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Article
Publication date: 16 September 2021

Waqas Bin Khidmat, Muhammad Danish Habib, Sadia Awan and Kashif Raza

This study aims to examine the determinants of the female representations on Chinese listed firm’s boards. This study also investigates the effect of gender diversity on…

Abstract

Purpose

This study aims to examine the determinants of the female representations on Chinese listed firm’s boards. This study also investigates the effect of gender diversity on corporate social responsibility activities.

Design/methodology/approach

The Tobit regression model is used because the data is censored and using ordinary least square regression can give spurious results. For robust check, the authors also used Heckman’s (1979) two-stage self-selection model to remove the sample self-selection bias.

Findings

The authors find that the female representations on the corporate board are positively associated with firm age, firm performance, corporate governance, family ownership, institutional ownership and managerial ownership while negatively related to firm size and state ownership. This study also incorporates predictors of the critical mass of women on the Chinese listed firm’s board. The study also tests the female-led hypothesis and concludes that the female representation increases in firms with female chief executive officer (CEO) or female chairpersons. The Chinese listed firms with gender-diverse board are socially responsible.

Research limitations/implications

The importance of diversity in corporate boards has been demonstrated in light of the agency theory and the resource dependence framework. The results contribute to the previous literature by documenting the determinants of female representations on board, robust by alternative measures of gender diversity, firm size, corporate governance and estimation techniques.

Practical implications

The economic significance of gender diversity stirred the firms to increase female representation. The policymakers can understand the reasons for female underrepresentation in Chinese boards and can reform the regulation to enhance governance quality, non-state ownership and risk aversion among the listed firms.

Originality/value

This study contributes to the literature by providing empirical evidence on the key predictor of the world’s largest emerging economy, specifically the study focuses on the firm specific determinants, different governance attributes, ownership structure and firm risk measures. This study also seeks to answer if the presence of a female in the Chairperson or CEO position encourages the firms to hire more female directors or not?

Details

Management Research Review, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2040-8269

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Article
Publication date: 16 June 2021

Asma Yousuf and Husam Aldamen

This study aims to bridge the gap in the scarce and inconclusive literature concerning the impact of gender diversity on earnings quality by positioning this relationship…

Abstract

Purpose

This study aims to bridge the gap in the scarce and inconclusive literature concerning the impact of gender diversity on earnings quality by positioning this relationship within an institutional context. It aims to investigate the moderating effect of different cultural dimensions and accounting values on the relationship between board gender diversity and earnings quality.

Design/methodology/approach

The study uses an international sample from 46 countries (3,092 public firms) for the year 2017. A two-level hierarchical linear regression model is used to test the moderating effect of Hofstede’s cultural dimensions and Gray’s accounting values on diversity and accruals quality relationship.

Findings

The findings suggest a positive relationship between board gender diversity and earnings quality. Results hold valid after controlling for endogeneity effect. More importantly, regarding national culture, results indicate that power distance, individualism, uncertainty avoidance, professionalism, uniformity, secrecy and conservatism moderate the relationship between female directors and accruals quality. Furthermore, different levels of female representation are essential on boards of different societies to use the benefits of gender-diversified boards in enhancing earnings quality.

Research limitations/implications

The study provides empirical evidence on the effectiveness of various worldwide movements toward increasing board gender diversity. Additionally, the results speak directly to gender quota regulatory bodies suggesting that “no size fits all” for gender quota requirement.

Originality/value

The study contributes to the stream of literature concerning gender diversity and earnings quality by investigating this relationship through the lens of national culture and emphasizing the importance of considering institutional factors in examining social interactions.

Details

Managerial Auditing Journal, vol. 36 no. 4
Type: Research Article
ISSN: 0268-6902

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Article
Publication date: 15 July 2021

Moncef Guizani and Ahdi Noomen Ajmi

This study aims to explore the role of board gender diversity in mitigating chief executive officer (CEO) luck. CEOs are “lucky” when they receive stock option grants on…

Abstract

Purpose

This study aims to explore the role of board gender diversity in mitigating chief executive officer (CEO) luck. CEOs are “lucky” when they receive stock option grants on days when the stock price is the lowest in the month of the grant, implying opportunistic timing.

Design/methodology/approach

This study uses a logistic regression analysis and an instrumental-variable analysis. The sample consists of 3,249 firm-year observations from 2010 through 2015.

Findings

The results show that female directors significantly deter the opportunistic timing of option grants. This study finds that gender diversity – as measured by the percentage of women on the board, the percentage of female independent directors and the percentage of female directors on the compensation committee are likely to reduce the odds that CEOs receive opportunistically timed lucky grants. The results are consistent with those in prior research that documents the benefits of board gender diversity.

Practical implications

The research findings are beneficial to policymakers and regulators, as it allows them to assess the importance of diversity on boards in the monitoring of the managers, particularly as it pertains to the design of CEO compensation packages. Furthermore, these findings have implications for Ibero-American countries as they shed light on the importance to undertake measures and reforms to promote board effectiveness by the introduction of gender diversity.

Originality/value

While prior research has examined the effect of board gender diversity on firm performance, the study is the first to investigate the effect of female directors on the opportunistic timing of option grants, using a rigorous empirical framework that explicitly accounts for endogeneity.

Resumen

Propósito

Este estudio busca explorar el papel de la diversidad de género en la junta directiva para mitigar la suerte del CEO. Los directores ejecutivos tienen “suerte” cuando reciben subvenciones de opciones sobre acciones en los días en que el precio de las acciones es el más bajo en el mes de la subvención, lo que implica un momento oportunista.

Diseño/Metodología

Empleamos un análisis de regresión logística, así como un análisis de variables instrumentales (IV). La muestra consta de 3249 observaciones de las firmas desde 2010 hasta 2015.

Hallazgos

Nuestros resultados muestran que las directoras disuaden significativamente el momento oportunista de la concesión de opciones. Descubrimos que la diversidad de género, medida por el porcentaje de mujeres en la junta directiva, el porcentaje de directoras independientes y el porcentaje de directoras en el comité de compensación probablemente reduzcan las probabilidades de que los directores ejecutivos reciban subvenciones afortunadas en el momento oportuno. Nuestros resultados son consistentes con los de investigaciones anteriores que documentan los beneficios de la diversidad de género en la junta.

Implicaciones practices

Los resultados de la investigación son relevantes para los responsables de la formulación de políticas y los reguladores, ya que les permite evaluar la importancia de la diversidad en los directorios en el seguimiento de los gerentes, particularmente en lo que respecta al diseño de paquetes de compensación de los directores ejecutivos. Además, estos hallazgos tienen implicaciones para los países iberoamericanos, ya que arrojan luz sobre la importancia de emprender medidas y reformas para promover la efectividad de los directorios mediante la introducción de la diversidad de género.

Originalidad

Si bien investigaciones anteriores han examinado el efecto de la diversidad de género de la junta en el desempeño de la empresa, nuestro estudio es el primero en investigar el efecto de las directoras en el momento oportunista de las concesiones de opciones, utilizando un marco empírico riguroso que explica explícitamente la endogeneidad.

Resumo

Objetivo

Este estudo busca explorar o papel da diversidade de gênero no conselho de administração para mitigar o destino do CEO. Os CEOs têm “sorte” de receber opções de compra de ações nos dias em que o preço das ações é mais baixo no mês de concessão, o que é um momento oportunista.

Desenho/Metodologia

Foi utilizada uma análise de regressão logística, bem como uma análise de variáveis instrumentais (IV). A amostra é composta por 3.249 observações de empresas de 2010 a 2015.

Conclusões

Nossos resultados mostram que as diretoras inibem significativamente o momento oportunista de outorga de opções. Descobrimos que a diversidade de gênero, medida pela porcentagem de mulheres no conselho de administração, a porcentagem de conselheiros independentes e a porcentagem de diretoras no comitê de remuneração, provavelmente reduz as chances de CEOs receberem subsídios da sorte em tempo hábil. Nossos resultados são consistentes com pesquisas anteriores que documentam os benefícios da diversidade de gênero no conselho.

Implicações práticas

Os resultados da pesquisa são relevantes para os formuladores de políticas e reguladores, pois permitem que avaliem a importância da diversidade nos conselhos na gestão de gerentes, especialmente no que se refere ao desenho de políticas. Além disso, esses achados têm implicações para os países ibero-americanos, uma vez que lançam luz sobre a importância de empreender medidas e reformas para promover a eficácia dos conselhos por meio da introdução da diversidade de gênero.

Originalidade

embora a evidência científica prévia tenha examinado o efeito da diversidade de gênero do conselho no desempenho da empresa, nosso estudo é o primeiro a investigar o efeito das diretoras no momento oportunista de concessões de opções, usando uma estrutura empírica rigorosa que explica explicitamente a endogeneidade.

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Book part
Publication date: 1 May 2012

Emmanuel Zenou, Isabelle Allemand and Bénédicte Brullebaut

Representation of women on boards is getting more and more attention these recent years (Hillman, Shropshire, & Cannella, 2007; Nielsen & Huse, 2010), all the more as…

Abstract

Representation of women on boards is getting more and more attention these recent years (Hillman, Shropshire, & Cannella, 2007; Nielsen & Huse, 2010), all the more as recent influence by the legislator accelerates the pace of change. Indeed, in France, a new law adopted in January 2011 stated that the proportion of female directors should not be lower than 40% in all major companies.

Most previous research focused on the impact of the presence of women in boards on performance, but there are few studies on female directors' networks. In order to help to better understand the ties at the origin of these networks, we study several characteristics and network ties of female directors of French companies belonging to the SBF 120 index and we compare them with male characteristics. We test the specificity of four types of board of directors' networks: attendance at the same elite educational institutions, use of business networks, civil servants' networks, and interlocking directorates.

Our findings suggest that female directors' networks tend to find their origin in business networks more than men. Conversely, male directors have more board interlocking and are more often graduated from elite schools than women. These results show that female directors' networks have specific origins in comparison with men's ones. The exploration of this specificity could be an asset to better understand the role and influence of female directors' networks in governance.

Details

Research in Finance
Type: Book
ISBN: 978-1-78052-752-9

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Article
Publication date: 6 April 2021

Maryam Safari

Drawing from social capital theory, this study aims to investigate the manifested critical barriers in deriving and implementing gender diversity policies, paying…

Abstract

Purpose

Drawing from social capital theory, this study aims to investigate the manifested critical barriers in deriving and implementing gender diversity policies, paying particular attention to the role multiple directorships play in shaping the directors’ behavior and the dynamic of the board of directors. The study comprehends social capital as a multi-dimensional concept and uses combinations of interconnected internal, external, expressive and instrumental networks.

Design/methodology/approach

The study uses a mixed-method approach through which the quantitative approach is supplemented by a qualitative research method to comprehensively examine the development and impact of female directors’ networks in Australia. To do so, a large data set consisting of 2,527 observations of all Australian firms and data emerged from semi-structured interviews with female directors were brought together and analyzed.

Findings

The findings reveal an inverted U-shaped relationship between the size of women’s directorate networks and firm performance. The study additionally explicates the key moderating factors influencing the optimal number of multiple directorships. The key power-based and psychological well-being-related benefits of the inter- and intra-organizational interactions and “open” directorate networks for individual directors are further discussed. The findings also elucidate the status quo vis-à-vis labyrinth metaphor and excessive numbers of directorships.

Social implications

The study should be of interest to those interested in effective gender diversity management. The findings would assist in enabling tangible outcomes for women through advanced processes and systematic investment in and institutionalization of well-structured, equitable opportunities provided via gender-responsive policies dedicated to the education and training of future female directors.

Originality/value

Calling for social dialogues and discussions on non-financial factors, this study adds to the scarce literature on influential factors related to diversity management policies and practices on the board of directors.

Details

Meditari Accountancy Research, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2049-372X

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Article
Publication date: 21 December 2020

Alireza Vafaei, Darren Henry, Kamran Ahmed and Mohammad Alipour

This study aims to examine the impact of board female participation on Australian firms’ innovation.

Abstract

Purpose

This study aims to examine the impact of board female participation on Australian firms’ innovation.

Design/methodology/approach

Data are from the 500 largest Australian Securities Exchange (ASX)-listed companies for 2004–2015. Measures of innovation concern input (research and development expenditure and intangible assets) and output (patents registered) indicators.

Findings

A positive and significant association exists between female director participation and firm innovation activity. This association exists across industry classifications independent of technological importance and is particularly driven by materials and health-care sectors. Findings support calls for more board diversity in line with board female membership positively influencing innovative investment and development activities.

Practical implications

The economic efficacy of the latest revisions to the ASX Corporate Governance Council principles and recommendations (“ASX CGC revisions”) is supported. Diverse boards are a strong source of innovation. Regulators and corporations can use the findings to establish principles and practices that promote female board diversity.

Originality/value

This study is the first to examine the link between board diversity and corporate innovation in Australia where there is under-representation of women on corporate boards and in key management positions. Also lacking are formal legislative or governance policy mandates on board gender diversity. Beyond confirming a positive association between board diversity and levels of corporate innovation, this paper provides new findings that this relationship is driven by women who are non-executive (independent) directors, independent of the underlying technology intensity of firms and moderated by the nature of firm-level profitability and growth opportunities.

Details

International Journal of Accounting & Information Management, vol. 29 no. 2
Type: Research Article
ISSN: 1834-7649

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Article
Publication date: 25 November 2020

Glenn Boyle, Sanghyun Hong and Michael Foley

This study aims to examine the impact of December 2012, New Zealand (NZ) stock exchange operator listing rule change that introduced compulsory disclosure about gender…

Abstract

Purpose

This study aims to examine the impact of December 2012, New Zealand (NZ) stock exchange operator listing rule change that introduced compulsory disclosure about gender diversity on NZ boards.

Design/methodology/approach

A quasi-natural experiment setting with a clearly identifiable exogenous event.

Findings

The rate of growth in female-held directorships increased significantly after the introduction of the new rule, resulting in, by 2016, the average female board representation being more than double what it had been in 2012. However, this paper finds no relationship between this response and company performance.

Research limitations/implications

This study cannot attribute causality to the observed jump in female directorships following the 2012 listing rule change due to the absence of a control group of firms not subject to this change.

Practical implications

The results are consistent with an efficient director appointment process in NZ.

Originality/value

Low-key regulatory changes can have a significant impact on company behaviour.

Details

Pacific Accounting Review, vol. 32 no. 4
Type: Research Article
ISSN: 0114-0582

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Article
Publication date: 13 August 2020

Romilda Mazzotta and Olga Ferraro

This study aims to examine the impact of an increasing board diversity on the performance of Italian listed banks for the period 2008–2014, taking into account the effects…

Abstract

Purpose

This study aims to examine the impact of an increasing board diversity on the performance of Italian listed banks for the period 2008–2014, taking into account the effects of the implementation of gender quota laws in Italy. The study also investigates the effects of this potential relationship during the crisis that Italy had to cope with since 2011, as well as the potential impact of female directors and their roles on bank boards.

Design/methodology/approach

To verify this relationship, the study uses a panel sample of 22 listed banks and applies fixed effects with the Driscoll-Kraay error. Considering the shareholders’ perspective, bank performance (BP) is measured by return on average equity. The robustness of results is verified through return on average assets, Tobin’s Q (a market measure from investors/stakeholders’ perspective) and an alternate estimation model, i.e. GMM.

Findings

The findings highlight a positive relationship between the performance accounting measures and gender diversity, a non-neutral impact of the presence of female directors on boards and a significant and negative effect on market measures.

Research limitations/implications

The results of the study, as far as accounting measures are concerned, support managerial and legislative efforts toward more gender-balanced boards and the appointment of female directors in executive or independent roles. As per market measures, the results suggest that the presence of women on boards should be considered advantageous in terms of value, so that the market can finally appreciate diverse bank boards.

Originality/value

First, previous studies did not provide exhaustive results to document the proposed relationship and did not examine this relationship during a financial crisis. Second, the role of female directors on boards is also taken into account. Third, the study highlighted that BP is a multi-dimensional construct, with accounting and market metrics being its distinct dimensions.

Details

Corporate Governance: The International Journal of Business in Society, vol. 20 no. 6
Type: Research Article
ISSN: 1472-0701

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Article
Publication date: 20 July 2020

M. Camino Ramon-Llorens, Emma Garcia-Meca and María Consuelo Pucheta-Martínez

This paper aims to analyze the role of female directors on CSR disclosure. It assumes the existence of faultlines when studying gender diversity and classifies female

Abstract

Purpose

This paper aims to analyze the role of female directors on CSR disclosure. It assumes the existence of faultlines when studying gender diversity and classifies female directors into three categories: industry experts, advisors and community leaders. It also examines the influence of the power of female directors as a moderator on the association between female director categories and CSR disclosure.

Design/methodology/approach

The paper bases on a dynamic generalized method of moments panel estimator which allows controlling for the unobservable heterogeneity and endogeneity and reduces the estimation bias.

Findings

Results confirm the double-sided nature of gender diversity, noting different behavior among female directors according to their experience and backgrounds. Moreover, the dominating owner position of female directors can balance and moderate the effect of female directors appointed for their technical knowledge or political and social ties. The results also confirm the necessity to not consider all women directors as a homogeneous group and explore the influence and interrelations of female faultlines on CSR disclosure.

Practical implications

The paper highlights the need to consider the specific skills, expertise, and connections of female board members when analyzing the effect of board composition, and supports the view that firms should emphasize the unique human and social capital of directors to understand how boards impact on firm strategies. Specifically, the authors support the recommendations of the European Commission (2011) regarding the need to increase skills and expertise when selecting new non-executive female board members.

Social implications

At a time when most governments are introducing active policies that require firms to nominate women to boards, the understanding of the consequences of women’s presence on boards and the interrelations between female power and the diverse categories of female directors is timely and important.

Originality/value

To the best of the authors’ knowledge, this is the first paper that provides empirical evidence to the scarcely studied area of the human and social capital of female directors’ roles in CSR disclosure, providing an alternative view of the role of women in corporate board effectiveness.

Details

Sustainability Accounting, Management and Policy Journal, vol. 12 no. 1
Type: Research Article
ISSN: 2040-8021

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Article
Publication date: 20 March 2020

Emrah Arioglu

This study aims to investigate whether female directors have an effect on company financial performance in a patriarchal emerging country that has a collectivistic culture…

Abstract

Purpose

This study aims to investigate whether female directors have an effect on company financial performance in a patriarchal emerging country that has a collectivistic culture with a substantial gender equality gap and is characterized with a paternalistic management culture. In addition, it aims to investigate whether the affiliations of female directors matter performance-wise in a setting where the majority of the companies are ultimately controlled by large business groups including families.

Design/methodology/approach

The current study uses a unique hand-collected data set that covers all non-financial public companies quoted at the Borsa Istanbul between the years 2009 and 2017. To investigate the relationships between the presence and ratio of female directors and company financial performance, the current study uses the pooled ordinary least squares method, as well as the firm-fixed effects method to overcome potential omitted variables problems and various generalized method of moments methods to overcome potential reverse causality problems.

Findings

The findings of the current study demonstrate that the presence and percentage of female directors both have a positive effect on company financial performance in a cultural setting where the opposite might be expected. They also present evidence suggesting that the effect becomes larger as the level of the independence of female directors becomes greater.

Originality/value

The current study demonstrates that the presence of female directors on boards has a positive effect on company financial performance, even in a cultural setting that is very different from those of countries where the majority of previous studies on female directors are conducted on. In addition, it demonstrates how company financial performance varies with the level of the affiliation of female directors.

Details

Gender in Management: An International Journal , vol. 35 no. 2
Type: Research Article
ISSN: 1754-2413

Keywords

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