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The study hypothesized that the impact of board diversity on financial distress (FD) is not direct but rather mediated by the firm’s corporate social responsibility (CSR) activities. Consequently, the purpose of this study is to examine the impact of CSR as a mediator in the board diversity–FD relationship.

The study examined six board diversity dimensions – age, gender, nationality, education and tenure in 81 nonfinancial Pakistan Stock Exchange (PSX)-listed firms from 2010 to 2021. The CSR engagement of the sample firms is evaluated using a multidimensional financial approach and the likelihood of FD is computed using Altman’s Z-score. The system-generalized method of moments estimator is used to meet the study objectives. In addition, several tests are run to determine the robustness of the study’s findings.

Based on the procedure for mediation analysis outlined by Baron and Kenny (1986), the authors found that CSR is significantly inversely associated with the likelihood of FD. Second, board diversity variables age, gender and national diversity were positively associated with CSR. Third, board age, gender and national diversity are significantly inversely related to FD. Finally, it was found that there is partial mediation between board age diversity and FD, whereas full mediation is shown between board age diversity and FD and between board nationality diversity and FD.

This study provides practical insights into PSX’s board diversity for companies, regulators and policymakers.

This research studies the connection between board diversity and FD. In addition, the current study extended the analysis by testing for the first time the mediating role of CSR in the diversity–distress relationship, particularly in the context of an emerging economy.

Do women contribute to performance of companies on which they serve as board of directors? Many prior studies examine this issue, but no consensus is reached on the benefits of women taking on leadership positions. The present study considers this thorny issue from a slightly different perspective. Does the association between gender diversity and business performance vary across sectors and economic cycles?

The sample for this study was derived from the firms included in the S&P Australian Securities Exchange (ASX) 300 Index, and the study period of 2004–2016 allowed authors to consider the effects of different sectors as well as different economic cycles on the relationship between gender diversity of boards and business performance. The authors consider the Australian context, which is somewhat unique from the other Western countries, as quotas on boards of directors are not made mandatory and the corporate governance practices are principle-based rather than rule-based.

Employing panel data models, at the aggregate level, the authors find no evidence of board gender diversity impacting business performance. Consideration of sectoral differences and economic cycles in the empirical analyses yielded additional insights. In particular, gender diversity has a beneficial association with performance for businesses in the services and financial sectors after the changes to corporate governance guidelines relating to diversity in 2010. These economic benefits, however, are not evidenced in the resources sector.

These findings offer support for critical mass and resource dependence theories.

The findings of this study have implications for inclusion and diversity policies of businesses and the society. Specifically, the findings offer support for gender diversity of corporate boards of directors.

This study highlights that women bring their unique skills and experiences to create economic value in sectors where they traditionally have more experience and opportunities.

This study aims to investigate the association between board diversity and systematic risk. The theoretical framework used in this study is based on agency and resource dependency theories.

Using a panel data set of 788 firms listed in the Morgan Stanley Capital International (MSCI) Emerging Markets index from 2015 to 2020, the authors apply Panel-Corrected Standard Error estimation method to test the three proposed hypotheses and the two-stage least squares method is adopted for the endogenous test.

The results suggest that board-specific skills diversity (BSSD) and board independence (BIND) have a negative impact on systematic risk. On the other hand, board gender diversity does not affect systematic risk. The findings reinforce the relevance of board diversity for reducing systematic risk and offer valuable insights for policymakers and investors, suggesting that the presence of directors with specific skills and independent directors could reduce firms’ systematic risk.

The study extends the scope of agency and resource dependency theories by suggesting that the BSSD and BIND reduce agency costs and bring critical resources to the firm’s survival.

The findings support policymakers and managers in reducing systematic risk. In addition, the results demonstrate the importance of policies that encourage board diversity and BIND.

The study demonstrates how companies can reduce systematic risk through board diversity and BIND.

To the best of our knowledge, this is the first study to investigate the association between board diversity and systematic risk only in emerging markets.

This study aims to investigate the impact of extensive board diversity on firm performance from the perspective of resource-based view (RBV) theory in the context of Pakistan.

The analyses are made using a panel random-effects model and generalized method of moment (GMM) across 188 non-financial firms listed in the Pakistan Stock Exchange (PSX) over the period of 2009–2020. The robustness of findings is checked through alternative measurements of the variables and alternative estimation techniques.

The results show that board members' nationality, ethnicity and educational level diversities are significantly positively related to firm performance. In contrast, age and educational background diversities negatively affect firm performance. However, gender and tenure diversities have an insignificant relationship with firm performance.

This study is conducted in the context of Pakistani firms; thus, the findings may not be generalizable to other economies because different economies have different institutional settings and governance structures.

The policy-makers should encourage the inclusion of board members' nationality, ethnicity and educational level diversities having relevant educational backgrounds to improve firms' competitive performance. The suggested structure of the corporate board may improve firm performance by attracting multiple stakeholders and fulfilling their expectations.

The appointment of a director should be based on merit rather than on political connections or personnel relationships to improve social welfare and avoid their negative impact on firm competitive performance.

To the best of the authors' knowledge, this is the first study that investigates the impact of board diversity on firm accounting-based performance and market-based performance in the emerging economy of Pakistan. This study uses RBV theory to provide a unique corporate governance structure based on board diversity, particularly in Pakistan.

This study aims to examine the roles of board gender and cultural diversities in driving social sustainability practices through the moderating effect of board structure policies in the logistics and transportation sector.

The authors conducted fixed-effects regression with 2005–2019 data from Thomson Reuters Eikon.

The results showed that female directors are significant predictors of social sustainability across the four dimensions of human rights, workforce, product responsibility and community development. Additionally, directors with different cultural backgrounds (but not the workforce) are significant determinants of community development, human rights and product responsibility. Furthermore, although board structure policies positively moderate the relationship between board gender diversity and social sustainability, they fail to moderate the relationship between board cultural diversity and social sustainability.

The findings have crucial implications for the logistics and transportation sector's social sustainability and may help the sector align with employees' and society's expectations. The incorporation of board gender and cultural diversities into the research design was a response to calls by the European Union (EU) and the United Nations (UN) to address board configuration and stakeholders' concerns.

The aim of this study is to explore how a practice approach can provide an understanding of board diversity practices. Drawing from Schatzki's practice theory, this study considered how board diversity is practiced from the doings and sayings of directors in Mauritius.

In this study, in-depth interviews with directors in listed companies from different industrial sectors were used to collect data.

The authors' findings indicate that a country's board diversity practices are influenced by the country's unique social, economic and cultural environment. Whilst board diversity practices may appear as the practices that are motivated by compliance, a deeper look at the results reveals that the laws governing board diversity are interpreted very subtly in a way that benefits shareholders' self-interest. A low percentage of female directors on boards and some indications of shareholder-driven practices are also found. Whilst the corporate sector acknowledges the advantages of diversity, there are some practices that they are unwilling to abandon, demonstrating the importance of the teleoaffective structures and normativity in determining what really occurs. Members of boards resolving disagreement further demonstrates the teleoaffective structure.

This research would be of interest to researchers because of the research's novel approach in studying board diversity which could be used by other researchers to experiment with a practice approach in exploring corporate governance phenomena in unique settings.

The findings are of relevance to policymakers and regulators who seek to strengthen corporate governance practices in similar settings.

This research contributes to the literature on board diversity by showing that analysing board diversity through a practice approach enables a more comprehensive understanding of practices. The authors' study confirms that practice theory has the potential to re-orient the way board diversity studies are undertaken.

This paper aims to shed light on an essential role that “female directors” on boards of companies in sub-Saharan Africa play towards corporate financial performance enhancement. The study observes how board gender diversity moderates the relationship between earnings management (EM) and financial performance of firms in sub-Saharan Africa from a dynamic perspective.

The study’s sample comprises 105 companies listed on the respective stock markets of nine sub-Saharan African countries. The data are collected from annual reports over the period 2007–2019, a total of 1,166 firm-year observations. Panel data models are used in the analyses.

The study finds that the performance effect of EM is contingent on board diversity and this finding persists even after controlling for dynamic endogeneity, simultaneity and unobserved time-invariant heterogeneity inherent in the EM and performance relationship.

The findings should be understood within the context that, only available annual reports and audited financial statements that were filed with respective capital markets of the nine surveyed countries are used as source of information.

The current study is unique, in that, it is the first panel multi-cross-country investigation within Africa to introduce gender diversity in the study of the relationship between EM and firm performance. It therefore extends the agency theory by using gender diversity as a moderating variable in the EM–firm performance nexus.

This study aims to explore the factors moderating possibly indirect relationships between gender diversity and its effect on bank performance. The causality of this relationship remains unclear.

The sample consists of all banks (n = 27) operating in Serbia.

The gender diversity-performance relationship is indirect. The gender diversity of executive boards positively impacts bank performance, over a threshold level. This is observed only in banks where gender diversity is extended to more than one level of executive authority.

Gender diversity should be fostered, particularly in small and competitive markets. The gender diversity-performance link is based on gender-related social interactions, which are interdependent and should not be taken into account as isolated factors.

To the knowledge, this is the first study to provide insight into indirect, gender related, moderatory interactions effecting gender diversity – performance link, in banking.

Board diversity positively impacts corporate social responsibility (CSR); however, there is limited evidence on how board diversity affects the reputation of organizations that are involved in CSR. The purpose of this paper is to examine the effect board diversity has on socially responsible firms’ corporate social responsibility reputation (CSRR). The authors specifically examine this relationship because an organization’s corporate reputation may be very different to its CSRR gained through engagement in socially responsible activities.

The authors use the CSR reputation scores for the top 100 most socially responsible global companies provided by the RepTrak Database as a measure of CSRR. Board diversity measures are calculated for gender, ethnicity and education to measure their impact on social reputation. The sample for this study consists of 146 observations for the period 2013–2017.

The authors find a significant and positive relation between having a combination of women and ethnically diverse members on the board and firms’ CSRR. The authors also find a significant positive effect on CSRR when the board is composed of women and educationally diverse members.

Board diversity characteristics continue to impact organizations’ decision-making processes and their involvement in CSR activities as public stakeholders demand greater representation of females and minorities on the board. Because research on board diversity is in its infancy, the authors urge scholars to continue to investigate the impact board diversity has on an organization’s motivation to be socially responsible as well as how it affects their CSRR.

The findings of this study highlight the importance stakeholders place on an organization’s social responsibility reputation and the positive effects of board diversity in managing their CSRR.

The findings provide evidence that the composition of the board can influence a company’s engagement in CSR activities and their CSRR as perceived by its stakeholders.

This study contributes to the CSR literature by introducing the concept of CSRR. To the best of the authors’ knowledge, this study also extends research in the diversity literature by examining the relationship between board diversity variables and an organization’s CSRR. The findings highlight the importance of having a diverse board composed of ethnically and educationally varied individuals and provide evidence of a link between organizations’ involvement in socially responsible activities and their CSRR.

The purpose of this study is to examine the effect of boards’ demographic diversity on firms’ strategic change and the interaction effect of firm performance.

This paper used secondary data derived from publicly listed firms in Kenya during 2002-2010 and analyzed the data using fixed effects regression model to test the effect of board demographic and strategic change, while moderated regression analysis was used to test the moderating effect of firm performance.

The results partially supported board demographic diversity–strategic change hypothesis. In particular, results indicate that age diversity produces less strategic change, while functional diversity is associated with greater levels of strategic change. The moderated regression results do not support our general logic that high firm performance enhances board demographic diversity–strategic change relationship. In effect, the results reveal that at high level of firm performance, board demographic diversity produces less strategic change.

Despite few studies that have examined board demographic diversity and firm performance, this paper introduces strategic change as an outcome variable. This paper also explores the moderating role of firm performance in board demographic diversity–strategic change relationship, and finally, the study uses Kenyan dataset which in itself is unique because most governance and strategy research uses data from developed countries.