Does Board Ethnic Diversity Impact Board Monitoring Outcomes?

Guest, Paul M.

doi:10.1111/1467-8551.12299

Cited by 92 publications

(84 citation statements)

References 78 publications

(158 reference statements)

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“…The existing literature suggests that diversity of the board of directors and its committees are considered as one of the most effective ways to enhance corporate governance (Carter et al , 2010; Cheong and Sinnakkannu, 2014; Scholtz and Kieviet, 2018). In the aftermath of the global financial crisis of 2008, there is an increase in calls for diversity on corporate boards because it is claimed that the lack of board diversity may be partly to blame for the crisis (Anderson et al , 2011; Beattie et al , 2012; Guest, 2019). Thus, diversity on corporate boards has received significant attentions from regulators, media and academics (Bernile et al , 2018).…”

Section: Introductionmentioning

confidence: 99%

Gender, ethnicity and stock liquidity: evidence from South Africa

Nguyen

Muniandy

2020

Accounting & Finance

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This paper examines the impact of the gender and ethnic composition of corporate boards (board of directors and audit committee) on stock liquidity in the context of South Africa. More specifically, we focus on the interaction effects of gender diversity and ethnic diversity on stock liquidity. Using a sample of listed South African firms for the period 2009-2013, we find that firms with more female or black directors on corporate boards are associated with a higher level of stock liquidity. However, the interaction effect indicates that the positive impact of ethnic diversity on stock liquidity is attenuated with the greater presence of gender diversity. These findings are explained through board effectiveness and corporate information flows.

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Section: Introductionmentioning

confidence: 99%

Gender, ethnicity and stock liquidity: evidence from South Africa

Nguyen

Muniandy

2020

Accounting & Finance

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“…The ineffectiveness resulting from larger board are attributed to communication barrier when there are too many people involved in the decision-making process therefore, Apriliyanti and Randøy (2019) suggested that the number of BoD should be limited to ten (Apriliyanti and Randøy, 2019). Guest (2019) found out that smaller boards produce stringer returns, have stronger oversight, always more favorable (Guest, 2019). Australian Institute of Company Directors indicated that large listed companies should have 8 to 12 directors, medium-sized listed companies 6 to 8 directors and small listed companies 4 to 6 directors (Dias, Rodrigues, Craig, and Neves, 2019).…”

Section: Board Size and Bank Financial Stabilitymentioning

confidence: 99%

Corporate Governance and Banking Stability: The Case of Universal Banks in Ghana

Li¹,

Kong²,

Sampson³

et al. 2020

IJEBA

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Purpose: Many countries both develop and developing have issues concerning corporate governance mechanisms, policy and implementations and there needs to be addressed by researchers and academics. Our study seeks to investigate whether bank stability and corporate governance variables have a robust linkage. Methodology: A country sampling of 23 commercial banks' data from 2008-2019 was used for our analysis. We employed a fixed effect estimator and generalized method of moments (GMM) estimation. Findings: Using the fixed-effect approach, we declare that board size, ages of board members, the financial experience of board members, and CEO duality have a strong positive effect on bank stability measures. We find evidence these corporate governance variables help decrease bank's risk/insolvency. Next, we found out that, percentage of female directors, audit committee activities, and directors' educational composition/qualification have reversed rather than encouraged risk in banks. For the generalized method of moments setting, we discovered that board size has a mixed effect on banks' stability. The audit committee has a negative effect on banks' stability for only the tier 1 capital. Educational qualification and directors' compensation is negatively related to the bank's credit risk measure only. The ages' of directors (average age) is strongly related to the bank's stability measures. However, the percentage of independent directors' on the board is linked to Zscore only, while the financial experience of directors and the percentage of female directors are connected to credit risk measure only while CEO duality has a great linkage with both credit risk and tier 1 capital. Practical Implications: The result indicates that banks still need to strengthen their corporate governance structures, which will help them stay strong and solvent. Originality/Value: This is crucial in understanding how governance works at the banks level and how it help in preventing financial instability.

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“…Guest (2019) explores the effects of board ethnic diversity on the monitoring intensity provided by the board of directors. Guest (2019) explores the effects of board ethnic diversity on the monitoring intensity provided by the board of directors.…”

Section: Boards Of Directorsmentioning

confidence: 99%

“…Conyon et al (2019) revisit the effects of compensation consultants on levels of executive pay and payperformance sensitivity. Guest (2019) and Jelic et al (2019) focus on board monitoring, by studying board ethnic diversity and secondary management buyout boards, respectively. Conyon et al (2019) study the effects of compensation consultants in UK firms from the FTSE All-Share Index during the period 2003-2011.…”

Section: Boards Of Directorsmentioning

confidence: 99%

“…The following two papers focus on board monitoring levels. Guest (2019) explores the effects of board ethnic diversity on the monitoring intensity provided by the board of directors. While a number of studies have investigated the effect of board ethnic diversity on firm performance, this is the first empirical study to focus on the effects of such diversity on board monitoring intensity.…”

Section: Boards Of Directorsmentioning

confidence: 99%

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Introduction to Special Issue on Sustainable Corporate Governance

Tonks

Goergen

2019

British J of Management

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Papers in this special issue focus on sustainable corporate governance measures in the aftermath of the financial crisis, and a background environment of increased scepticism over executive pay and corporate behaviour more generally. The authors provide an overview of recent corporate governance reforms, including 'say-on-pay' and gender-pay-gap transparency, and explain how the research papers in the special issue contribute to understanding of corporate governance research and practice in the areas of boards of directors, corporate governance reform and corporate culture and risk-taking.The authors would like to thank the members of the scientific committee for this special issue with the selection and reviewing of the paper submissions: Christian

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Does Board Ethnic Diversity Impact Board Monitoring Outcomes?

Cited by 92 publications

References 78 publications

Gender, ethnicity and stock liquidity: evidence from South Africa

Gender, ethnicity and stock liquidity: evidence from South Africa

Corporate Governance and Banking Stability: The Case of Universal Banks in Ghana

Introduction to Special Issue on Sustainable Corporate Governance

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