Board structure, firm performance and risk: Recent evidence from Greece

Rompotis, Gerasimos G.

doi:10.22495/cbv16i2art3

Cited by 7 publications

(2 citation statements)

References 32 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…While this sample only represents about a half of the initial firms' population, this sample size is still larger relative to existing studies that examined non-financial (ESG) performance and board gender diversity in Greece (e.g. Karaiskos et al, 2019;Rompotis, 2020;Skouloudis et al, 2014;Terjesen et al, 2016). Bloomberg started to report firms' ESG scores and board of director data since 2006.…”

Section: Sample Formationmentioning

confidence: 99%

“…Research studies have identified that companies from some EU countries, such as Norway and Germany, have been considered as early adopters of the EU Directive 2014/95/EU, especially to increase women participations (gender quota) in corporate leadership, while others, such as Greece and Cyprus, have been considered as later adopters (Terjesen et al, 2015(Terjesen et al, , 2016Xhaho et al, 2021). This study focuses on Greece since Greece has been considered as one of the lagging countries to implement policies that promote gender diversity in corporate leadership within the European Union (Rompotis, 2020). Extant literature has examined the development of corporate governance and corporate social responsibility in Greece (e.g.…”

Section: Introductionmentioning

confidence: 99%

See 1 more Smart Citation

Supply and demand for gender diversity in corporate leadership – the critical mass: evidence from Greece

Harjoto

2023

AJB

View full text Add to dashboard Cite

PurposeThis study aims to examine whether a change in the regulatory requirement toward gender quota for corporate leadership significantly affects the demand and therefore, it increases the presence of women directors and women CEOs. Examining the supply-side, the study also examines whether the supply for women directors and women CEOs based on the presence of qualified women who currently hold upper, middle, or lower management positions is positively related with the presence of women directors and women CEOs. Furthermore, based on the critical mass hypothesis, this study examines whether the presence of women CEOs and critical mass for women directors bring significant impacts on firms' financial and environmental, social and corporate governance (ESG) performance during the subsequent period.Design/methodology/approachUsing the multivariate regression analysis, this study empirically examines the impact of the shift in the demand for women directors and CEOs from the enactment of the Greek Law 4403/2016 on gender quota for corporate leadership. This study also examines the impact of the supply for women in corporate leadership, measured by the percentage of women who hold upper, middle, or lower management positions, on the presence of women directors and CEOs. Then, this study examines the impact of women directors and women CEOs on firms' subsequent financial and ESG performance.FindingsBased on a sample of 71 publicly listed Greek firms and 20 Cyprus listed firms as a control group during 2006–2019, the study finds evidence that both the supply-side and the demand-side bring positive effects on greater women participation in corporate boards. However, there is no evidence that the supply and demand affect the presence of women CEOs. The presence of women CEOs has a positive effect on ESG through environmental and social pillars. The study finds evidence to support the critical mass hypothesis that firms with three or more women boards tend to have higher financial and ESG performance.Social implicationsUnderstanding the supply and demand for gender diversity in corporate leadership in countries that are considered as lagging is critical to foster the global objective to level the playing field for women to participate in corporate management leadership as important part the United Nations Sustainable Development Goal (UNSDG) 5.5. The positive impact of women directors on corporate financial and social performance can be achieved, especially when the critical mass is reached. This highlights the importance of greater gender representations in corporate boards and top executive level in order to make a meaningful social change.Originality/valueThis study demonstrates that the supply of women who currently hold corporate management positions has positive influence on the presence of women boards. This study also demonstrates that a national legislation that promotes gender diversity for corporate board has a positive impact on board gender diversity among Greek listed firms. This study also highlights the importance of integrating the critical mass perspective in considering the impact of supply and demand for women in corporate leadership on firms' financial and ESG performance.

show abstract

Section: Sample Formationmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Supply and demand for gender diversity in corporate leadership – the critical mass: evidence from Greece

Harjoto

2023

AJB

View full text Add to dashboard Cite

show abstract

Gender diversity and the stock price

Laurens

2022

CBSR

View full text Add to dashboard Cite

The current study evaluates how gender diversity impacts the stock price, whether on the audit committee, commissioners, or directors, using firm size as the moderating variable. A total of 240 secondary data samples were derived from 24 publicly listed banking institutions from 2012–2021. The multiple regression and moderated regression analysis used to process the sample research was considered the most suitable for this study. The statistical test in the first model showed that the existence of women executives on the board of directors impacts the stock price. This first model result is in line with the research by Báez, Báez-García, Flores-Muñoz, and Gutiérrez-Barroso (2018). The gender diversity in the composition of commissioners and audit committees showed that it had not impacted the stock prices. Furthermore, the directors and audit committees affected the stock price in the second model. This result is in line with the research by Qayyum et al. (2021) that demonstrated that the women officers on a company’s board could lower crash risk in stock price. Contrarily, the variable in this second model, the board of commissioners, did not impact the stock price. Thus, the second model noticed that firm size, as moderating variable, weakened the impact of the audit committee on the stock price. The current study contributes to the literature concerning the impact of gender diversity in company officers’ levels on the stock price. Future researchers can use other samples from other emerging markets countries. Further investigations are urged to broaden the context of the study to achieve more enriched findings.

show abstract

An activist investor’s successful corporate governance and strategic management impacts: An updated L Brands case study

Grove

Clouse

2021

View full text Add to dashboard Cite

The key research aim of this paper is to analyze whether an activist investor’s recommendations for financial, corporate governance, and strategic management performances were successful or not. This paper updates the initial case study of the activist investor, Barington Capital Group, in analyzing the performance of a public company, L Brands, which had lost $20 billion in market capitalization in the last three years prior to the public letter from Barington to the L Brands CEO in March 2019. This updated case study analyzes whether Barington’s initial recommendations worked as operational guidelines for improving L Brands’ financial, corporate governance, and strategic management performances. From its financial analysis, Barington recommended either an initial public offering of the superior performing Bath & Body Works brand or a spinoff of the weak performing Victoria’s Secret brand. From its corporate governance and strategic management analysis, Barington recommended that L Brands improve the composition of its board of directors whose deficiencies in director independence, industry experience, and diversity hindered its ability to effectively oversee and advise strategic management. It is important to note that this paper was prepared exclusively with public information.

show abstract

Board structure, firm performance and risk: Recent evidence from Greece

Cited by 7 publications

References 32 publications

Supply and demand for gender diversity in corporate leadership – the critical mass: evidence from Greece

Supply and demand for gender diversity in corporate leadership – the critical mass: evidence from Greece

Gender diversity and the stock price

An activist investor’s successful corporate governance and strategic management impacts: An updated L Brands case study

Contact Info

Product

Resources

About