The effect of say on pay on CEO compensation and spill-over effect on corporate cash holdings: Evidence from Australia

Atif, Muhammad; Huang, Allen; Liu, Benjamin

doi:10.1016/j.pacfin.2019.01.001

Cited by 21 publications

(14 citation statements)

References 61 publications

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“…Second, we implement the PSM estimator in two steps (e.g., Atif, Huang, & Liu, ; Lennox, Lisowsky, & Pittman, ; Rosenbaum & Rubin, ) to check whether changes in cash holdings occur as a result of women presence on the board. In the first step, we use a dummy variable ( w_dummy ) that equals 1 when one or more female directors are on the board and 0 otherwise.…”

Section: Resultsmentioning

confidence: 99%

Does board gender diversity affect corporate cash holdings?

Atif

Liu

Huang

2019

Business Fin & Account

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109

105

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This paper examines whether board gender diversity affects corporate cash holdings using S&P 1500 index firms in the US for the period 2006-2015. We document a significantly negative relationship between board gender diversity and cash holdings. We also find a strong negative effect of female independent directors consistent with monitoring function. Moreover, in accordance with the critical mass theory, we find a negative effect of female directors' presence and voice on cash holdings. Our findings are robust to alternative econometric specifications, alternative measures of cash holdings and corporate governance, difference-in-differences, propensity score matching, and two-stage least squares. This study offers useful insights into the current global debate on gender diversity and its implications for firms. K E Y W O R D Scash holdings, corporate governance, gender diversity

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Section: Resultsmentioning

confidence: 99%

Does board gender diversity affect corporate cash holdings?

Atif

Liu

Huang

2019

Business Fin & Account

Self Cite

109

105

View full text Add to dashboard Cite

show abstract

“…First, we use PSM (e.g., Rosenbaum and Rubin, 1983; Lennox et al ., 2011; Atif et al ., 2019b) to test the effect of board gender diversity on the dependent variable (CEO pay deviation). We use the dummy variable ( WDUMMY ) to assign firm‐years with women directors to the treatment group and those without to the control group.…”

Section: Resultsmentioning

confidence: 99%

Boardroom gender diversity and CEO pay deviation: Australian evidence

Ahmed

Atif

Gyapong

2020

Accounting & Finance

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We study whether boardroom gender diversity affects CEO pay. Specifically, we investigate the association between boardroom gender diversity and CEO pay deviation from the optimal level of CEO pay based on firm characteristics and market performance. Using a sample of 2,288 firm-year observations for the period 2006-2014, we find that boardroom gender diversity is negatively associated with CEO pay deviation, suggesting that firms with gender-diverse boards are cautious about the consequences of CEO pay deviation (under/ overpayment), and thus likely to bridge the gap between CEO actual pay and expected pay. These findings provide important insights to the global discussion on executive compensation. Our findings are robust to alternative variable specifications, propensity score matching, difference-in-differences estimations, and generalised method of moments.

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“…Second, we use dynamic panel estimation, which accounts for unobserved heterogeneity, simultaneity, and the dynamic relation between the CEI and past innovation (Wintoki, Linck, & Netter, 2012;Abdallah, Goergen, & O'Sullivan, 2015;Atif, Huang, & Liu, 2019). The twostep 'system GMM' (Arellano & Bover, 1995;Blundell & Bond, 1998) uses first-differenced variables as instruments for the equations in levels.…”

Section: Dynamic Panel Data Estimationmentioning

confidence: 99%

Do LGBT Workplace Diversity Policies Create Value for Firms?

et al. 2019

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We show that U.S. anti-discriminatory laws prohibiting discrimination in the workplace based on sexual orientation and gender identity (i.e. lesbian, gay, bisexual, and transgender (LGBT) identities) spur innovation, which ultimately leads to higher firm performance. We use the Human Rights Campaign's Corporate Equality Index (CEI) of 398 (1,592 firm-year observations) U.S. firms between 2011 and 2014, and find a significantly positive relationship between CEI and firm innovation. We also find that an interacting effect of CEI and firm innovation leads to higher firm performance. We use our understanding of Rawls' Theory of Justice and stakeholder theory to show that firms with workplace diversity policies are likely to be more innovative and perform better than those without such policies. Our results are robust to endogeneity, reverse causality and simultaneity issues. Our results will trigger debate in similar markets around the globe on the economic benefits of LGBT workplace diversity policies for firms.

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The effect of say on pay on CEO compensation and spill-over effect on corporate cash holdings: Evidence from Australia

Cited by 21 publications

References 61 publications

Does board gender diversity affect corporate cash holdings?

Does board gender diversity affect corporate cash holdings?

Boardroom gender diversity and CEO pay deviation: Australian evidence

Do LGBT Workplace Diversity Policies Create Value for Firms?

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