Gender Diversity and Securities Fraud

Cumming, Douglas J.; Leung, Tak Yan; Rui, Oliver M.

doi:10.5465/amj.2013.0750

Cited by 596 publications

(411 citation statements)

References 93 publications

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“…It is also worth noticing that a wide range of factors influence corporate culture. In addition to the differences in regional culture documented in our study, the gender of CEO or gender diversity of board composition also affects corporate culture in China (Cumming, Leung, & Rui, 2015;McGuinness, Vieito, & Wang, 2017).…”

Section: Robustness Analysismentioning

confidence: 73%

Chairperson collectivism and the compensation gap between managers and employees: Evidence from China

Jiang

Lin

Liu

et al. 2019

Corporate Governance

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Research Question/Issue Few studies have examined the determinants of the compensation gap between managers and workers, despite the significant public attention the issue has received. In particular, few studies have examined how nations' formal systems, such as their institutional and legal arrangements, and informal systems, such as their cultures and traditions, affect the compensation gap. We use the chairperson's native place of origin as a proxy for cultural differences within China and examine how chairperson collectivism affects compensation gaps between managers and average workers. Research Findings/Insights The results show that the compensation gap in a company run by a chairperson from a collectivistic culture tends to be smaller than that of a company run by a chairperson from an individualistic culture. This effect tends to be stronger if a chairperson has a longer tenure and works in a state‐owned enterprise or in a firm located in collectivistic regions. Theoretical/Academic Implications The study provides new insights into the determinants of the compensation gap by incorporating the cultural traits of management. It also broadens the understanding of compensation gaps in emerging markets and shows that cultural differences play an important role in understanding the compensation gap in China. Practitioner/Policy Implications Cultural characteristics should be taken into account when developing compensation contracts. Stakeholders need to consider alternative mechanisms, such as higher pay for performance, to counteract the higher compensation gap due to differences in cultural preferences.

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Section: Robustness Analysismentioning

confidence: 73%

Chairperson collectivism and the compensation gap between managers and employees: Evidence from China

Jiang

Lin

Liu

et al. 2019

Corporate Governance

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“…Li et al, 2017), has become especially important. Despite evidence that women directors help with nonfinancial performance such as CSR and sustainability (Li et al, 2017), and related concerns over the ethical and financial concerns (Carter, D'Souza, Simkins, & Simpson, 2010;Cumming, Leung, & Rui, 2015) arising from a lack of gender diversity, the presence of female directors remains quite low (Lewellyn & Muller-Kahle, 2019), and there is increasing pressure globally to enhance the percentage of female directors on the board. Many countries have chosen to adopt either a coercive, enabling, or laissez-faire approach (Labelle, Francoeur, & Lakhal, 2015).…”

Section: Theoretical Framework and Research Hypothesesmentioning

confidence: 99%

Board gender diversity and corporate environmental performance: The moderating role of family and dual‐class majority ownership structures

2020

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While prior work has investigated the impact of (a) ownership structure and (b) board gender diversity separately on corporate environmental performance, researchers have not studied the potentially important relationship between ownership control and female board diversity in influencing corporate environmental performance jointly. We do so in the context of majority ownership in family‐controlled and dual‐class firms whose motives and influence are theoretically different from that of the firm's minority shareholders. Drawing on resource dependency, socioemotional wealth theory, and secondary agency theory, we hypothesize that majority family owners and dual‐class owners likely choose women directors to help advance their personal preferences for environmental corporate social responsibility. Our empirical tests utilizing 2,755 U.S. firm years over the 2010–2015 show that, as hypothesized, these two majority ownership types interact with board gender diversity to positively influence corporate environmental performance.

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“…Also, women are more diligent than men that help to improve monitoring (Kirsch, 2017). In particular, several papers show that women are more ethical, risk-adverse, more prepared, and long-term oriented than men (Cumming et al, 2015;Franke, Crown, & Spake, 1997;Pan & Sparks, 2012). For example, Pan and Sparks (2012) contend that women directors are firmer than male directors when it comes to implementing moral standards on the board.…”

Section: Theoretical Background and Hypotheses Developmentmentioning

confidence: 99%

“…In this paper, we focus on the effect of women on the remuneration committee as previous studies have shown women are more likely to be effective monitors (Adams & Ferreira, 2009;Carter, Simkins, & Simpson, 2003), more ethical (Cumming, Leung, & Rui, 2015), and more likely to reduce information asymmetry (Abad, Lucas-Pérez, Minguez-Vera, & Yagüe, 2017;Srinidhi, Gul, & Tsui, 2011). In addition, there are presently limited studies on the effect of women on the remuneration committee (Kirsch, 2017;Obermann & Velte, 2018).…”

Section: Introductionmentioning

confidence: 99%

Gender diversity and say‐on‐pay: Evidence from UK remuneration committees

Alkalbani¹,

Cuomo

Mallin

2019

Corporate Governance

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Research question/issue We examine whether the presence of women on the remuneration committee has an influence on say‐on‐pay voting. Research findings/insights Based on panel data from the UK's FTSE 350 firms from 2003 to 2015, we find that firms with women on the remuneration committee reduce shareholders' dissent via say‐on‐pay. However, only firms with a critical mass of more than 30% women on this committee are more likely to have less shareholders' dissent via say‐on‐pay (i.e., the presence of 30% women or less on this committee is not sufficient). Theoretical/academic implications Our results provide empirical evidence that the gender diversity of directors on the remuneration committee plays a significant role in shaping shareholders' dissent via say‐on‐pay in the United Kingdom. Our results also provide empirical support for some of the previous studies that draw on critical mass theory that imply that women are more effective monitors when they make up a critical mass of more than 30%. Practitioner/policy implications Our results could provide regulators with evidence in favor of improving women's representation on UK remuneration committees. In addition, our results could help shareholders and nomination committee members understand the importance of having women on UK remuneration committees, as they are more likely to avoid suboptimal pay and align directors' remuneration packages more closely with shareholders' expectations. Finally, our results could also attract the attention of main stakeholders and the media, especially given their increasing attention both to gender diversity and say‐on‐pay.

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Gender Diversity and Securities Fraud

Cited by 596 publications

References 93 publications

Chairperson collectivism and the compensation gap between managers and employees: Evidence from China

Chairperson collectivism and the compensation gap between managers and employees: Evidence from China

Board gender diversity and corporate environmental performance: The moderating role of family and dual‐class majority ownership structures

Gender diversity and say‐on‐pay: Evidence from UK remuneration committees

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