICD data, collected by following an established intellectual capital (IC) coding framework in the literature. After collecting board-related data, the study calculated the diversity between boards in firms (diversity of boards – DOB) using cluster analysis. The study estimated the diversity within each board (diversity in boards – DIB) using Blau's Index.

Findings

The findings indicate that in the predictable business outlook environment, DOB positively associates with ICD, and DIB negatively associates with ICD. In the unpredictable business outlook environment, the DIB and DOB interaction negatively associates with ICD, and DOB positively associates with ICD.

Research limitations/implications

The findings apply to Chinese-listed firms with BRI projects and further research is required to generalise findings beyond them. This study used annual reports to collect ICD, but a future study could examine BRI firms' social media and website disclosures. The attributes selected for board diversity dimensions can contribute to bounded findings, and future studies could expand the board diversity attributes included.

Practical implications

The findings provide insights into firms' board composition and structure associated with ICD.

Originality/value

This is one of the first studies providing empirical evidence about board diversity and ICD of Chinese-listed firms with BRI projects.

Details

Journal of Intellectual Capital, vol. 24 no. 7
Type: Research Article
ISSN: 1469-1930

Keywords

Open Access
Article
Publication date: 13 June 2023

Sampson Asiamah, Kingsely Opoku Appiah and Ebenezer Agyemang Badu

The purpose of this paper is to examine whether board characteristics moderate the relationship between capital adequacy regulation and bank risk-taking of universal banks in…

Abstract

Purpose

The purpose of this paper is to examine whether board characteristics moderate the relationship between capital adequacy regulation and bank risk-taking of universal banks in Sub-Saharan Africa (SSA).

Design/methodology/approach

The paper uses 700 bank-year observations of universal banks in SSA between 2009 and 2019. The paper further uses the two-step generalized method of moments as the baseline estimator.

Findings

The paper finds that capital adequacy regulation is positively related to overall bank and liquidity risks. Nonetheless, capital adequacy regulation increases credit risk in the sampled banks. The paper further reports that board characteristics individually and significantly moderate the relationship between capital adequacy regulation and risk-taking.

Practical implications

The findings have implications for regulators of universal banks that board characteristics matter for capital adequacy regulation to impact risk-taking behavior.

Originality/value

The paper extends the existing literature on the effect of board characteristics on the capital adequacy regulations and risk-taking behavior nexus of universal banks.

Details

Asian Journal of Economics and Banking, vol. 8 no. 1
Type: Research Article
ISSN: 2615-9821

Keywords

Open Access
Article
Publication date: 24 December 2021

Nicholas Asare, Francis Aboagye-Otchere and Joseph Mensah Onumah

This study examines the nature of the relationship between board structures (BSs) and intellectual capital (IC) of banks in Africa.

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Abstract

Purpose

This study examines the nature of the relationship between board structures (BSs) and intellectual capital (IC) of banks in Africa.

Design/methodology/approach

Using annual data from financial statements of 366 banks from 26 African countries from 2007 to 2015, the study estimates IC using the value-added intellectual coefficient (VAIC) and BSs using board size, board independence and board gender diversity. The system generalized method of moments and panel-corrected standard error estimation strategies are used to estimate panel regressions.

Findings

There is a significant negative relationship between board independence and intellectual capital. The results also indicate that the IC of banks does not depend on board size and board gender diversity.

Practical implications

The study's findings provide evidence of the extent to which BSs have been instituted to support investments in intellectual capital as a means of improving the performance of banks in Africa.

Originality/value

This study provides some empirical evidence from Africa's banking sector to justify that banks with better IC have boards that are less independent. This study is one of the few studies that employs many countries' data.

Details

Asian Journal of Economics and Banking, vol. 7 no. 1
Type: Research Article
ISSN: 2615-9821

Keywords

Open Access
Article
Publication date: 26 May 2023

Ahmad Abbas and Andi Ayu Frihatni

This paper aims to demonstrate gender diversity in the structure of corporate governance and test the effect of diversity on the firm performance suffering from financial distress.

3527

Abstract

Purpose

This paper aims to demonstrate gender diversity in the structure of corporate governance and test the effect of diversity on the firm performance suffering from financial distress.

Design/methodology/approach

The paper is quantitative using a sample of 467 public firms in Indonesia. Data were analyzed into statistics descriptive and the hypothesis was tested using the test of logistic regression.

Findings

The preliminary results of the paper demonstrate the number of firms employing women and men in the structure of corporate governance of 13% on the commissioner board, 7% on the director board and 5% on the audit committee. Based on the test of effect, this paper further found that firms employing women and men (gender diversity) in the structure of the board of commissioners, tend to suffer from financial distress lower than firms only employing men (non-gender diversity).

Research limitations/implications

This paper is not an effort to make the proportion of voices of women equal to men, however the representation of women at least exists in the structure of corporate governance as part of workforce diversity and inclusivity. In addition, this paper is considered not to use panel data with the purpose of avoiding repetitive data because of the use of a nominal scale in the logistic regression model.

Practical implications

The finding of the paper is addressed to deliver insights into the current conversation on the issue of women's day with the theme of Each for Equal and to firms in positioning women in the structure of boardrooms.

Originality/value

This paper extends the limited scholarly work on the nexus between gender diversity and financial performance. The framework of social identity theory and the tenet of corporate governance are elaborated to disclose the finding that firm shareholders tend to benefit from gender diversity in the structure of the commissioner board.

Details

Journal of Capital Markets Studies, vol. 7 no. 1
Type: Research Article
ISSN: 2514-4774

Keywords

Open Access
Article
Publication date: 28 April 2020

Wakeel Atanda Isola, Bosede Ngozi Adeleye and Aminat Olayinka Olohunlana

This paper aims to focus on the implications of female participation in the board on the management of intellectual capital for improved firm performance, particularly in the…

3129

Abstract

Purpose

This paper aims to focus on the implications of female participation in the board on the management of intellectual capital for improved firm performance, particularly in the Nigerian-banking sector. It uses the resource dependency theory to ascertain the link between female board participation, intellectual capital and performances.

Design/methodology/approach

The paper adopted longitudinal panel analysis to analyze data obtained from the annual reports of selected listed commercial banks in Nigeria. The random effect regression was adopted as the method of analysis. The decision was informed by conducting the Hausman test.

Findings

The results revealed that female board participation has insignificant influence on bank performances, whereas intellectual capital efficiencies positively contribute to bank performances. However, significant influences were exhibited upon the interactions of female board participation and components of intellectual capital efficiency on bank performances.

Research limitations/implications

Because of the focus of the research work, which is centered on the banking sector of the Nigerian economy, the findings of the research may not be sufficiently suitable for other sectors of the country. This, however, leaves the coast for other researchers to extend research on intellectual capital and gender participation to other non-financial sectors and other countries.

Practical implications

The outcome implies that there is a need for increased female participation in the boardroom to harness optimal intellectual capital efficiencies for firm performance. It further confirmed that intellectual capital unlocks the hidden treasure of firms.

Originality/value

The paper identifies and fulfills a niche on the need to extend the frontier of knowledge on intellectual capital and gender equity.

Details

Journal of Economics, Finance and Administrative Science, vol. 25 no. 50
Type: Research Article
ISSN: 2077-1886

Keywords

Open Access
Article
Publication date: 6 February 2024

Francesco Paolone, Matteo Pozzoli, Meghna Chhabra and Assunta Di Vaio

This study aims to investigate the effects of board cultural diversity (BCD) and board gender diversity (BGD) of the board of directors on environmental, social and governance…

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Abstract

Purpose

This study aims to investigate the effects of board cultural diversity (BCD) and board gender diversity (BGD) of the board of directors on environmental, social and governance (ESG) performance in the European banking sector using resource-based view (RBV) theory. In addition, this study analyses the linkages between BCD and BGD and knowledge sharing on the board of directors to improve ESG performance.

Design/methodology/approach

This study selected a sample of European-listed banks covering the period 2021. ESG and diversity variables were collected from Refinitiv Eikon and analysed using the ordinary least squares model. This study was conducted in the European context regulated by Directive 95/2014/EU, which requires sustainability disclosure. The original population was represented by 250 banks; after missing data were excluded, the final sample comprised 96 European-listed banks.

Findings

The findings highlight the positive linkages between BGD, BCD and ESG scores in the European banking sector. In addition, the findings highlight that diversity contributes to knowledge sharing by improving ESG performance in a regulated sector. Nonetheless, the combined effect of BGD and BCD negatively impacts ESG performance.

Originality/value

To the best of the authors’ knowledge, this is the first study to measure and analyse a regulated sector, such as banking, and the relationship between cultural and gender diversity for sharing knowledge under the RBV theory lens in the ESG framework.

Details

Journal of Knowledge Management, vol. 28 no. 11
Type: Research Article
ISSN: 1367-3270

Keywords

1 – 10 of 807