Do gender differences persist? An examination of gender diversity on firm performance, risk, and executive compensation

Perryman, Alexa A.; Fernando, Guy D.; Tripathy, Arindam

doi:10.1016/j.jbusres.2015.05.013

Cited by 369 publications

(304 citation statements)

References 46 publications

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“…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%

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%

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

Elmagrhi

Ntim

Malagila

et al. 2018

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“…But again, this is not the whole story. Moreover, diversity and gender questions are also increasingly addressed in this domain [100,101]. Regarding social analysis, the following two output types are used as indicators and included in the subsequent analysis: (iii) Employment-As the core social role for companies is to provide work and income, the full-time equivalent (FTE) figure from the corporate LSP reports (usually figure at year end/31.12.)…”

Section: Sustainability Datamentioning

confidence: 99%

How to Achieve Supply Chain Sustainability Efficiently? Taming the Triple Bottom Line Split Business Cycle

Klumpp

2018

Sustainability

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For sustainable supply chains, specific concepts regarding how to efficiently improve sustainability are needed in a global comprehensive triple bottom line (TBL) approach, especially for forwarders as central actors in supply chain design. Such specific advice is provided by reporting empirical DEA Malmquist index findings from seven large European forwarders regarding a TBL sustainability analysis from 2006 to 2016. A major obstacle in improving sustainability consists in the newly discovered fact that with the business cycle, the three TBL areas of economic, ecologic and social objectives for logistics are undergoing different up-and down-ward trends, making it very hard to improve all three simultaneously. Additional factors are identified in the characteristics of size and government influence regarding the sustainability efficiency of forwarders. This has important impacts on supply chain design like e.g., with selection criteria.

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“…(Adams et al 2015). Very recent work finds a positive relationship between board diversity and financial performance (Perryman et al 2016;Reguera-Alvarado et al 2015). In a large-scale international study of 22 000 companies from 91 countries, Noland et al (2016) found a positive association between female share of TMTs and firm performance in data for 2014 but found no effect of board membership or board gender quotas on firm performance.…”

Section: Theoretical Backgroundmentioning

confidence: 98%

“…Examples of positive implications of gender diversity include: improved group decision-making (Erhardt et al 2003), improved managerial task performance (Dezsö and Ross 2012), enhanced legitimacy (Perrault 2015), introduction of new ideas and skills (Reguera-Alvarado et al 2015), more innovative and creative decision-making (Bantel and Jackson 1989), better reflection of customer and stakeholder needs (Konrad et al 2008), deeper and more extensive consideration of issues (Post and Byron 2015), and increased social capital and social responsibility (Bear et al 2010). Specific to the impact of women on teams, they tend to reduce company risk taking and are associated with greater company performance (Perryman et al 2016), despite higher turnover and absenteeism (Campbell and Mínguez-Vera 2008). In addition, those companies that pursue a more gender diverse leadership team and workforce will be tapping into a highly educated and skilled talent pool as, for example, in the United States (US), the greater proportion of college degrees are now earned by females (Catalyst 2004).…”

Section: Theoretical Backgroundmentioning

confidence: 99%

“…Evidence suggests that more diversity pays off through increased creativity (Campbell and Mínguez-Vera 2008;Green et al 2008), openness to change (Green et al 2008), and innovativeness (Bantel and Jackson 1989;Campbell and Mínguez-Vera 2008), as well as enhanced company financial performance or value (Perryman et al 2016;Isidro and Sobral 2015;Reguera-Alvarado et al 2015;Giffi and McNelly 2013;Campbell and Mínguez-Vera 2008). Despite the fact that the general literature contains myriad studies investigating the diversity-performance relationship and there are sector-specific studies for industries such as automotive, we were unable to uncover any peer-reviewed studies covering the diversity-performance relationship in the forest products manufacturing sector.…”

Section: Introductionmentioning

confidence: 99%

See 1 more Smart Citation

Does gender diversity in forest sector companies matter?

et al. 2016

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Abstract:The extant literature concerned with enhancing competitiveness of forest sector companies has focused on phenomena rather than people who would drive those phenomena. Generally, human resource management research is sparse in the forest sector literature, despite well-documented knowledge that companies succeed more because of their people than because of any other factor. This article brings human resource issues to the core conversation in forest sector competitiveness research. Specifically, we focus on the link between gender diversity in top leadership and firm financial performance and suggest pathways to improve workforce diversity. The timing of our study is fortuitous, as the graying workforce in the sector will create space for a new generation of leaders. Our argument is that diversity issues should be more proactively addressed in forest sector workforce recruitment not just because it is the right thing to do, but also because it has an underlying business case. This is an exploratory study, which is a first step in paving the way for future work on diversity management among forest sector companies. Our findings suggest that more gender diverse top management teams are associated with higher financial performance but that the level of gender diversity in boards of directors has no association with financial performance.Key words: diversity, financial performance, forest industry, gender diversity, human resources management, workforce diversity.Résumé : La littérature existante qui porte sur l'amélioration de la compétitivité des entreprises du secteur forestier traite surtout des phénomènes plutôt que des personnes responsables de ces phénomènes. Même en général, la recherche sur la gestion des ressources humaines est peu abondante dans la littérature qui porte sur le secteur forestier, même s'il est bien connu que le succès des entreprises est davantage dû à leur personnel qu'à n'importe quel autre facteur. Cet article place la question des ressources humaines au centre des préoccupations de la recherche sur la compétitivité dans le secteur forestier. Nous avons spécifiquement mis l'accent sur le lien entre la diversité des genres chez la haute direction et la performance financière de l'entreprise et nous suggérons des façons d'améliorer la diversité de la main-d'oeuvre. Notre étude arrive au bon moment étant donné que le vieillissement de la main-d'oeuvre dans le secteur va ouvrir la porte à une nouvelle génération de dirigeants. Nous croyons que la question de la diversité devrait être abordée de façon plus proactive dans le recrutement de la main-d'oeuvre du secteur forestier, non seulement parce que c'est la bonne chose à faire mais aussi parce qu'il y a un enjeu commercial sous-jacent. Il s'agit d'une étude exploratoire qui constitue un premier pas ouvrant la voie au travail à venir sur la gestion de la diversité dans les entreprises du secteur forestier. Nos résultats indiquent que les équipes de dirigeants les plus diversifiées en termes de genres sont associées à une meilleure p...

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Do gender differences persist? An examination of gender diversity on firm performance, risk, and executive compensation

Cited by 369 publications

References 46 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

How to Achieve Supply Chain Sustainability Efficiently? Taming the Triple Bottom Line Split Business Cycle

Does gender diversity in forest sector companies matter?

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