Diverse boards: Why do firms get foreign nationals on their boards?

Estélyi, Kristína Sághy; Nisar, Tahir M.

doi:10.1016/j.jcorpfin.2016.02.006

Cited by 170 publications

(177 citation statements)

References 51 publications

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“…In particular, it has been suggested that TBD (gender and ethnic diversity) can perform a vital role in enhancing board effectiveness by increasing board independence from management and also by bringing diverse ideas, perspectives, knowledge and experience to the board (Buse et al, 2016;Carter et al, 2003;Das & Dey, 2016;Estelyi & Nisar, 2016;Loukil & Yousfi, 2015).…”

Section: Charity Tbd and Csmentioning

confidence: 99%

“…Further, and from legitimisation perspective, board diversity can enhance organisation's reputation/image by increasing public accountability and confidence (Loukil & Yousfi, 2015;Ntim & Soobaroyen, 2013;Sila et al, 2016;Terjesen & Sealy, 2016). In contrast, TBD can increase managers' power and influence over board decisions by appointing a few women and ethnic minorities mainly for symbolic reasons (Estelyi & Nisar, 2016;Gyapong et al, 2016). In this case, charities with a token gender/ethnic representation may need to use more debt in order to reduce opportunistic behaviour of managers that may arise from potential poor managerial monitoring.…”

Section: Charity Tbd and Csmentioning

confidence: 99%

“…However, prior studies suggest that TBD (gender and ethnic diversity) impacts positively on FP (e.g., Borghesi et al, 2016;Carter et al, 2003;Delis et al, 2016;Estelyi & Nisar, 2016;Gyapong et al, 2016;Ntim, 2015;Terjesen et al, 2015), voluntary CG disclosure (AlBassam et al, 2016;Elmagrhi et al, 2016;Abdulrahman et al, 2017;Elamer et al, 2017), audit quality (Gul et al, 2008), board monitoring (Triana et al, 2013), board meetings (Adams & Ferreira, 2009), dividend payout (Byoun et al, 2013), risk disclosure and social responsibility (Barako & Brown, 2008;Brammer et al, 2007;Ntim & Soobaroyen, 2013;Haque & Ntim, 2017), but negatively on executive pay (Gregory-Smith et al 2014;Newton, 2015;Ntim et al, 2015Perryman et al, 2016) and earnings management (Elghuweel et al, 2017). Observably, none of these studies relate to the charity sector and therefore, highlighting the lack of evidence.…”

Section: Charity Tbd and Csmentioning

confidence: 99%

“…TBD, for example, may enhance charity FP by providing better linkages with the external environment (Delis et al, 2016;Pfeffer & Salancik, 1978). However, TBD may increase conflict among board members (Estelyi & Nisar, 2016;Jackson et al, 2003) and that can impact negatively on the ability of boards to make optimal decisions regarding CS and thus charity's FP.…”

Section: The Moderating Effect Of Tbd and Cg Quality On The Cs-fp Nexusmentioning

confidence: 99%

“…Indeed, recent global debate and public policy, especially in the EU, UK and Scandinavian countries has sought to affirmatively increase diversity in corporate boards. It is argued that board gender and ethnic diversity can enhance managerial monitoring and board independence by bringing diverse ideas, perspectives and knowledge into board decision-making (Adams & Ferreira, 2009;Carter et al, 2003Carter et al, , 2010Delis et al, 2016;Elmagrhi et al, 2016;Estelyi & Nisar, 2016;Gyapong et al, 2016;Loukil & Yousfi, 2015;Triana et al, 2013). The increased monitoring and independence often associated with diverse boards may enhance legitimacy and trustworthiness of the board, and consequently encourage stakeholders to provide support to charities, including finance (Ntim & Soobaroyen, 2013;Perrault, 2015;Terjesen & Sealy, 2016).…”

Section: Introductionmentioning

confidence: 99%

See 4 more Smart Citations

Trustee board diversity, governance mechanisms, capital structure and performance in UK charities

Elmagrhi

Ntim

Malagila

et al. 2018

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Purpose: We investigate the association among trustee board diversity (TBD), corporate governance (CG), capital structure (CS) and financial performance (FP) using a sample of UK charities. Specifically, we investigate the effect of TBD on CS, and ascertain whether CG quality moderates the TBD-CS nexus.Additionally, we examine the impact of CS on FP, and ascertain whether the CS-FP nexus is also moderated by TBD and CG quality.Design/methodology/approach: We employ a number of multivariate regression techniques, including ordinary least squares, fixed-effects, lagged-effects and two-stage least squares to rigorously analyse the data and test the hypotheses.Findings: First, we find that trustee board gender diversity has a negative effect on CS, but this relationship holds only up to the point of having three women trustees. We find similar, but relatively weak results for the presence of Black, Asian and Minority Ethnic trustees. Second, we find that the TBD-CS nexus depends on the quality of CG with the relationship being stronger in charities with higher frequency of meetings, independent CG committee, and larger trustee and audit firm size. Third, we find that CS structure has a positive effect on FP, but this is moderated by TBD and CG quality. Our evidence is robust to different econometric models that adjust for alternative measures and endogeneities. We interpret our findings within the explanations of a theoretical perspective that captures insights from different CG and CS theories. Originality/value: Existing studies on TBD, CG, CS and FP in charities are rare. Our study distinctively attempts to address this empirical lacuna within the extant literature by providing four new insights with specific focus on UK charities. First, we provide new evidence on the relationship between TBD and CS.Second, we offer new evidence on the moderating effect of CG on the TBD-CS nexus. Third, we provide new evidence on the effect of CS on FP. Finally, we offer new evidence on the moderating effect of TBD and CG on the CS-FP nexus.

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Section: Charity Tbd and Csmentioning

confidence: 99%

Section: Charity Tbd and Csmentioning

confidence: 99%

Section: Charity Tbd and Csmentioning

confidence: 99%

Section: The Moderating Effect Of Tbd and Cg Quality On The Cs-fp Nexusmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

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Trustee board diversity, governance mechanisms, capital structure and performance in UK charities

Elmagrhi

Ntim

Malagila

et al. 2018

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CEO hubris and corporate carbon footprint: The role of gender diversity

Kwabi,

Fulgence,

Adamolekun

2024

Bus Strat Env

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This paper investigates the effect of an overconfident CEO on firm greenhouse gas emissions. Using panel data of 160,115 firm‐year observations from 41 countries for 2000–2021, we find a negative relationship between CEO overconfidence and greenhouse gas emissions. Additionally, drawing on the theories of gender socialisation and diversity, we find that great representation of females on the board further compels overconfident CEOs to reduce firm carbon emissions. Our findings are robust to varying estimation techniques and identification strategies. These findings offer important insights to green investors, corporate boards, managers and policymakers on the role of overconfident CEOs and female leadership in the carbon abatement efforts of public companies.

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The search for alignment of board gender diversity, the adoption of environmental management systems, and the association with firm performance in Asian firms

Rehman

Orij

Khan

2020

Corp Soc Responsibility Env

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This study examines how board gender diversity can address the challenges to adopt environment management systems (EMS) to improve firm performance. Firstly, drawing on gender socialization and diversity theories, higher board gender diversity motivates firms to adopt EMS. Empirical evidence shows that firms with gender diverse boards are greener. Secondly, the study investigates the maxim that green pays to be green. The empirical findings highlight a positive and statistically significant but economically modest link between EMS and firm financial performance. However, the inclusion of board gender diversity as moderator significantly improves the relationship between EMS and firm performance. In addition, CEO gender is linked to better performance only in firms with low female board diversity. The findings strongly recommend higher board gender diversity as a mechanism to address the challenges of EMS and firm performance simultaneously. The findings are robust to controlling for propensity score matching technique and are different in different approaches.

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Diverse boards: Why do firms get foreign nationals on their boards?

Cited by 170 publications

References 51 publications

Trustee board diversity, governance mechanisms, capital structure and performance in UK charities

Trustee board diversity, governance mechanisms, capital structure and performance in UK charities

CEO hubris and corporate carbon footprint: The role of gender diversity

The search for alignment of board gender diversity, the adoption of environmental management systems, and the association with firm performance in Asian firms

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