Board diversity, firm risk, and corporate policies

Bernile, Gennaro; Bhagwat, Vineet; Yonker, Scott E.

doi:10.1016/j.jfineco.2017.12.009

Cited by 685 publications

(518 citation statements)

References 32 publications

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“…In this study, we use two (market and business) measures of corporate risk. To calculate market risk, we follow the measurement method of Bernile, Bhagwat, and Yonker (2018). We calculate industry-adjusted Beta coefficient to measure market risk.…”

Section: The Measurement Of Corporate Riskmentioning

confidence: 99%

Corporates' strategic responses to economic policy uncertainty in China

Mirza¹,

Ahsan

2019

Bus Strat Env

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Using a novel news-based index of economic policy uncertainty, this paper studies the impact of economic policy uncertainty on corporate strategic positioning and corporate risk in China from 2009 to 2015. The study also investigates the impact of corporate strategic positioning on corporate risk. The results show that corporate strategic positioning and economic policy uncertainty have a significant positive impact on corporate risk. The results also explain that economic policy uncertainty increases the market risk of the firms irrespective of their corporate strategy. However, it increases the business risk of prospector firms and decreases the business risk of defensive firms. The study may help the firms to formulate and improve their strategic positioning while considering economic policy uncertainty. Our results are robust to alternate proxies of economic policy uncertainty and corporate risk.

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Section: The Measurement Of Corporate Riskmentioning

confidence: 99%

Corporates' strategic responses to economic policy uncertainty in China

Mirza¹,

Ahsan

2019

Bus Strat Env

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“…They report evidence that gender diversity appears to hurt firm performance and shareholder wealth. 7 However, more recent work by Kim and Starks (2016) and Bernile et al (2018) emphasizes the diverse skills offered by these new director appointments, and the Eckbo et al (2019) methodological critique of several of these early studies raises serious doubts about the reliability of the conclusion that adding gender diversity to boards has negative performance and valuation effects. Instead, these latter studies suggest that board gender diversity can actually have positive or at least valuation-neutral effects.…”

Section: When Are Gender-diverse Boards Beneficial?mentioning

confidence: 99%

A Survey of Recent Evidence on Boards of Directors and CEO Incentives

Masulis

2020

Asia-Pac J of Fin Stud

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This article surveys the recent literature on boards of directors and the interplay between director incentives and CEO incentives. The primary focus is on how the incentives and other characteristics of directors, boards, and CEOs interact to affect firm performance. The article reviews the recent evidence documenting a causal relationship between board independence and measures of firm performance. It also discusses the major limitations of the current measure of director independence. Finally, the article highlights how board independence provides strong incentives for CEOs to create firm value and examines the recent evidence on what other director characteristics improve board effectiveness.

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“…The Chief Executive Officer (CEO) as the decision controller must be able to prioritize rationality in investment decision making, besides the emotional and psychological factors of the CEO itself. One of the most studied executive board diversity is gender diversity (Bernile, Bhagwat, & Yonker, 2018). Gender diversity can improve the quality of decision making (Campbell & Vera, 2010;Lückerath-Rovers, 2013).…”

Section: Introductionmentioning

confidence: 99%

“…The existence of women as executive boards has a positive effect on firm value (Bernile et al, 2018;Campbell & Vera, 2010;Dewi & Dewi, 2016;Hernandez, Ugedo, & Vera, 2015;Lückerath-Rovers, 2013;Triana & Asri, 2017). This positive effect caused by several things.…”

Section: Introductionmentioning

confidence: 99%

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Diversity of the Executive Board, Investment Decisions, and Firm Value: Is Gender Important in Indonesia?

Yuliana

2019

JRAK

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The purposes of this research are to determine the effect of executive board gender diversity on firm value. Gender diversity shows that companies do not discriminate while evaluating employee performance. This diversity affects the fair competition conducted by employees to show the best performance so they can occupy the highest positions in the company. Gender diversity has the impact of a difference in the level of optimism, confidence, and risk preferences. The feminine nature of women influences the quality of investment decision making, which has an impact on increasing firm value. The signalling theory is used to describe the stakeholders perceived on investment decision making by female CEOs. Research using PLS in LQ45 registered companies in Indonesian Stock Exchange for the years 2014-2017. The results showed that the composition of the female CEO can mediate the relationship between investment decisions and firm value. The results have implications to support the increasing gender diversity in companies because the patriarchal culture adopted in Indonesia causes male domination in decision making both in the family, community, and the working environment.

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Board diversity, firm risk, and corporate policies

Cited by 685 publications

References 32 publications

Corporates' strategic responses to economic policy uncertainty in China

Corporates' strategic responses to economic policy uncertainty in China

A Survey of Recent Evidence on Boards of Directors and CEO Incentives

Diversity of the Executive Board, Investment Decisions, and Firm Value: Is Gender Important in Indonesia?

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