Search results

The determinants that contribute to reducing stock price crash risk have garnered attention from scholars and practitioners. However, our understanding of the relationship between board diversity and stock crash risk, as well as the contextual factors that influence this relationship, remains limited. To address this gap, this study aims to investigate how different attributes of board diversity affect stock price crash risk, particularly under conditions of higher performance hazard and ownership concentration.

Using a two-stage least squares fixed-effects estimator, the authors analyze a panel data set of 1,792 firm-year observations across 282 firms listed on the KOSPI200 from 2010 to 2019.

Relation-oriented diversity reduces future stock price crash risk, particularly when firms experience performance shortfalls and have concentrated ownership structures, but task-oriented diversity has no significant effects. The results imply that only relation-oriented diversity strengthens governance mechanisms by curtailing managerial bad news withholding behaviors, and the role of relation-oriented diversity in reducing stock crash risk becomes more crucial when firms have higher performance hazard and concentrated ownership.

This study makes crucial contributions as follows: the authors contribute to the stock crash risk literature by shifting the focus from how to when board diversity matters in assessing stock crash risk; the authors extend the board diversity research and enhance scholarly understanding of the effects of board diversity on corporate governance by highlighting that not all aspects of board diversity improve firm governance mechanisms; and the authors widen the lens from a single attribute to multiple attributes of diversity to reveal the effects of diversity on boards in assessing future crash risk.

This study aims to examine the impact of boardroom diversity on the financial stability of Chinese financial listed firms. Boardroom diversity is quantified in the following aspects: relation-oriented diversity and task-oriented diversity.

Panel data on Chinese financial listed firms between 1998 and 2017 are used in this study. Panel regression is used to analyze the firm data for fixed effects and robust standard errors.

Task-oriented diversity of the board increases financial stability. Regarding the impact of boardroom diversity on firm risk, the results reveal that task-oriented diversity of the board reduces firm risk, which supports the predictions of this research. Regarding the moderating effect of state ownership on the relationship between boardroom diversity (task- and relation-oriented diversity) and financial stability, the results show that state ownership enhances the positive impact of the board’s task-oriented diversity on financial stability.

Task-oriented diversity of the board enhances the financial stability of Chinese financial listed firms. As existing studies on bank boards in China are limited, the findings of this research can be used when crafting policy initiatives to enhance financial stability.

To the best of the authors’ knowledge, this study is the first to examine the effect of boardroom diversity, particularly task- and relation-oriented diversity, on financial stability. It provides empirical support that boardroom diversity positively affects the financial stability of Chinese financial listed firms. This research also offers empirical evidence that state ownership enhances the positive impact of the board’s task-oriented diversity on financial stability.

The purpose of this study shows how overall board diversity influences corporate risk-taking. Board diversity is quantified into task-oriented diversity (tenure and education) and relation-oriented diversity (age and gender). Further, this study tests whether the association of board diversity and corporate risk varies across state-owned firms (SOEs) and non-state-owned firms (NSOEs).

The authors used a sample of Chinese listed firms over the period 1999-2017. The results are estimated using the fixed-effects model. To deal with the endogeneity problem and single model bias, the authors use a dynamic model, i.e. two-step generalized method of moment’s model.

The results show that both task-oriented and relation-oriented diversity reduces corporate risk. Further, the authors document that overall board diversity reduces risk-taking across different types of firms, that is, SOEs and NSOEs. These results are consistent after controlling for endogeneity problems.

The results provide implications for enhancing corporate governance practices by considering overall board diversity as an important factor influencing corporate decisions. The findings suggest that policymakers and shareholders should consider different diversity attributes important for the composition of a board, which can enhance board outcomes.

Most of the prior studies considered only one dimension of diversity, and therefore, have overlooked the overall board diversity. Unlike prior studies, this study considers four board diversity attributes – age, gender, tenure and education, and further tests their association with corporate risk. Further, this study also examines the effect of overall diversity on corporate risk in SOEs and NSOEs.

The purpose of this study is to investigate the relationship between board diversity measured as relation-oriented, task-oriented and board overall diversity and firm’s investment efficiency.

This study estimates four dimensions of board diversity, including age, gender, tenure and education. The four dimensions are further categorized in relation-oriented diversity (i.e. age and gender), task-oriented diversity (i.e. tenure and education) and overall board diversity (relation and task oriented). Panel data analysis is used to examine the board diversity–investment efficiency relationship in Chinese listed firms during the years 2003–2018. The findings of the study are robust to a battery of econometric techniques.

This study finds relation-oriented, task-oriented and overall diversity of a board curb investment inefficiency by discouraging sub-optimal investment (over- or under-investment). In other words, board diversity improves firms’ investment efficiency.

The results suggest that board diversity plays a significant role in corporate decisions. The findings illustrate that board diversity disciplines the management, reduces agency conflicts and thereby improves corporate governance, resulting in higher investment efficiency.

This study has two important contributions. First, this study extends the prior literature of investment efficiency by considering socio-psychological dimension of the board diversity by constructing relation- and task-oriented diversity. Second, contrary to earlier studies on board diversity, this study takes four facets of board diversity, i.e. age, gender, education and tenure that improve corporate governance mechanism.

The purpose of this study is to explore whether different board diversity attributes (corporate governance aspect) can be used to predict financial distress. This study also aims to identify what type of prediction models are more applicable to capture board diversity along with conventional predictors.

This study used Chinese A-listed companies during 2007–2016. Board diversity dimensions of gender, age, education, expertise and independence are categorized into three broad categories; relation-oriented diversity (age and gender), task-oriented diversity (expertise and education) and structural diversity (independence). The data is divided into test and validation sets. Six statistical and machine learning models that included logistic regression, dynamic hazard, K-nearest neighbor, random forest (RF), bagging and boosting were compared on Type I errors, Type II errors, accuracy and area under the curve.

The results indicate that board diversity attributes can significantly predict the financial distress of firms. Overall, the machine learning models perform better and the best model in terms of Type I error and accuracy is RF.

This study not only highlights symptoms but also causes of financial distress, which are deeply rooted in weak corporate governance. The result of the study can be used in future credit risk assessment by incorporating board diversity attributes. The study has implications for academicians, practitioners and nomination committees.

To the best of the authors’ knowledge, this study is the first to comprehensively investigate how different attributes of diversity can predict financial distress in Chinese firms. Further, this study also explores, which financial distress prediction models can show better predictive power.

The first aim of this study is to explore to what extent communities of practice occur in the school workplace. The second aim is to explore the relation between communities of practice and diversity in composition of teacher teams.

Quantitative as well as qualitative data were gathered from seven teacher teams in a school for secondary education. Questionnaires and observation instruments were used to measure and analyze teacher teams' collaborative activities and diversity in composition.

Data suggest that communities of practice actually occur in the school workplace, but to a moderate extent. Also, communities of practice are related to four of the five diversity attributes that were investigated.

The current study is a snapshot measurement of communities of practice. Future research is recommended to focus on the development of communities of practice in the school workplace by including longitudinal measurements.

Implications for teachers and administrators include follow‐up activities aimed at stimulating and sustaining communities of practice as well as taking diversity considerations in team composition into account.

Studies suggest that a community is a promising context for embedding collaboration into the culture of the school. However, empirical research that focuses on communities in the school workplace seems largely absent. This study provides insight in the occurrence of communities of practice from two perspectives: the perception of community members and the observation from outsiders.

Diversity management plays a significant role in the organization’s outcomes. This study seeks to provide a brief review of the history of diversity management and to identify the articles published on diversity management since 1991. A systematic review of the literature has been carried out to understand the literature in more detail to know the future scope of research.

This study provides a comprehensive systematic review of quantitative, qualitative and theoretical studies published in leading peer-reviewed management journals from 1991 to 2018 and identifies 123 articles that fall within its established search inclusion criteria.

The literature review highlighted several aspects related to diversity management. The findings of the study revealed that there is a high concentration of researches in the USA and most number of articles published in the Academy of Management Journal. Although diversity management is a very emerging topic across the globe in management literature yet there is a lack of research in developed countries. Furthermore, most studies are found empirical in nature and the majority of the studies were published during the period of 1996–2000. This finding suggests that age, gender and racial diversity have been repeatedly discussed in diversity management research while other forms of diversity have given less attention

This study is one of the first systematic studies that describe the in-depth analysis of diversity management literature. The significant contribution of this study is to propose the integrated model with contemporary trends and patterns of results reported in diversity research, as well as contextual factors that have received more attention to date.

Workforce diversity is widely believed to enhance the knowledge and perspectives of organizations. The purpose of this study is to synthesize the existing diverse literature on workforce diversity and to enlighten the avenues for future research in managing workforce diversity.

This study performs a comprehensive review of empirical and conceptual studies published on workforce diversity and its outcomes in the top 13 peer-reviewed leading management journals between 1990 and 2019.

The assessment of diversity literature reported mixed and inconsistent results that are the critical challenges of diversity management. Furthermore, most studies have not individually identified the problems of diversity dimensions. To understand the problems, this study has divided the different dimensions of diversity (e.g. age, gender, race, education, functional background and tenure) and their results, supported by various theories. The findings of this study suggested a different reason for existing conflicts and proposed a future research agenda.

To overcome the challenges of diversity, this study has proposed the future research agenda for future research. to take optimum advantage of workforce diversity, this study contributes a theoretical perspective that enhances the understanding of existing diversity in organizations and develops diverse organizations.

Past research on how to compose a team is ambiguous, especially with respect to diversity dimensions. The authors argue that previous inconsistencies in results have arisen for two main reasons. First, there is a lack of clarity about the concept of age diversity, as age separation, age variety and age disparity are frequently used synonymously, but capture very different aspects of diversity. Second, in many research settings, age and tenure diversity have been intertwined. When staffing teams, many staff managers ask for staffing advise concerning staff diversity in order to enhance efficiency. This staffing problem is mainly a question how homogeneous and heterogeneous teams should be composed. In this paper, the authors capture both – age and tenure diversity – as well as their interaction and argue that age separation and tenure variety are most likely to affect team performance in a routine task. The paper aims to discuss these issues.

The authors are testing the hypothesis using rich quantitative field data from a steel company.

The results show that age separation decreases performance while tenure variety increases performance. Moreover, the beneficial effects of tenure variety cannot arise when age separation is too large.

The authors show that diversity research is very sensitive to the operationalization of diversity.

Managers can benefit from the study by learning how to optimally staff teams: while age diversity should be low, tenure diversity can be high.

Due to the unique data set, the authors can separate the influence of tenure and age diversity.