Search results
1 – 10 of over 38000Ayman Issa, Ahmad Sahyouni and Miroslav Mateev
This paper aims to examine how the diversity of educational levels within bank boards influences the efficiency and stability of banks operating in the Middle East and North…
Abstract
Purpose
This paper aims to examine how the diversity of educational levels within bank boards influences the efficiency and stability of banks operating in the Middle East and North Africa (MENA) region. Unlike previous studies, this analysis also investigates the role of board gender diversity in moderating the relationship between board educational level diversity and bank efficiency and financial stability in MENA.
Design/methodology/approach
In this study, a sample of 77 banks in the MENA region spanning the years 2011 to 2018 is used. The relationship between the presence of highly educated directors on the board, bank efficiency and stability is assessed using the ordinary least squares method. Additionally, the authors use the Generalized Method of Moments technique to correct endogeneity problem.
Findings
This study establishes a positive association between the presence of directors with advanced educational backgrounds on bank boards and bank efficiency and stability. Furthermore, the inclusion of women on the board strengthens this relationship.
Practical implications
These findings have important implications for policymakers and regulators in the MENA region, suggesting that promoting diversity policies that encourage the participation of highly educated directors on bank boards can contribute to enhanced efficiency and financial stability. Policymakers may also consider implementing quotas or guidelines to improve gender diversity in board appointments, thereby fostering bank performance in the region.
Originality/value
This study stands out for its innovation and distinctiveness, as it delves into the connection between board educational level diversity and bank efficiency in the MENA region. Notably, it surpasses previous research by investigating the moderating role of board gender diversity, thus offering valuable insights into the complex interplay between these two facets of board diversity. This contribution enriches the existing literature by providing novel perspectives on board composition dynamics and its influence on bank efficiency and stability.
Details
Keywords
Petru L. Curşeu, Jörg Raab, Jing Han and Aukje Loenen
This paper sets out to test the mediating role of internal network density and external network range in the relationship between educational diversity (i.e. separation and…
Abstract
Purpose
This paper sets out to test the mediating role of internal network density and external network range in the relationship between educational diversity (i.e. separation and variety) and group effectiveness.
Design/methodology/approach
The authors surveyed 267 employees in 54 organizational groups.
Findings
The study's results show that educational separation has a U‐shaped relationship with the advice network density. Moreover, educational variety moderates the relation of educational separation with external network range in such a way that for groups with high educational variety, the relationship between educational separation and external network range is U‐shaped, while for groups with low educational variety the relationship has an inverted U shape. The results also show that internal network density and external network range mediate the relationship between educational diversity and group effectiveness.
Research limitations/implications
The paper extends the literature on group diversity by simultaneously exploring two forms of educational diversity (separation and variety) as they relate to group network density and external network range. The study is cross‐sectional, restricting causal inferences and future research should further explore the way in which the alignment of educational variety and separation relates to social network structure and group effectiveness.
Practical implications
Understanding the association between educational diversity and group social network structure and the way they relate to group effectiveness enables managers to improve group effectiveness.
Originality/value
The paper is one of the first to explore the curvilinear association between educational diversity and social network structure.
Social implications
By exploring the relation between diversity and social network structures, these results increase understanding of how to address diversity issues at the societal level.
Details
Keywords
Hasan Mukhibad, Doddy Setiawan, Y. Anni Aryani and Falikhatun Falikhatun
Literature on the board diversity of Islamic banks (IB) found limited knowledge of the “deep-level” attribute. This study aims to explain the impact of the board diversity…
Abstract
Purpose
Literature on the board diversity of Islamic banks (IB) found limited knowledge of the “deep-level” attribute. This study aims to explain the impact of the board diversity attributes (education levels, educational backgrounds and the interactions between these two attributes of diversity) on profitability.
Design/methodology/approach
The research sample is 37 fully flagged IBs from five Southeast Asian countries, covering nine years (2010–2019). Data were analyzed using the two-step system generalized moment (2SYS-GMM) method.
Findings
We found that the cognitive conflict between the board of directors (BOD) and the Shariah Supervisory Board (SSB), which has heterogeneity in its education level and educational background, positively affects profitability. These results reinforce the resources dependence theory (RDT) approach that having boards with heterogeneous characteristics is beneficial for IB.
Practical implications
The findings of this study would offer useful information for Islamic banking authorities to revise or formulate rules and guidelines and make a greater effort to implement corporate governance (CG) reform measures by determining educational level and background as a requirement to become a member of a BOD or an SSB.
Originality/value
This paper contributes in three ways: (1) we use the “deep-level” diversity attributes of the BOD and the SSB, (2) it focuses on cognitive conflict in boards by presenting the expertise diversity of the BOD and SSB and (3) we interact with the level of education to evaluate the effect of a cognitive conflict.
Details
Keywords
Ismail Khan, Iftikhar Khan, Ikram Ullah Khan, Shahida Suleman and Shoukat Ali
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.
Abstract
Purpose
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.
Design/methodology/approach
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.
Findings
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.
Research limitations/implications
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.
Practical implications
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.
Social implications
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.
Originality/value
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.
Details
Keywords
Maretno Agus Harjoto, Indrarini Laksmana and Ya wen Yang
This paper aims to examine the relationship between the nationality and educational background diversity of directors serving on corporate boards and the firms’ corporate social…
Abstract
Purpose
This paper aims to examine the relationship between the nationality and educational background diversity of directors serving on corporate boards and the firms’ corporate social performance (CSP).
Design/methodology/approach
This study measures nationality diversity by directors’ national citizenship and measures educational background diversity by countries from which they earned their undergraduate and post undergraduate degrees. It measures firms’ CSP using the MSCI ESG ratings. The study uses both univariate and multivariate analyses to empirically test the hypotheses.
Findings
Using a sample of US firms, the authors find that board nationality diversity and educational background diversity are positively associated with CSP. The findings suggest that improving director nationality diversity and educational background diversity could improve firms’ social performance.
Originality/value
This study shows that the increasing trend of foreign nationals in the US boards could shift the focus of US corporations to be more stakeholder-oriented.
Details
Keywords
Rupjyoti Saha and Santi Gopal Maji
This study aims to examine the impact of board human capital diversity, measured by educational qualification diversity and gender diversity on the financial performance of Indian…
Abstract
Purpose
This study aims to examine the impact of board human capital diversity, measured by educational qualification diversity and gender diversity on the financial performance of Indian firms after controlling corporate governance (CG) and firm-specific variables.
Design/methodology/approach
This study is based on a panel data set of top 100 listed Indian firms for a period of five years. The authors use Blau index and Shannon index to compute qualification diversity. The authors use three-stage least square (3SLS) model to deal with the potential endogeneity issue in the association of human capital diversity variables and other CG variables with firm performance. Further, the authors adopt generalized estimating equation (GEE) model for robustness check.
Findings
The authors find a significant positive impact of board’s educational diversity as well as gender diversity on the financial performance of firms. Additionally, they extricate highly significant positive interaction impact of board’s educational diversity and gender diversity on the financial performance of firms. Further, the results indicate a significant positive impact of board size, board independence, ownership concentration, family ownership and audit committee independence on firm performance, while CEO duality exhibits a significant negative impact on firm performance.
Originality/value
This study fills the existing gap in literature by extending the performance implications of board’s human capital diversity for top listed Indian firms.
Details
Keywords
The purpose of this paper is to investigate why firms engaged in R&D investment and international diversification produce different results in innovation performance.
Abstract
Purpose
The purpose of this paper is to investigate why firms engaged in R&D investment and international diversification produce different results in innovation performance.
Design/methodology/approach
This study is based on a sample of 283 Taiwanese manufacturing firms in the information technology industry.
Findings
The findings showed that in the top management teams (TMTs) with greater tenure diversity there was a stronger relationship between R&D investment and innovation performance. In addition, the TMTs with greater educational diversity enhanced the relationship between international diversification and innovation performance.
Originality/value
This study stresses the vital role of TMT diversity in resource allocation and information processing during the process of innovation. The authors examined the critical role of TMT educational diversity in bringing a wider range of network resources and the role of TMT tenure diversity in the allocation of firm-specific resources. The TMT diversity causes firms to experience different innovation results during the innovation process.
Details
Keywords
Imran Khan, Ismail Khan and Ismail Senturk
This study aims to examine the relationship between board diversity and quality of corporate social responsibility (QCSR) disclosure.
Abstract
Purpose
This study aims to examine the relationship between board diversity and quality of corporate social responsibility (QCSR) disclosure.
Design/methodology/approach
The study estimates seven dimensions of board diversity including age, gender, nation, ethnicity, educational level, educational background and tenure by applying Blau’s index. The relationship between board diversity and QCSR disclosure from the perspective of the resource-based view theory is estimated by using panel random effects regression across 57 firms producing exclusive sustainability reports listed in the Pakistan Stock Exchange from 2010 to 2017. The robustness of the results has also been checked through alternative measurements of the variables under study.
Findings
The regression results reveal that gender and national diversities are the firms’ valuable resources, having the potential to promote QCSR disclosure. However, age diversity was found to be negatively associated to QCSR disclosure. Furthermore, educational level, educational background, ethnicity and tenure were insignificant on QCSR disclosure. The sensitivity analysis supports the findings of the baseline model.
Research limitations/implications
Pakistani firms need to improve the level of board diversity through encouragement of the inclusion of diverse forces of gender and nationality to enhance disclosure on CSR practices.
Originality/value
This is the first study on board diversity and QCSR in the case of Pakistan.
Details
Keywords
Ismail Khan, Ikram Ullah Khan, Mohammad Jasim Uddin, Safeer Ullah Khan and Jahanzeb Marwat
Given the relative importance of the Shari’ah supervisory boards (SSBs) in Islamic banks’ (IBs’) performance, this study aims to examine the impact of SSB diversity on IBs’…
Abstract
Purpose
Given the relative importance of the Shari’ah supervisory boards (SSBs) in Islamic banks’ (IBs’) performance, this study aims to examine the impact of SSB diversity on IBs’ performance from the stakeholders’ perspective in the context of Pakistan.
Design/methodology/approach
Random-effects model and generalized method of moment are used to investigate the impact of SSB diversity on IBs’ performance across a panel data of 22 Islamic banks in Pakistan from 2005 to 2020 inclusive.
Findings
The findings of this study show that SSB size, SSB relevant educational background diversity, bank’s size and bank’s stability have a positive impact on IBs’ performance. In contrast, SSB age, nationality and cross-membership diversities have a negative impact on IBs’ performance. Moreover, SSB gender, tenure and general educational diversities have no significant impact on IBs’ performance.
Research limitations/implications
SSB diversity and IBs practices are different across different jurisdictions. This study is conducted on IBs in Pakistan because of data constraints; thus, the results of this study may not be generalizable to other countries' IBs.
Practical implications
In structuring the SSBs’ framework, the regulatory authorities and policymakers should consider mandating an ideal SSB size and hiring relevant qualified members with low cross-membership to improve IBs' performance. Thus, the structure potentially attracts Muslim stakeholders, enhances their satisfaction and improves IBs' performance.
Social implications
Having diversified members in the SSB, IBs equally benefit both individual and group stakeholders in society. Diversity in SSB members enhances IBs' performance and the social welfare of various stakeholders in society.
Originality/value
To the best of the authors' knowledge, this is the first empirical research that examines comprehensively the impact of SSB structural and demographic diversities on IBs' performance in the context of Pakistan. This paper contributes to the unique Shari’ah governance structure in the context of Pakistan. Additionally, this study may serve to assist IBs’ stakeholders in better comprehending the SSB practices of IBs in Pakistan.
Details
Keywords
anthony lising antonio, Jeffrey F. Milem and Mitchell J. Chang
Racial and ethnic diversity and the attendant challenges and benefits of multiculturalism in society are a worldwide phenomenon. As higher education is often the training ground…
Abstract
Racial and ethnic diversity and the attendant challenges and benefits of multiculturalism in society are a worldwide phenomenon. As higher education is often the training ground for future social and political leaders, as well as the primary institution charged with the study of social problems, the educational benefits, and challenges of diversity in society are particularly relevant to institutions of higher learning. This chapter synthesizes the ongoing empirical research on the educational impact of racially and ethnically diverse university environments in a U.S. context and offers a framework of institutional practices based on that work to help administrators both respond to challenges and better harness-related benefits for all students.
Details