Does board gender diversity affect firm performance? Empirical evidence from Standard &amp; Poor’s 500 Information Technology Sector

Simionescu, Liliana Nicoleta; Gherghina, Ştefan Cristian; Tawil, Hiba; Sheikha, Ziad

doi:10.1186/s40854-021-00265-x

Cited by 66 publications

(65 citation statements)

References 95 publications

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“…This statement is in line with the research by Badru, Ahmad-Zaluki and Wan-Hussin (2018), implying that the participation of women on boards has an essential influence in board involvement in a company's strategic decisions at the time of the IPO. Similarly, the studies conducted by Khidmat, Khan, and Ullah (2020), Mohsni and Shata (2021), and Simionescu et al (2021) examined that according to resource dependence theory, increasing board diversity improves performance. Based on these theoretical arguments, the question of whether women on board of directors improves company performance becomes clear.…”

Section: Corporate Governance Capital Structure and Moderating Effect...mentioning

confidence: 99%

“…Due of the diverse viewpoints, knowledge, and networks afforded by a gender-mixed board, an all-male board may make different strategic decisions (Yang, Riepe, Moser, Pull, & Terjesen, 2019). Furthermore, increased board diversity increases performance according to resource dependency theory, and investors see gender diversity as a means to boost board oversight efficacy (Simionescu, Gherghina, Tawil & Sheikha, 2021).…”

Section: Theoretical Background Of Corporate Governance Capital Struc...mentioning

confidence: 99%

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Corporate Governance, Capital Structure and Moderating Effect of Women on Board of Directors in Malaysia's Energy Firm

Yau¹

2022

URAF

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It is undeniable that corporate governance is an important element towards the capital structure across industries as it affects the financial decision which drives the companies’ reputation and revenue. However, the big question is what drives the relationship of corporate governance and capital structure within the industry. As we move into the twenty-first century, diversity and inclusion has been discussed globally. This shift can differentiate the board decision on financial strategy in terms of capital structure. Hence, the motivation behind this research is to investigate the moderating role of women on board towards the relationship of corporate governance and capital structure. Data is collected from annual report of 24 listed energy firms in Bursa Malaysia over the period of 2015 to 2019. As a result, to determine the research objectives, this study employs descriptive statistical analysis, correlation coefficient, and random effects regression models. Moreover, the Generalized Method of Moments (GMM) estimate is used for robustness, and the results obtained differed from the random effect models. According to the findings of this study, board size and the proportion of women on boards of directors have a negative and substantial link with capital structure in terms of leverage level. Meanwhile, there is a positive and significant association between CEO duality and firm leverage, but no relationship exists between board independence and leverage. Additionally, when there is a large proportion of female directors on the board, the influence of board size on the firm's leverage level is beneficial.

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Section: Corporate Governance Capital Structure and Moderating Effect...mentioning

confidence: 99%

Section: Theoretical Background Of Corporate Governance Capital Struc...mentioning

confidence: 99%

Corporate Governance, Capital Structure and Moderating Effect of Women on Board of Directors in Malaysia's Energy Firm

Yau¹

2022

URAF

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“…Besides that, in a survey performed by Simionescu et al (2021) on the consequences of board gender diversity on businesses performance, using a sample of 500 companies from the tech industry, the consequences conferring to OLS produce a positive consequence, but conferring to a random and fixed effect on the ROA, the result is non-significant in businesses performance. Therefore, based on this argument our hypothesis is: H3: There is an insignificant association between male gender and bank assets.…”

Section: Literature Review and Hypothesismentioning

confidence: 99%

The Impact of Corporate Governance and Its Consequences on Protecting the Bank’s Assets: Empirical Evidence From Kosovo Banks

Durguti¹,

Gashi²

2022

JLIA

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This study aims to analyze the relationships between corporate governance instruments on the wealth of financial intermediaries in wide-ranging. The data employed in this study are secondary data from nine (9) commercial banks and covered the years 2013-2020. The approach used in data processing is a 2SLS estimation and multilevel mixed-effects for the dependent variable natural logarithm of total assets. The results provided by the econometric analysis show that board size, sovereign committees, Net Interest Margin (NIM), Non-Performing Loans (NPL"s), and equity to liabilities have an important impact on the protection of the assets of financial institutions. While surprising results have been generated in the composition of the board structure in terms of gender diversity, they have turned out to be insignificant. The originality and value of this study lie in the approach of including the characteristics of the board, as well as the combination of some financial indicators different from previous studies, which makes more comprehensive the study of the impact of board composition on increasing the wealth of banks.

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“…This is explained by the time taken to decide on a more diverse board of directors. The diversity of board independence creates additional costs for the company, and improving the performance may not be sufficient to offset these costs (Simionescu et al, 2021).…”

Section: Correlation Testmentioning

confidence: 99%

“…Therefore, females cannot benefit from paying close attention to their aptitudes and abilities since they are believed to be inexperienced in performing the work of ordinary men. Even though female and male directors have the same personal skill level, it is claimed that the appointment of female managers does not affect the company's performance (Simionescu et al, 2021).…”

Section: Female Board Independency (Fbi) and Tobin's Qmentioning

confidence: 99%

Female Board Independency in Corporate Governance and Firm Performance Students

Septiana

Robin

Yulfiswandi

2022

j. Organisasi dan manaj.

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Purpose – This research examines female board independence and influence on company performance. The concept of female leaders in work should be discussed since gender inequality assumes that they are considered not socially accepted, have a non-business background, and are appointed due to nepotism. Methodology – The research uses a quantitative approach - research data from companies listed on the Indonesia Stock Exchange in the KOMPAS100 index from August 2021 to January 2022. The data was collected from the company’s financial reports from 2014 to 2020. Findings – It was found that both Tobin’s Q and ROA were significantly negative for female board independency. It reduces the effectiveness of a company’s profitability. Females are considered incompetent since they were appointed for family ties and not based on skills or qualifications. The robustness test reveals that the female board independence dummy test with Tobin’s Q and ROA is considerably negative. Furthermore, female board members do not affect the company’s success or ability to persuade investors. Originality – Females are discouraged from serving as independent members to avoid harmful performance impacts. Therefore, the idea of considering them as members of the board of independence should be discouraged, as it will affect the opinions of investors.

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Does board gender diversity affect firm performance? Empirical evidence from Standard & Poor’s 500 Information Technology Sector

Cited by 66 publications

References 95 publications

Corporate Governance, Capital Structure and Moderating Effect of Women on Board of Directors in Malaysia's Energy Firm

Corporate Governance, Capital Structure and Moderating Effect of Women on Board of Directors in Malaysia's Energy Firm

The Impact of Corporate Governance and Its Consequences on Protecting the Bank’s Assets: Empirical Evidence From Kosovo Banks

Female Board Independency in Corporate Governance and Firm Performance Students

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