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Article
Publication date: 30 August 2022

Tuong-Minh Ly-Le

Gender diversity, or in-diversity, has long been a problem in the tech industry. Until now, significant gaps and barriers still exist. This paper examines how recruitment…

Abstract

Purpose

Gender diversity, or in-diversity, has long been a problem in the tech industry. Until now, significant gaps and barriers still exist. This paper examines how recruitment practices within the technology sector can contribute to gender inequality and how recruitment practices can be improved to support a gender-diverse organization.

Design/methodology/approach

This paper adopted library research and case study as papers' methodologies.

Findings

There are many benefits of gender diversity, including better performance, better financial returns, and lower volatility. However, most tech companies do not make diversity a priority, and usually display conscious or unconscious gender biases. Some of the recommendations to overcome this diversity issue are to make diversity a goal, offer unconscious bias training, and expand recruitment efforts.

Practical implications

The findings imply that companies not pursuing a diverse workforce are in danger of experiencing lags in innovation and could be left behind. The findings also show that a technology company can increase the diversity of the company's workforce by applying practices that have already proven to be successful.

Originality/value

This paper confirms that gender parity is not just a social mission nor is gender parity solely a public relations initiative to improve a company's image. Technology companies must be continually innovating to thrive in companies' highly competitive and rapidly changing industry.

Details

Journal of Management Development, vol. 41 no. 6
Type: Research Article
ISSN: 0262-1711

Keywords

Article
Publication date: 30 June 2022

Jagvinder Singh, Shubham Singhania and Deepti Aggrawal

This study aims to evaluate the impact of gender diversity on corporate boards on firms’ financial performance in the context of the Indian information and technology (IT…

Abstract

Purpose

This study aims to evaluate the impact of gender diversity on corporate boards on firms’ financial performance in the context of the Indian information and technology (IT) sector. The Companies Act 2013 brought forth mandatory provisions for the appointment of women directors for a certain class of companies. This study explores the case of board gender diversity in the Indian IT sector’s unique setting.

Design/methodology/approach

The study uses a fixed effect panel data regression model to achieve its objectives. Two widely used diversity measures, Blau Index and Shannon Index, have been used to enhance the robustness of the results.

Findings

The results of the study indicate an insignificant relationship between gender diversity and firms’ financial performance. Even the diversity indices portray insignificant results confirming the outcomes of the study. The study indicates that IT sector firms have not been able to leverage the benefits of board gender diversity.

Research limitations/implications

The results of the study have important policy implications for the government, regulatory bodies and corporates. The outcomes point out that the benefits that could have accrued based on the diversity aspect could not be harnessed, as the women’s representation on corporate boards is extremely low. Policymakers and government shall focus on devising stringent laws so that better representation of women directors can be used for the interests of the firms.

Originality/value

The study is an attempt to fill the gap in the extant literature which has a scarce number of studies conducted in the unique setting of the IT sector (both in developed and developing economies). To the best of the authors’ knowledge, this is the first study on the influence of board gender diversity in the IT sector of a developing economy, backed by socio-cultural reasons.

Details

Society and Business Review, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1746-5680

Keywords

Article
Publication date: 20 May 2022

Calvin W.H. Cheong

The purpose of this study is to investigate the gender and ethnic diversity–performance relationship in Malaysia from two angles: (1) the impact of political regimes; and…

Abstract

Purpose

The purpose of this study is to investigate the gender and ethnic diversity–performance relationship in Malaysia from two angles: (1) the impact of political regimes; and (2) a possible nonlinear relationship – at the boardroom and employee level.

Design/methodology/approach

This study uses a sample of firms listed in Bursa Malaysia during a sample period that spans two political regimes. Two-stage least squares controlling for firm-specific effects, corporate governance and lagged variables to account for endogeneity issues is used to test the relationship.

Findings

Findings show that the political alignment of the ruling government affects the significance of the gender/ethnic diversity–performance relationship. The relationship between board gender/ethnic diversity and firm performance is curvilinear while the relationship between employee gender/ethnic diversity is linear and positive.

Research limitations/implications

First, promoting gender/ethnic diversity not only requires strong policy but also political will to lead by example. Political regimes that provide lip-service without effective implementation threaten to derail any efforts in furthering the diversity agenda. Second, the presumption of a linear diversity–performance relationship is fallacious. Further studies, especially in pluralistic societies, must not discount the subtleties of intergroup conflicts. Third, in light of allegations of prejudicial hiring policies, Malaysian firms should embrace diversity, not only in the boardroom, but also among its workforce as employee diversity improves firm performance.

Originality/value

Prior studies on gender/ethnic diversity in Malaysia have returned mixed results but thus far, there has been no satisfactory explanation for this phenomenon. This study attributes it to lack of political will and cultural subgroup conflicts – two pertinent issues that were never considered in the literature. Prior studies have also exclusively focused on boardroom diversity. This study goes further by examining employee diversity – particularly important since most empowerment and diversity initiatives are targeted at lower level employees. This study is also the first to provide an objective benchmark for gender diversity (30–35% female directors) and ethnic diversity (less than 40% from one ethnicity) to achieve optimal performance.

Details

Asia-Pacific Journal of Business Administration, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1757-4323

Keywords

Book part
Publication date: 5 September 2022

Raushan Aman, Reem Alothmany, Maria Elo and Julie Emontspool

The issues of women empowerment and gender equality have gained the increased attention of scholars and policymakers in Western societies. Gender diversity and the…

Abstract

The issues of women empowerment and gender equality have gained the increased attention of scholars and policymakers in Western societies. Gender diversity and the professional participation of women are increasingly acknowledged as transversal drivers for economic development. However, in less developed countries, research and evidence are still accumulating. Thus, this study aims to explore actors and factors empowering female talent to work and achieve managerial positions and run their businesses in two countries with patriarchal social and cultural norms, Saudi Arabia and Kazakhstan. Based on the qualitative interview data collected from 15 female managers and entrepreneurs working in the healthcare sector, we explore the conditions under which women can start their businesses and get promoted to managerial positions in the organizations. Our findings indicate that individual agencies and structural factors in female talent capacity building and empowering women to achieve higher hierarchical positions in organizations form together important dynamics that foster more inclusive practices and internalized schemes. Furthermore, the findings also demonstrate the importance of female talent empowerment in achieving gender diversity in managerial positions in healthcare organizations. Hence, by stating that increased female talent participation in the upper-echelons of the organization and entrepreneurship contributes to the decent employment of women in countries with male-dominated social and cultural norms and promotes the more inclusive and sustainable economic growth of these countries, our research contributes to United Nations (UN) Sustainable Development Goals (SDG) #5.5, #8.5 and #10.2.

Article
Publication date: 2 March 2022

Zhongtian Li, Jing Jia and Larelle Chapple

This paper aims to uncover the global trend on the relationship between board gender diversity and firm risk. In addition, this paper investigates how country…

Abstract

Purpose

This paper aims to uncover the global trend on the relationship between board gender diversity and firm risk. In addition, this paper investigates how country characteristics affect the relationship between board gender diversity and firm risk.

Design/methodology/approach

This study uses a large sample of firms in 45 countries for the period from 2002 to 2018. Ordinary least square regression is used as a baseline methodology, along with firm fixed effects. Difference-in-differences regression, two-stage least squares regression (instrumental variables approach) and change-on-change regression are adopted to better mitigate endogeneity.

Findings

This study finds that board gender diversity is associated with lower firm risk worldwide. In addition, the negative effect of board gender diversity on firm risk is more pronounced for firms that can more easily attract female directors, and for countries with lower power distance and greater preference for individualism.

Practical implications

The findings offer insights into the intense debate in recent years among academics and practitioners on the effect of board gender diversity on firm outcomes. Shareholders and directors may take the findings into account when they consider appointing female directors. The findings should be of interest to policymakers in countries that have not yet promoted board gender diversity.

Originality/value

By using an international sample with board gender quotas in different countries, this paper provides novel and persuasive evidence regarding the impact of board gender diversity on firm risk. This paper also adds to the literature by showing that the relationship between board gender diversity on firm risk is influenced by country characteristics.

Details

Managerial Auditing Journal, vol. 37 no. 4
Type: Research Article
ISSN: 0268-6902

Keywords

Article
Publication date: 10 February 2022

Isaac Boadi, Raymond Dziwornu and Daniel Osarfo

The marginalization of women on boards is a heavily discussed topic across the world, especially in Ghana. Apart from estimating the link between boardroom gender diversity

Abstract

Purpose

The marginalization of women on boards is a heavily discussed topic across the world, especially in Ghana. Apart from estimating the link between boardroom gender diversity and technical efficiency of banks, this study aims to test the presence of upper echelons theory in the Ghanaian banking sector.

Design/methodology/approach

The study examines data from 2000 to 2019 annual reports of 23 banks in Ghana. The stochastic frontier analysis is used to estimate the impact of boardroom gender diversity on technical efficiency of banks in Ghana.

Findings

This study finds that greater boardroom gender diversity generates technical efficiencies for banks. The results remain unchanged after accounting for bank types (listed and non-listed). Thus, all banks benefit in terms of technical efficiency from more boardroom gender diversity. The upper echelons theory is validated in the Ghanaian banking context. Overall, the study supports pro-gender diversity on boards.

Practical implications

The results have implications at corporate, social and national levels. It supports the need for policies that improve greater boardroom gender diversity.

Originality/value

This study adds to a growing number of non-developed countries by investigating the link between the boardroom gender diversity and technical efficiency of banks in Ghana, a country which historically has had minimal female participation in the workforce. New insight is, therefore, offered into this relationship by using data which examines the technical efficiency of banks periods before and after the Women in Finance Charter in 2016.

Details

Corporate Governance: The International Journal of Business in Society, vol. 22 no. 5
Type: Research Article
ISSN: 1472-0701

Keywords

Article
Publication date: 11 April 2022

Moncef Guizani and Gaafar Abdalkrim

The purpose of this paper is to examine the impact of board gender diversity on firm financial distress for a sample of 367 non-financial firms listed on Bursa Malaysia…

Abstract

Purpose

The purpose of this paper is to examine the impact of board gender diversity on firm financial distress for a sample of 367 non-financial firms listed on Bursa Malaysia over the period from 2011 to 2019.

Design/methodology/approach

The study employs both panel logistic regression and dynamic generalized method of moments estimator to determine the impact of board gender diversity on the likelihood of financial distress. Altman Z-score model is used as a proxy for financial distress indicator. The bigger the Z-score, the smaller the risk of financial distress.

Findings

The results show that board gender diversity could help to improve board effectiveness by preventing corporations from being too exposed to financial distress and bankruptcy. In particular, whether they are independent or inside members, women directors are likely to reduce the likelihood of financial distress. The results also show that the effect of female directors on the likelihood of financial distress is strengthened through more board independence. The results are consistent with those in prior research that documents the benefits of board gender diversity.

Practical implications

This paper provides insights for corporate decision makers in emerging economies, helping them to determine the board's design in terms of roles and composition that promote governance practices and prevent financial troubles. Furthermore, the findings of this study may be useful regulators as they shed light on the importance to undertake measures and reforms to promote board effectiveness by the introduction of gender diversity. Finally, this study also offers implications for society in general, considering that the practice of enhancing board gender diversity can significantly safeguard the interest of a wide range of stakeholders by reducing the chances of corporate bankruptcy.

Originality/value

While prior research has examined the effect of board gender diversity on firm performance, this study is the first to investigate the effect of board gender diversity on the likelihood of financial distress in Malaysia.

Details

Asia-Pacific Journal of Business Administration, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1757-4323

Keywords

Article
Publication date: 1 April 2022

Antonio Prencipe, Danilo Boffa, Armando Papa, Christian Corsi and Jens Mueller

The purpose of this study is to analyze the impact of human capital related to gender and nationality diversity in boards of directors on the innovation of university…

Abstract

Purpose

The purpose of this study is to analyze the impact of human capital related to gender and nationality diversity in boards of directors on the innovation of university spin-offs (USOs) in their entrepreneurial ecosystem. Following the intellectual capital (IC) framework and the resource dependence theory, upper echelons theory and critical mass theory, it hypothesizes that the relationship between board diversity and USOs’ firm innovation is non-linear.

Design/methodology/approach

To test the research hypotheses empirically, a sample of 827 Italian USOs over the period 2009–2018 was analyzed using zero-inflated Poisson regression modeling. A robustness test was also performed.

Findings

Gender obstacles remain in USOs’ entrepreneurial ecosystem, with little involvement of women in boards, and the benefits of human capital for firm innovation emerge with increased female representation. Nevertheless, a few foreign-born directors embody valued IC in terms of human capital from an internationally linked entrepreneurial ecosystem, which decreases with more foreign-born directors due to communication costs and coordination problems.

Research limitations/implications

The emerging non-linear relationships imply that gender- and nationality-diverse boards in USOs constitute critical human capital factors boosting the devolvement of entrepreneurial processes, in terms of firm innovation, in university entrepreneurial ecosystems.

Originality/value

This study contributes significantly to the move from traditional corporate governance analysis through an IC framework, fostering an understanding of the role of human capital and its diversity determinants in spurring firm innovation among USOs considering the university entrepreneurial ecosystem.

Details

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

Keywords

Article
Publication date: 3 February 2022

Ozgur Ozdemir and Ezgi Erkmen

The purpose of this study is to investigate the link between top management team (TMT) gender diversity and firm risk-taking in hospitality companies. The study also links…

Abstract

Purpose

The purpose of this study is to investigate the link between top management team (TMT) gender diversity and firm risk-taking in hospitality companies. The study also links female leadership to risk-taking. Finally, this study examines the moderating effects of TMT incentive pay and TMT age on the relationship between TMT gender diversity and firm risk-taking.

Design/methodology/approach

This study uses an unbalanced data set of 81 hospitality firms and 888 firm-year observations over the period of 1992–2020. The study uses fixed-effects regression estimation for primary analyses and addresses potential endogeneity concerns via two-stage least square regression with firm fixed-effects instrumental variable regression. Risk-taking is measured by total firm risk (i.e. the annualized volatility of daily stock returns). Main results are supported with alternative measures of firm risk and estimation methods.

Findings

The study finds that increasing TMT gender diversity leads to a reduction in firm risk-taking in the hospitality industry. Moreover, the study finds that hospitality firms led by a female CEO experience lower firm risk compared to firms led by a male CEO. Finally, the study finds evidence that the relationship between TMT gender diversity and firm risk is contingent on the level of incentive pay awarded to TMT members and the age of TMT members. Increasing incentive pay and aging executive teams decrease the risk reduction effect of TMT gender diversity.

Practical implications

The findings of this study recommend that firm risk-taking in the hospitality industry is related to gender diversity in TMTs. Hence, the board of directors should pay attention to gender composition for executive positions for risk management. Moreover, the results also suggest that care should be exercised when using incentive pay to align the interests of managers and shareholders. Finally, the board of directors needs to consider both gender diversity and age of the TMT members for TMT composition to manage executives’ risk-taking behavior.

Originality/value

This study fills a research gap in the hospitality literature by providing empirical evidence for the link between TMT gender diversity and firm risk-taking. Additionally, the study introduces incentive pay and age of TMT as contingency factors for the link between TMT gender diversity and firm risk-taking.

Details

International Journal of Contemporary Hospitality Management, vol. 34 no. 5
Type: Research Article
ISSN: 0959-6119

Keywords

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…

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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. 45 no. 4
Type: Research Article
ISSN: 2040-8269

Keywords

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