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Article

Rohail Hassan and Maran Marimuthu

This paper aims to examine the demographic diversity at top-level management and its impact on the performance of Malaysian-listed companies. In addition, Muslim diversity…

Abstract

Purpose

This paper aims to examine the demographic diversity at top-level management and its impact on the performance of Malaysian-listed companies. In addition, Muslim diversity on corporate boards is examined.

Design/methodology/approach

Although many organisations aspire to be socially diverse, diversity’s consequences for organisational performance remain unclear. This study specifies the whole distinct mechanism and measures it independently, bridging as the demographic diversity among the board of directors (BODs) and bonding as the firm’s financial performance. To maintain the homogeneity factor, the empirical analysis has been confined to 12 fully fledged sectors and 529 Malaysian listed firms out of 798 firms selected on the basis of judgmental sampling during the period of 2013. The paper applies the correlation matrix and linear regression model to justify this phenomenon.

Findings

The empirical findings suggest that gender diversity (Muslim and Non-Muslim women) is positively significant with firm performance with regards to management, shareholders and market perspectives. It means that both Muslim and non-Muslim women are contributing to firm performance. Ethnic diversity (minority) and Muslim diversity (majority) have no impact on firm performance. On the other hand, interaction variables are positively significant with firm performance. It means that majority and minorities are essential for corporate boards to produce a greater performance.

Research limitations/implications

Future research could include more variables such as director’s age profile and foreign participation as well as other types of diversities, such as cognitive diversity and corporate diversity. In addition, another possible extension could be the investigation of diversity issues between small scale and large or high and low-profit firms. The findings provide insightful information to firms, as this study suggests that the diverse corporate boards can enhance firm performance.

Originality/value

In recent years, diversity issues have been examined with regard to firm performance of the listed companies. Whilst extensive literature exists on diversity issues, this issue is still under debate and has had inconsistent results. The paper attempts to fill the gap in the existing literature, discuss the empirically diverse corporate boards with the interaction approach and impact on the firm performance.

Details

Journal of Islamic Accounting and Business Research, vol. 9 no. 3
Type: Research Article
ISSN: 1759-0817

Keywords

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Article

Lisana B. Martinez, Valeria Scherger and M. Belén Guercio

The purpose of this paper is to organize and present the literature related to firm’s capital structure across the years and find the most relevant publications and…

Abstract

Purpose

The purpose of this paper is to organize and present the literature related to firm’s capital structure across the years and find the most relevant publications and authors in the research area. Moreover, the authors pretend to fill the gap in the literature by studying different works and their compatibility with the main theories.

Design/methodology/approach

The systematic literature review is conducted by using the Scopus database. The methodology applied is through a concise searching considering keywords, the most cited papers, the latest publications and theories that explain small and medium enterprises (SMEs) capital structure.

Findings

Some key aspects about the capital structure of firms and SMEs are identified, such as documents per year, type of publications, the most used languages, the top journals, the most cited papers, the most productive and influential authors and the latest published papers.

Research limitations/implications

The information presented is only informative from the Scopus database. Hence, this work only gives a general orientation of the most relevant research and its tendency of this database. More exhaustive works could be done using different keywords and analyzing other firms’ characteristics.

Practical implications

This kind of study is effective in evaluating the scientific production and to find the most important contributions of the subject. Furthermore, this information is useful for researchers’ studies on SME capital structure to underline the research direction and to be acquainted with the literature tendency.

Originality/value

There are not similar works that delve into the literature respect to SME capital structure and compare the main theories in relation to empirical works. Therefore, a synthesized evolution of previous works related to the capital structure of firms and SMEs is presented.

Details

Journal of Small Business and Enterprise Development, vol. 26 no. 1
Type: Research Article
ISSN: 1462-6004

Keywords

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