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Open Access
Article
Publication date: 22 November 2023

Maria Cristina Zaccone and Alessia Argiolas

This paper aims to present a comprehensive theoretical framework that seeks to explore the impact of cultural, legal and social factors within the external environment on the…

Abstract

Purpose

This paper aims to present a comprehensive theoretical framework that seeks to explore the impact of cultural, legal and social factors within the external environment on the relationship between women on corporate boards and firm performance. By investigating these boundary conditions, the paper aims to shed light on how these pressures influence the aforementioned relationship.

Design/methodology/approach

To build the sample of companies, the authors selected companies listed on the stock exchanges of countries that represent a diverse range of institutional contexts. These contexts encompass countries with individualistic cultures, collectivist cultures, environments with mandatory gender quotas, environments without gender quotas, contexts with substantial progress toward gender equality and contexts with limited progress in achieving gender equality. To test the hypotheses, the authors used linear regression analysis as a primary analytical approach. Furthermore, they used the propensity score matching technique to address potential issues of reverse causality and unobserved heterogeneity.

Findings

The findings indicate that the positive influence of a critical mass of women on corporate boards on firm performance is contingent upon the institutional context. Specifically, the authors observed that this relationship is strengthened in institutional contexts characterized by an individualistic culture, whereas it is not as pronounced in collectivist cultural contexts. Furthermore, this research provides compelling evidence that the presence of a critical mass of women on boards leads to enhanced firm performance in institutional settings where gender quotas are not binding, as opposed to settings where such quotas are enforced. Lastly, the results demonstrate that the presence of a critical mass of women on boards is associated with improved firm performance in institutional settings characterized by low progress in achieving gender equality. However, the authors did not observe the same effect in institutional contexts that have made significant strides toward gender equality.

Originality/value

This research offers a unique perspective by investigating the relationship between women’s presence on corporate boards and firm performance across different institutional contexts. In this investigation, the authors recognize that gender diversity on corporate boards is not a one-size-fits-all solution and that its effects can be shaped by the unique institutional contexts in which companies operate.

Details

Corporate Governance: The International Journal of Business in Society, vol. 24 no. 8
Type: Research Article
ISSN: 1472-0701

Keywords

Article
Publication date: 13 March 2024

Mpinda Freddy Mvita and Elda Du Toit

This paper aims to explore the effect of female’s presence in corporate governance structures to reduce agency conflicts, using a quantile regression approach.

Abstract

Purpose

This paper aims to explore the effect of female’s presence in corporate governance structures to reduce agency conflicts, using a quantile regression approach.

Design/methodology/approach

The research investigates the relationship between company performance and boardroom gender diversity using quantile regression methods. The study uses annual data of 111 companies listed on the Johannesburg Stock Exchange from 2010 to 2020.

Findings

The study reveals that women on the board impact firm return on assets and enterprise value, varying across performance distribution. This contrasts fixed effect findings but aligns with two-stage least squares. However, quantile regression indicates that female executives and independent non-executive directors have notably negative impacts in high and low-performing companies, highlighting non-uniformity in the board gender diversity effect compared with previous assumptions.

Practical implications

The empirical findings suggest that companies with no women directors on the board are generally more likely to experience a decrease in performance and enterprise value relative to companies with women directors on the board. As recommended through the King Code of Corporate Governance, it is thus valuable to companies to ensure gender diversity on the board of directors.

Originality/value

The research confirms through rigorous statistical analyses that corporate governance policies, principles and guidelines should include gender diversity as a requirement for a board of directors.

Details

Corporate Governance: The International Journal of Business in Society, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1472-0701

Keywords

Article
Publication date: 16 October 2023

Xiaojing Zheng and Xiaoxian Wang

This study aims to examine the effect of board gender diversity on corporate litigation in China’s listed firms. The key questions this study addresses are: what are the effect of…

Abstract

Purpose

This study aims to examine the effect of board gender diversity on corporate litigation in China’s listed firms. The key questions this study addresses are: what are the effect of board gender diversity on corporate litigation in terms of both the frequency and severity of consequence, is there any heterogeneous effects of the relationships across firm performance?

Design/methodology/approach

A sample consists of 25,668 firm-year observations from over 3,340 firms is examined using logistic regression analysis and negative binomial regression analysis. The authors also use event study method and ordinary least square (OLS) regression to explore female directors’ effects on reducing the negative consequences of litigation. The logistic regression and OLS regression are reestimated with interaction terms when examining the firm performance heterogeneity.

Findings

The authors document that firms with greater female representation on their boards experience fewer and less severe corporate litigations. Moreover, in high-performing firms, board gender diversity plays a more potent role in reducing the frequency and consequences of corporate litigation than low-performing firms.

Originality/value

This study is among the first to examine the relationship between board gender diversity and the comprehensive corporate litigations under Chinese context. It sheds new light on China’s boardroom dynamics, offering valuable empirical implication to Chinese corporate policymakers on the role of female directors.

Details

Gender in Management: An International Journal , vol. 39 no. 3
Type: Research Article
ISSN: 1754-2413

Keywords

Content available
Article
Publication date: 13 April 2023

Frank Lefley and Václav Janeček

The corporate communications literature recently focused on corporate board gender diversity, specifically looking at two central aspects: gender quotas and equitable target…

Abstract

Purpose

The corporate communications literature recently focused on corporate board gender diversity, specifically looking at two central aspects: gender quotas and equitable target percentages for women on corporate boards. This paper extends the debate by focusing on board gender diversity and critical mass theory.

Design/methodology/approach

The paper gives a conceptual viewpoint on the issues raised in the literature on board gender diversity through a critical mass theory lens.

Findings

Following the 2022 European Union (EU) directive, all EU member states will have to attain a 40% women representation on large corporate boards to achieve board gender diversity and what has been termed a “critical mass”. However, the literature indicates that gender diversity benefits may not be achieved if a critical mass is not composed of independent women directors who create a voice that produces a collective action. The authors highlight why a critical mass may not be achieved. The inconsistency in prior research linking corporate board gender diversity to economic performance may result from the critical mass of women directors not reflecting an independent collective action. However, as gender-diverse boards evolve, the authors argue that women will not just be seen as female directors but will be accepted on equal terms with their male counterparts and have an equal voice; gender will no longer be an issue and critical mass theory may then become irrelevant.

Practical implications

From a corporate communications perspective, this study will focus the minds of human resources (HR) professionals on the importance of the composition of women on corporate boards if the HR professionals wish to obtain the full potential benefits of board gender diversity. Theoretically, this study highlights the importance of critical mass and collective action when researching the economic benefits of corporate board gender diversity. Investment analysts may wish to look more closely at the structure of corporate boards and not just the numbers.

Originality/value

This paper gives a conceptual viewpoint on the critical mass theory and corporate board gender diversity, identifying that it is not just the numbers that are important but also the issue of minority independence and collective action, and this is, therefore, unique in this respect. Future research should identify if a critical mass (not just numbers) of women on corporate boards has been achieved. Only then that the linkage, based on critical mass theory, between board gender diversity and corporate performance/profitability can be made. Knowing whether board sizes are being increased to accommodate the added female directors would be also interesting, or will the new female directors replace existing male directors? However, the most important research question, once gender diversity has been achieved, could be: Is critical mass theory relevant with respect to board gender diversity?

Details

Corporate Communications: An International Journal, vol. 29 no. 2
Type: Research Article
ISSN: 1356-3289

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

Article
Publication date: 25 December 2023

Frank Lefley, Helena Vychová and Gabriela Trnková

This paper aims to seek the perceptions of potential future corporate managers and directors on the issues raised in the literature, especially recent articles in the corporate…

Abstract

Purpose

This paper aims to seek the perceptions of potential future corporate managers and directors on the issues raised in the literature, especially recent articles in the corporate communications literature, concerning corporate board gender quotas. It focusses on the Czech Republic, where research on board gender diversity is sparse.

Design/methodology/approach

The study is part of much more comprehensive research into board gender diversity. It adopts a questionnaire approach, with this paper focussing on 13 research statements. A Likert Scale of 1–4 (Strongly Agree; Agree; Disagree; Strongly Disagree) was applied to the perceived views expressed. The questionnaires were completed by university students at a public university in the Czech Republic during March–April 2023. A pilot questionnaire was conducted in February 2023, resulting in minor changes being made. The data is analysed using SPSS and MedCalc® statistical software.

Findings

There is overwhelming opposition to quotas, even from women. The opinions expressed by the respondents to this research, in many respects, support the literature, but there is unmistakable evidence of gender bias. Regarding the positive female benefits of quotas, male respondents disagreed; regarding the negative issues of quotas, male respondents agreed more than their female counterparts.

Practical implications

The research findings have important implications for how women recruited through quotas may be received onto corporate boards – what challenges will they likely face? Some current female candidates for directorship, who would have been selected on merit and perceived as such by their male counterparts, may now be hesitant to apply for such positions if they are seen as being appointed due to quotas. Therefore, the selection procedure must continue to be based on merit and seen as such.

Originality/value

One of the important aspects of the paper is that it focusses on a country that has, until recently, resisted pressures to implement mandatory corporate board gender quotas; in this respect, it has a corpus of originality and value. The Czech Republic and other European countries will also be affected by the recent EU law on gender balance or corporate boards. The paper also highlights the perceptions of potential future directors on various issues of board gender quotas.

Details

Corporate Communications: An International Journal, vol. 29 no. 2
Type: Research Article
ISSN: 1356-3289

Keywords

Article
Publication date: 28 March 2024

Sneh Bhardwaj, Damian Morgan and Natalie Elms

Situated in the context of India, where women’s representation on corporate boards remains low, this study aims to explore whether and how tokenism impacts the behaviours of…

Abstract

Purpose

Situated in the context of India, where women’s representation on corporate boards remains low, this study aims to explore whether and how tokenism impacts the behaviours of female directors.

Design/methodology/approach

The boardroom experiences and perceptions of 14 women directors are explored through semi-structured interviews and analysed using an inductive and interpretive process. Also, to get a counter perspective and avoid the social desirability bias from the women participants’ responses, 16 men directors are interviewed.

Findings

The study finds that, as gender minorities, women directors' visibility on boards can create performance pressures on these women. To counter gender-based prejudices, women directors consciously alter their behaviours and project both male and female traits consistent with the director role. By doing so, women directors overcome tokenistic stereotypes and are accepted as part of the director in-group, irrespective of their numeric representation on the board.

Practical implications

The research has implications for governments attempting to increase women’s board presence through affirmative actions and for firms aiming to improve the gender diversity of their board composition.

Originality/value

These findings present an alternative perspective on women directors’ board behaviour by exploring the applicability of Western trends on tokenism and critical mass in the context of India, adding to the vast body of literature concerned with minorities on corporate boards.

Details

Gender in Management: An International Journal , vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1754-2413

Keywords

Article
Publication date: 13 April 2023

Vidisha Gunesh Ramlugun and Lesley Stainbank

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…

Abstract

Purpose

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.

Design/methodology/approach

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

Findings

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.

Research limitations/implications

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.

Practical implications

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

Originality/value

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.

Details

Journal of Accounting in Emerging Economies, vol. 14 no. 2
Type: Research Article
ISSN: 2042-1168

Keywords

Article
Publication date: 7 June 2023

Hafiz Muhammad Muien, Sabariah Nordin and Bazeet Olayemi Badru

As the benefit of gender diversity continues to receive significant attention, a holistic investigation of its effect on corporate financial distress (CFD) is lacking. Therefore…

Abstract

Purpose

As the benefit of gender diversity continues to receive significant attention, a holistic investigation of its effect on corporate financial distress (CFD) is lacking. Therefore, this study examines the effects of board gender diversity, measured in different forms, such as the presence and proportion of female directors, family-affiliated female directors and the chief executive officer (CEO) gender, on CFD in Pakistan. The study also investigates the interacting effects of family-controlled (20 and 50% family-owned) companies on the association between board gender diversity and CFD.

Design/methodology/approach

The study applied the pooled cross-sectional logistic regression model to examine the effect of board gender diversity (presence and proportion of female directors, family-affiliated female directors and CEO gender) on CFD through a sample of 285 non-financial companies in Pakistan over the period of 2006–2017.

Findings

The results reveal that gender diversity on boards is significantly and negatively associated with CFD in Pakistan. In addition, when family ownership is 50% or more, the interacting effect of family control is found to be significant, while gender effects remain negative. The results suggest that female directors contribute to the long-term viability of companies, especially family-owned companies. Female directors are also found to be more prevalent in family-owned companies compared to their non-family counterparts.

Research limitations/implications

The findings imply that female directors may efficiently manage and control all functions necessary to guarantee the company's long-term prosperity. Similarly, gender effects can outweigh the detrimental impact of family control when female directors are in reasonable numbers and of high quality in the boardroom.

Practical implications

The practical relevance of the findings is that female directors play a significant role on the corporate board. Thus, it is a wakeup call for Pakistani companies to recognize the critical role and uniqueness of women on the corporate ladder. Family companies can also galvanize on the uniqueness of women to improve their governance structure.

Originality/value

This study adds to the literature on the benefits of gender diversity in family and non-family-owned companies. Specifically, this study applied multiple measures of gender diversity and family control in a single study. In addition, the study was conducted in a country that is ranked as the second worst country in the Global Gender Gap Index 2022, implying that investigating this type of research would go a long way towards changing the minds of corporate executives and regulators about the critical role that women can play in the economy.

Details

Journal of Family Business Management, vol. 14 no. 1
Type: Research Article
ISSN: 2043-6238

Keywords

Article
Publication date: 18 March 2024

Maha Shehadeh, Hashem Alshurafat and Omar Arabiat

This study aims to analyze the impact of digital transformation on firm performance within the banking sector, specifically focusing on the Amman Stock Exchange (ASE)-listed banks…

Abstract

Purpose

This study aims to analyze the impact of digital transformation on firm performance within the banking sector, specifically focusing on the Amman Stock Exchange (ASE)-listed banks from 2015 to 2022. Additionally, it explores the influence of gender dynamics on the implementation and outcomes of these digital transformation initiatives.

Design/methodology/approach

The study adopts a robust empirical approach, using manual content analysis of annual reports from ASE-listed banks. The Digital Transformation Disclosure Index (DTDI) is used to assess the extent and nature of digital transformation initiatives within these banks. The methodology is designed to provide a comprehensive evaluation of the correlation between digital transformation efforts, firm performance and gender dynamics.

Findings

The research reveals that digital transformation initiatives have a significant positive impact on the performance of ASE-listed banks. It also uncovers nuanced insights into the role of gender dynamics, indicating that gender diversity within firms influences the adoption and success of digital transformation strategies in complex ways.

Research limitations/implications

The findings of this study contribute to the understanding of digital transformation in the banking sector, offering empirical evidence on its benefits for firm performance. Additionally, the study illuminates the intricate role of gender dynamics in digital transformation, providing a new perspective on organizational diversity within the context of technological change.

Originality/value

This research pioneers in academically linking digital transformation and gender dynamics within the banking sector, addressing a notable gap and introducing a fresh academic perspective. Practically, it equips banking executives and policymakers with actionable insights for gender-inclusive digital strategies, crucial for enhanced firm performance. Methodologically, the study sets a benchmark in research innovation, using the DTDI to offer a replicable model for future investigations in this evolving field.

Details

Competitiveness Review: An International Business Journal , vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1059-5422

Keywords

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