Democracy across Gender Diversity and Ethnicity of Middle Eastern SMEs: How Does Performance Differ?

Salloum, Charbel; Jabbour, Georges; Mercier‐Suissa, Catherine

doi:10.1111/jsbm.12336

Cited by 62 publications

(92 citation statements)

References 49 publications

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“…The findings document that on average, the boards of directors in the MENA region firms are dominated by Arab males. This low representation of women, foreigners, and non‐Arab directors on board rooms is in line with evidence coming from most developing countries (e.g., Loukil & Yousfi, ; Mahadeo et al, ; Salloum et al, ).…”

Section: Empirical Analysis and Discussionsupporting

confidence: 85%

“…For example, Gyapong et al (), using data from 245 South African listed firms from 2008 to 2013, find a positive and significant effect of both gender and ethnic diversity on firm value. Salloum et al () support a positive impact of women and ethnic minority group members on Middle Eastern SMEs' financial performance.…”

Section: Hypotheses Developmentmentioning

confidence: 99%

“…In addition, modern women in MENA countries are generally younger, better educated, and have fewer children than previously (Chamlou, ; Hegland, ; Jamali, Safieddine, & Daouk, ; Salloum, George, & Catherine, ; World Bank, ). Moreover, most MENA countries have made significant progress towards improving access to education and health care, as well as enhancing gender equality (Salloum et al, ). According to the United Nations Development Programme (UNDP, ), MENA countries have made the world's fastest progress in human development since 1970.…”

Section: Introductionmentioning

confidence: 99%

“…Recent corporate scandals have directed more attention to CG and EP mechanisms (Hasan, Kobeissi, & Song, 2014;Ullah, Ahmad, Akbar, & Kodwani, 2018a), especially on the importance of board of directors in terms of their roles, effectiveness, composition, and diversity (Carter, D'Souza, Simkins, & Simpson, 2010;Carter, Simkins, & Simpson, 2003;Yamori, Harimaya, & Tomimura, 2017). It is worth noting, however, that the extent to which such contemporary economic, financial, governance, and social (e.g., education) reforms influence a number of key corporate outcomes is rarely investigated (Salloum et al, 2017). Consequently, in this paper, our objective is to extend the existing literature by examining the extent to which contemporary economic, financial, and social reforms that are often aimed at enhancing governance and diversity of major corporations have influenced corporate outcomes in such conservative institutional contexts.…”

Section: Introductionmentioning

confidence: 99%

“…Following, Gyapong et al (), Liu et al (), and Salloum et al (), Equation was re‐estimated using the following dummies; GEN_1 refers to a dummy variable equal to 1 if a firm has one female director on the board, otherwise 0; GEN_2 refers to a dummy variable equal to 1 if a firm has two female directors on the board, otherwise 0; GEN_3 refers to a dummy variable equal to 1 if a firm has three or more female directors on the board, otherwise 0.…”

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confidence: 99%

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Board diversity, corporate governance, corporate performance, and executive pay

2018

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Departing from previous studies, this paper investigates the impact of corporate board diversity on corporate performance and executive pay within the context of Middle East and North African countries. Our sample includes a balanced panel of 600 firm‐year observations, consisting of 100 individual firms drawn from five Middle Eastern countries (Egypt, Jordan, Oman, Saudi Arabia, and United Arab of Emirates) over the 2009–2014 period. The findings are three‐fold. First, board diversity, as measured by director gender and nationality, has a positive effect on corporate financial performance. Second, the relationship between board diversity and corporate performance is stronger in better governed firms than their poorly governed counterparts. Finally, board diversity, as measured by director gender, ethnicity, and nationality, enhances the pay‐for‐performance sensitivity but not the actual executive pay. Our results suggest that decisions about board diversity are not merely influenced by moral values; they arise because of the cost–benefit considerations of what diversity can bring to the firm. The findings are robust to controlling for different alternatives of board diversity measures, corporate governance proxies, corporate outcomes, and types of endogeneities.

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Section: Empirical Analysis and Discussionsupporting

confidence: 85%

Section: Hypotheses Developmentmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

mentioning

confidence: 99%

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Board diversity, corporate governance, corporate performance, and executive pay

2018

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The board gender composition and cost of debt: Empirical evidence from Jordan

Mansour,

Al Zobi,

Saleh

et al. 2023

Bus Strat Dev

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The present research aims to examine the influences of board gender composition on debt costs and its significance to Jordanian creditors: mainly banks, using agency and resource dependence theories. A sample of 113 non‐financial Jordanian firms listed on the Amman Stock Exchange (ASE) from 2010 to 2019 was utilised to explore the impact of board gender on the cost of debt financing through panel regression analysis. To tackle endogeneity concerns, we employ a two‐step system generalised method of moments estimator. The findings discovered that more female directors on firm boards generated economic benefits for non‐financial sectors, which achieved an average 0.75% cut‐off interest rate incurred by lenders compared to the counterparts with fewer female directors. Our findings are still robust to endogeneity concerns. The findings offered valuable insights for academics, shareholders, firms, and regulators. Shareholders are required to provide more pressure on firms to enhance gender equality. Firms should adjust board gender composition via the inclusion of more female directors while regulators should develop guidelines, such as a minimum female quota in promoting more females to the board. The finding generalisability is limited to developing markets with similar settings. This study bridged a vital gap in the governance literature on the nexus between board gender composition and debt costs in Jordanian contexts where no minimum gender quota exists.

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The impact of competition on environmental and social performance in the MENA banking sector

Maside‐Sanfiz,

Iglesias‐Casal,

Mazahreh

et al. 2024

Corp Soc Responsibility Env

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The study analyzes the impact of competition on environmental and social performance. Based on data collected from 82 banks in the banking industry across nine emerging Middle Eastern and North African (MENA) countries from 2015 to 2021, the results indicate that heightened competitive pressure compels banks to enhance their efforts in environmental and social initiatives. Additionally, a positive correlation is observed between greater Board gender diversity (BGD) and improved environmental and social performance. Finally, the results indicate that the negative impact of market power on environmental and social performance is less pronounced in banks with higher BGD, those operating in countries with a better institutional environment, and in state‐owned banks. In contrast, the negative impact is more pronounced in Islamic banks. Our research findings provide insights into the current discourse on strategic decision‐making in the context of sustainability, shedding light on the benefits associated with competition and gender diversity.

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Democracy across Gender Diversity and Ethnicity of Middle Eastern SMEs: How Does Performance Differ?

Cited by 62 publications

References 49 publications

Board diversity, corporate governance, corporate performance, and executive pay

Board diversity, corporate governance, corporate performance, and executive pay

The board gender composition and cost of debt: Empirical evidence from Jordan

The impact of competition on environmental and social performance in the MENA banking sector

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