Do women in top management affect firm performance? Evidence from Indonesia

Darmadi, Salim

doi:10.1108/cg-12-2010-0096

Cited by 151 publications

(158 citation statements)

References 72 publications

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“…This finding is compatible with prior studies (Arslan, Karan, & Ekşi, 2010;Adams & Mehran, 2012;Darmadi, 2013). Larger boards may develop firm performance by increasing the effectiveness of the decision-making processes through the diversified experience and know-how of various members (Arslan et al, 2010).…”

Section: Panel Data Analysissupporting

confidence: 82%

“…Previous literature regarding the relationship between gender diversity and firm performance is inconclusive. Some of the studies found a positive relationship (for example, Carter et al, 2003;Liu et al, 2013), some found a negative relationship (for example, Darmadi, 2013), and others no relationship at all (for example, Rose, 2003;Francoeur et al, 2008;Gallego-Álvarez, García-Sánchez, & Rodríguez-Dominguez, 2010;Dang et al, 2013). The mixed results may be caused by several factors, such as the use of different methodology, divergent and small samples, short-term observation, industry coverage, and different control variables, etc.…”

Section: Panel Data Analysismentioning

confidence: 99%

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The Effect of Board Diversity on the Performance of Banks: Evidence from Turkey

Kılıç¹

2015

IJBM

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This study has primary two aims. The first is to determine the characteristics of boards of directors in the Turkish banking industry and the second is to investigate the effect of board diversity on performance of the banks. The analyses in this study are built on the banking industry of Turkey in the period from 2008 to 2012. The impact of the board diversity, as measured by the percentage of women and foreign directors on the board and the Blau index, on financial performance is investigated by conducting panel data analysis. The findings of the study provide evidence of a negative relationship between board diversity and financial performance. Hence, the findings do not support the economic case for board diversity, which implies that diverse directors will increase the financial performance of the banks. This study provides additional evidence to the sparse literature regarding the association between board diversity and financial performance in an emerging market context. Furthermore, most prior studies regarding the relationship between gender diversity and performance have excluded financial firms from their samples. In addition, there are few studies that examine the impact of foreign directors on the performance of banks.

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Section: Panel Data Analysissupporting

confidence: 82%

Section: Panel Data Analysismentioning

confidence: 99%

The Effect of Board Diversity on the Performance of Banks: Evidence from Turkey

Kılıç¹

2015

IJBM

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“…In some countries, such as those within Southeast Asia, listed organizations are much more likely to be small, family-controlled organizations compared to other parts of the globe (Claessens, Djankov, & Xu, 2000). Women are much more likely to be appointed to board positions in these family-controlled organizations (Darmadi, 2013). Appointments based on family ties compared to those made in a competitive context may have different impacts on organizational outcomes.…”

Section: Limitations and Opportunities For Future Researchmentioning

confidence: 99%

Trickle‐down effect: The impact of female board members on executive gender diversity

Gould

Kulik

Sardeshmukh

2018

Human Resource Management

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Female representation at senior organizational levels lags well behind male representation. We investigate whether there is a positive nonlinear relationship between female board representation and female executive representation: the trickle‐down effect. We investigated 1,387 organizations listed on the Australian Securities Exchange between 2003 and 2012 and found the hypothesized nonlinear trickle‐down effect operating between board and executive levels. The trickle‐down effect was strongest after 1 year but still significant after 5 years. We investigated two potential moderators of the effect: organization size and gender diversity recommendations. There was no moderating effect of organization size, but contrary to expectations, gender diversity recommendations slowed the trickle‐down effect. Our findings suggest that organizations can address the paucity of women at senior organizational levels by starting at the top. Specifically, organizations making multiple appointments of female board members should expect improvements in female executive representation. However, the signaling and advocacy opportunities afforded by female board appointments may be less potent in the context of external interventions. Our findings contribute to the ongoing policy debate about the value of regulatory interventions to increase female representation at senior organizational levels and highlight the need for research on the unintended consequences of these interventions across national contexts.

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“…Results show that women or minorities on the board positively and significantly affect the firm value. 48 In contrast, Darmadi (2013) performed a similar research in Indonesia to examine the relationship between gender diversity on the management board and the financial performance of listed companies. The author applied a cross-sectional regression analysis and found that the representation of women on management boards negatively and significantly affects firm performance.…”

Section: Differences In Human Capitalmentioning

confidence: 99%

Theoretical and Empirical Research on Gender and Leadership

Lauck¹

2019

HSSL

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The aim of this article is to shed light on theoretical and empirical research on gender and leadership. The article shows that the topics leadership and gender underlie a vivid debate about differences and similarities between female and male leaders in management science. In general, women are still facing substantial barriers and thus are underrepresented in senior leadership positions. From the human capital perspective, women are at least or even better educated than their male counterparts. In fact, women do have less work experience, which can be traced back to childcare and domestic duties. Moreover, research shows that women deal with stress differently and have more problems in establishing informal networks than men. From the leadership effectiveness perspective, female leaders tend to use more participative, democratic, or transformational leadership styles and a higher individualised consideration towards employees than men do. Besides, women are more effective in leadership roles that are congruent with their gender, are more attentive to interpersonal relations, and try to establish an atmosphere of harmony compared to male managers. Furthermore, the article deals with the glass cliff effect that describes that women are more likely to be appointed to senior leadership positions under precarious financial situations than men. Moreover, studies that researched the impact of women in CEO positions affecting the financial performance offer mixed support and are partly contradicting. In addition, this article also discusses Schein's think manager-think male paradigm and Heilman's lack of fit model and offers explanations for stereotyped behaviours against women.

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Do women in top management affect firm performance? Evidence from Indonesia

Abstract: Abstract

Cited by 151 publications

References 72 publications

The Effect of Board Diversity on the Performance of Banks: Evidence from Turkey

The Effect of Board Diversity on the Performance of Banks: Evidence from Turkey

Trickle‐down effect: The impact of female board members on executive gender diversity

Theoretical and Empirical Research on Gender and Leadership

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