Corporate culture and board gender diversity: Evidence from textual analysis

Wongsinhirun, Nopparat; Chatjuthamard, Pattanaporn; Jiraporn, Pornsit

doi:10.1016/j.irfa.2023.102534

Cited by 14 publications

(12 citation statements)

References 118 publications

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“…1. Additional recent studies on corporate culture are Chindasombatcharoen et al (2023), Wongsinhirun et al (2023), Likitapiwat et al (2022) and Ongsakul et al (2021a).…”

Section: Notesmentioning

confidence: 99%

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Corporate culture, innovation and board size: recent evidence from machine learning and earnings conference calls

Chatjuthamard

Jiraporn

2023

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Purpose Taking advantage of a novel measure of innovative culture generated by advanced machine learning, this study aims to investigate how a culture of innovation is influenced by a crucial aspect of the board of directors, i.e. board size. The data on corporate culture of innovation are based on a textual analysis of earnings conference calls and represent a unique approach to capturing corporate culture. Design/methodology/approach In addition to the standard regression analysis, the authors also perform several sophisticated robustness checks, such as propensity score matching, entropy balancing, an instrumental-variable analysis, Oster’s (2019) method for testing coefficient stability, GMM dynamic panel data analysis and Lewbel’s (2012) heteroscedastic identification. Findings Corroborating the prediction of the resource dependence theory, the study results show that larger boards promote an innovative culture more effectively. A larger board with more directors provides the firm with additional resources, expertise and abilities, enabling it to develop an innovative culture more successfully. Originality/value This study is the first to examine the effect of board size on innovation using data on corporate culture generated by sophisticated computer algorithms. The authors advance the literature both in corporate governance and corporate innovation.

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“…1. Additional recent studies on corporate culture are Chindasombatcharoen et al (2023), Wongsinhirun et al (2023), Likitapiwat et al (2022) and Ongsakul et al (2021a).…”

Section: Notesmentioning

confidence: 99%

“…2. Recent research on board governance can be found in Loukil et al . (2019), Nordberg and Booth (2019), Padungsaksawasdi et al (2021), Chatjuthamard et al (2021), Chatjuthamard et al (2022b), Chindasombatcharoen et al (2023), Wongsinhirun et al (2023) and Pothisarn et al (2023).…”

Section: Notesmentioning

confidence: 99%

Corporate culture, innovation and board size: recent evidence from machine learning and earnings conference calls

Chatjuthamard

Jiraporn

2023

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“…Following these studies (Assenga et al, 2018;Badu and Appiah, 2017;Maswadi and Amran, 2023;Oliveira et al, 2022;Poletti-Hughes and Mart ınez Garcia, 2022;Pugliese et al, 2014;Wongsinhirun et al, 2023), we employ the agency theory and resource dependence theory to establish the association between board diversity and systematic risk. The integration of agency and resource dependency theories allows for a richer understanding of the relationship of board capital to monitoring and resource provision (Hillman and Dalziel, 2003).…”

Section: Literature Review and Hypothesis Developmentmentioning

confidence: 99%

“…, 2022; Poletti-Hughes and Martínez Garcia, 2022; Pugliese et al. , 2014; Wongsinhirun et al. , 2023), we employ the agency theory and resource dependence theory to establish the association between board diversity and systematic risk.…”

Section: Literature Review and Hypothesis Developmentmentioning

confidence: 99%

“…In this context, the presence of women on the board increases the shareholders' interest in management effectiveness and reduces agency costs (Amin et al, 2022). Therefore, gender diversity induces managers to adopt shareholderbeneficial strategies by improving board monitoring and mitigating agency problems (Wongsinhirun et al, 2023).…”

Section: Board Gender Diversity and Systematic Riskmentioning

confidence: 99%

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Board diversity and systematic risk: evidence from emerging markets

Daniel‐Vasconcelos

Crisóstomo

Ribeiro

2023

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Purpose This study aims to investigate the association between board diversity and systematic risk. The theoretical framework used in this study is based on agency and resource dependency theories.Design/methodology/approach Using a panel data set of 788 firms listed in the Morgan Stanley Capital International (MSCI) Emerging Markets index from 2015 to 2020, the authors apply Panel-Corrected Standard Error estimation method to test the three proposed hypotheses and the two-stage least squares method is adopted for the endogenous test.Findings The results suggest that board-specific skills diversity (BSSD) and board independence (BIND) have a negative impact on systematic risk. On the other hand, board gender diversity does not affect systematic risk. The findings reinforce the relevance of board diversity for reducing systematic risk and offer valuable insights for policymakers and investors, suggesting that the presence of directors with specific skills and independent directors could reduce firms’ systematic risk.Research limitations/implications The study extends the scope of agency and resource dependency theories by suggesting that the BSSD and BIND reduce agency costs and bring critical resources to the firm’s survival.Practical implications The findings support policymakers and managers in reducing systematic risk. In addition, the results demonstrate the importance of policies that encourage board diversity and BIND.Social implications The study demonstrates how companies can reduce systematic risk through board diversity and BIND.Originality/value To the best of our knowledge, this is the first study to investigate the association between board diversity and systematic risk only in emerging markets.

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Firm risk associated with environmental and corporate social disclosure: The moderating role of board gender diversity

Ali,

Shah

2024

J Corp Accounting Finance

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This study examines the relationship among corporate social and environmental disclosures, firm risk, and board gender diversity. This paper offers fresh insights into the relationship between corporate social and environmental disclosures and gender diversity and firm risk., Using panel data of Chinese nonfinancial A‐share‐listed companies from 2008 to 2020, we discover that the correlation between gender diversity on the board and corporate social and environmental disclosures has a significant negative influence on firm risk. The findings also revealed that the impact of gender diversity and corporate social and environmental disclosures is more pronounced to mitigate firm risk in nonstate‐owned enterprises than in state‐owned enterprises. For robustness, we used the generalized method of moments to control for reverse causality and endogenous variables' existence; the findings are similar to the main results. The study contributes to the literature by offering a contingency approach to examine the relationship between corporate social and environmental disclosures and firm risk and sheds light on the relationship in the context of a developing economy.

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Corporate culture and board gender diversity: Evidence from textual analysis

Cited by 14 publications

References 118 publications

Corporate culture, innovation and board size: recent evidence from machine learning and earnings conference calls

Corporate culture, innovation and board size: recent evidence from machine learning and earnings conference calls

Board diversity and systematic risk: evidence from emerging markets

Firm risk associated with environmental and corporate social disclosure: The moderating role of board gender diversity

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