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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: 8 February 2024

Judith Callanan, Rebecca Leshinsky, Dulani Halvitigala and Effah Amponsah

This paper examines gender diversity in the Australian valuation industry from the perspective of valuers in senior management and leadership roles and discusses gender diversity…

Abstract

Purpose

This paper examines gender diversity in the Australian valuation industry from the perspective of valuers in senior management and leadership roles and discusses gender diversity policies and practices in their organisations. Then, it explores the initiatives that can be implemented to improve gender diversity in the Australian valuation industry.

Design/methodology/approach

A focus group discussion was conducted with valuers in senior management and leadership roles from selected large valuation firms and government valuation agencies in Melbourne, Australia. Data collected through the focus group discussion was combined with secondary data sourced from journals, online articles and archival materials.

Findings

The findings reveal that whilst gender diversity in the Australian valuation industry has improved over the years, females remain underrepresented. Nonetheless, whilst some valuation companies have recognised the need to address the underrepresentation of women and introduced specific gender-focussed human resource policies and practices, these initiatives are not streamlined and implemented across the industry.

Research limitations/implications

The study highlights the need for closer collaboration between key stakeholders such as universities, professional associations, valuation companies and government agencies in devising strategies to attract female talents into the valuation industry.

Originality/value

The paper is the first empirical study to assess gender diversity in the Australian valuation industry from the perspective of valuers in management and leadership roles. The proposed policies can inform future initiatives to improve gender diversity in the valuation industry.

Details

Property Management, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0263-7472

Keywords

Article
Publication date: 2 February 2024

Akriti Chaubey and Sunaina Kuknor

This paper aims to examine the barriers that act as a hindrance and are the reason behind the struggles for the successful practice of diversity and inclusion. It also provides…

Abstract

Purpose

This paper aims to examine the barriers that act as a hindrance and are the reason behind the struggles for the successful practice of diversity and inclusion. It also provides suggestions that organisations across the Asian region can adopt to have a conducive work environment to flourish diversity and inclusion.

Design/methodology/approach

Qualitative data were collected from 21 in-depth semi-structured interviews, where the male and female interviewee ratio was 6:4. The interviewees were diversity and inclusion leaders, diversity and inclusion consultants and human resources (HR) experts from Asian countries such as India, Sri Lanka, Malaysia, UAE, Singapore, Bangladesh and Nepal. The interviewees belonged to varied industries, including information technology, automobile, manufacturing, engineering, logistics and independent consultants. Every interview recorded was transcribed, and an inductive content analysis technique was used using NVivo. Broad themes and several antecedents were identified which hinder the successful practice of diversity and inclusion.

Findings

There exists a patriarchal mindset in society as the main reason; that is why Asian countries are finding it difficult and are struggling to embrace diversity and inclusion successfully. There is a lack of awareness amongst managers about how inclusive gender diversity impacts the company’s financial status. Reports show that companies that have female board members have better profit margins in comparison to those that do not.

Research limitations/implications

This study was conducted within one industry setting, the service sector; therefore, the findings may not apply to other industries because of the different organisational cultures and HR policies.

Practical implications

This study offers managerial implications that can help the organisation foster and embrace diversity and inclusion by overcoming the barriers.

Social implications

There should be fair and equitable inclusivity of females in the workplace. Female employees should be heard without biases and discrimination and allowed to speak up with equity. Females should not be seen differently during organisational decision-making, participation and empowerment.

Originality/value

To the best of the authors’ knowledge, this study is one of the few to explore the challenges faced by Asian region organisations to embrace diversity and inclusion by empirical evidence. The study shows how the Asian region struggles to go beyond gender diversity and move away from patriarchal hegemony, which is the study’s unique contribution.

Details

Journal of Asia Business Studies, vol. 18 no. 2
Type: Research Article
ISSN: 1558-7894

Keywords

Article
Publication date: 10 May 2023

Subba Reddy Yarram and Sujana Adapa

Do women contribute to performance of companies on which they serve as board of directors? Many prior studies examine this issue, but no consensus is reached on the benefits of…

Abstract

Purpose

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

Design/methodology/approach

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

Findings

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

Research limitations/implications

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

Practical implications

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

Originality/value

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

Details

International Journal of Managerial Finance, vol. 20 no. 1
Type: Research Article
ISSN: 1743-9132

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

Article
Publication date: 22 September 2023

Najul Laskar, Jagadish Prasad Sahu and Khalada Sultana Choudhury

The main purpose of the study is to investigate the impact of gender diversity both at the board and workforce level on firm performance (FP) in the Indian context.

Abstract

Purpose

The main purpose of the study is to investigate the impact of gender diversity both at the board and workforce level on firm performance (FP) in the Indian context.

Design/methodology/approach

This study is based on annual data of 200 companies listed on Bombay Stock Exchange (BSE) for the period 2012–2019. The authors have used the fixed-effects (FE) regression and system generalized method of moments to estimate the impact of board gender diversity and workforce gender diversity (WGD) on FP. The authors have used Blau's Index (BI) and Shannon's Index (SI) to measure gender diversity. Further, the authors have used return on assets and Tobin's Q (TBQ) to measure FP.

Findings

The authors' panel regression results suggest that board gender diversity and WGD have a positive and statistically significant impact on FP. The authors' findings are robust across different methods of estimation and alternative measures of FP.

Originality/value

This paper examines the impact of gender diversity both at the board and workforce level on FP of 200 companies listed on BSE. The authors' study contributes to the literature that is sparse in the Indian context and provides new insights on the impact of board and WGD on FP. The findings have useful policy implications. To achieve better performance, it is imperative to appreciate gender diversity at the governance and workforce level in a fast-growing economy like India.

Details

Managerial Finance, vol. 50 no. 3
Type: Research Article
ISSN: 0307-4358

Keywords

Article
Publication date: 18 January 2024

Ayman Issa and Mohammad In’airat

This study aims to investigate the relationship between female leaders at board and executive levels and e-waste reduction in firms listed on the FTSE All-Share Index.

Abstract

Purpose

This study aims to investigate the relationship between female leaders at board and executive levels and e-waste reduction in firms listed on the FTSE All-Share Index.

Design/methodology/approach

The study uses a sample of nonfinancial firms listed in the FTSE All-Share Index between 2004 and 2021, comprising 2,523 firm observations. The primary technique used is ordinary least squares, with subsample analysis and the two-stage least squares method used to address endogeneity concerns.

Findings

This study suggests that the presence of female directors and executives can bring a more comprehensive and diverse approach to e-waste management, which can contribute to improved e-waste reduction initiatives. However, the study also highlights that the impact of female leadership on e-waste reduction may vary based on factors such as the size of the firm and the industry’s carbon footprint.

Practical implications

The practical implications of this research have noteworthy implications for companies and policymakers alike. By placing importance on gender diversity, companies can reap the benefits of diverse perspectives and approaches when addressing environmental challenges. Policymakers, on the other hand, can contribute to positive environmental outcomes by advocating for gender diversity in corporate leadership.

Originality/value

The novelty of this research stems from its discovery that having female directors and executives in a firm leads to a broader and more varied approach to managing e-waste, ultimately enhancing efforts to reduce it. This underscores the significance of gender diversity in advancing sustainable practices within organizations. The study highlights the distinct viewpoints and experiences that women offer when tackling environmental issues in the corporate sphere.

Details

Journal of Global Responsibility, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2041-2568

Keywords

Article
Publication date: 26 February 2024

Ayman 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

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: 12 July 2022

Johana Sierra-Morán, Laura Cabeza-García and Nuria González-Álvarez

Although the literature on corporate governance and firm innovation finds that board independence is important, this paper proposes that the presence of independent directors…

Abstract

Purpose

Although the literature on corporate governance and firm innovation finds that board independence is important, this paper proposes that the presence of independent directors alone is not enough to explain their impact on firm innovation. This study analyses if diversity among independent directors may affect the relationship between board independence and firm innovation.

Design/methodology/approach

A panel data on a sample of 124 Spanish listed companies for the period 2008–2019 used to test the hypotheses.

Findings

Results suggest that independent directors have a negative effect on firm innovation, measured as number of patents, but when there are high levels of gender and nationality diversity among such directors, this negative effect may be mitigated.

Originality/value

Considering that firm innovation is a complex process associated with decision-making and that board independence itself may be not enough, this study goes a step further and delves deeper into the characteristics of independent directors. As far as is known, this paper is the first theoretical and empirical study that considers that independent director diversity as a moderating variable between board independence and firm innovation. Besides, this research contributes to the debate on the role of independent directors in firm innovation and the results may also serve as a guideline for policy makers and firms for structuring boards that are pro-innovation.

Details

European Journal of Innovation Management, vol. 27 no. 2
Type: Research Article
ISSN: 1460-1060

Keywords

Article
Publication date: 17 October 2023

Peter Kodjo Luh

This study aims to examine how woman leadership (i.e., woman board chairperson, woman chief executive officer (CEO) and board gender diversity) affects audit fee and also…

Abstract

Purpose

This study aims to examine how woman leadership (i.e., woman board chairperson, woman chief executive officer (CEO) and board gender diversity) affects audit fee and also ascertained the interactive effect of woman leadership and gender diversity on audit committee on audit fee.

Design/methodology/approach

The study applied ordinary least square and fixed-effect estimators on the data of 21 universal banks in Ghana for the period 2010–2021 to estimate the empirical results.

Findings

It is revealed that under the leadership of women (woman CEO and board gender diversity), higher external audit quality is ensured as higher audit fee is paid. Interestingly, it was found that with the presence of women on the audit committee, the integrity of internal controls and internal audit procedures are enhanced, which leads to quality financial reporting, calls for lower audit effort, hence lower audit fee.

Practical implications

The result indicates that firms can rely on the leadership of women in ensuring quality external audit and quality financial reporting, which ultimately helps to minimize the information risk to all stakeholders.

Originality/value

The paper contributes to extant literature by establishing that, under the leadership of women in banking entities from a developing country context, external audit quality and financial reporting are achieved.

Details

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

Keywords

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