The Impact of Board Diversity on Boards' Monitoring Intensity and Firm Performance: Evidence from the Istanbul Stock Exchange

Ararat, Melsa; Aksu, Mine Hatice; Çetin, Ayşe Tansel

doi:10.2139/ssrn.1572283

Cited by 99 publications

(129 citation statements)

References 29 publications

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“…An increasing number of studies have investigated the impact of gender diversity (for example, Carter et al, 2003;Campbell & Mínguez-Vera, 2008;Adams & Ferreira, 2009;Dang et al, 2013) and nationality on firm performance (for example, Randøy, Thomsen, & Oxelheim, 2006;Ararat et al, 2010). However, there is still sparse empirical evidence on the relationship between board diversity and the performance of banks (for example, Pathan & Faff, 2013).…”

Section: Literature Reviewmentioning

confidence: 99%

“…First, a larger number of qualified members will be available on the board (Randøy et al, 2006). Second, foreign directors will sustain diverse opinions and perspectives in decision-making processes due to their different backgrounds and experience (Ararat et al, 2010). Third, foreign directors who come from countries with stronger shareholder rights may represent different notions about the role of the board of directors (Ararat et al, 2010).…”

Section: Board Diversitymentioning

confidence: 99%

“…Second, foreign directors will sustain diverse opinions and perspectives in decision-making processes due to their different backgrounds and experience (Ararat et al, 2010). Third, foreign directors who come from countries with stronger shareholder rights may represent different notions about the role of the board of directors (Ararat et al, 2010). Fourth, foreign directors may promote more effective global relationships and increase www.ccsenet.org/ijbm International Journal of Business and Management Vol.…”

Section: Board Diversitymentioning

confidence: 99%

“…A number of control variables are included in the model: the logarithm of the total number of directors, BSIZE (for example, de Andrés & Vallelado, 2008); the percentage of independent directors to the total number of directors on the board, BINDP (for example, Ararat et al, 2010), the logarithm of total assets of the bank, SIZE (for example, El Mehdi, 2007). The means of the ROA and ROE of banks are compared for banks that have at least one woman on the board and those without woman directors between the years 2008 and 2012.…”

Section: Datamentioning

confidence: 99%

“…Hence, there is very little evidence concerning the effect of gender diversity on the performance of banks (for example, Pathan & Faff, 2013). In addition, to the best of the author's knowledge, there are only a few studies that examine the association between foreign directors and financial performance (for example, Ararat, Aksu, & Tansel Cetin, 2010;Ujunwa et al, 2012).…”

Section: Introductionmentioning

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: Literature Reviewmentioning

confidence: 99%

Section: Board Diversitymentioning

confidence: 99%

Section: Board Diversitymentioning

confidence: 99%

Section: Datamentioning

confidence: 99%

Section: Introductionmentioning

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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Academic directors in board and corporate expropriation: Evidence from China

et al. 2021

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Previous studies have recognized that the presence of academic directors on the board leads to better corporate governance and accounting quality. However, studies have yet to establish the effectiveness of academic directors in mitigating corporate expropriation in emerging markets. The purpose of this study is to investigate the effect of academic directors on corporate expropriation in Chinese listed firms. It is observed that the presence of the academic director in the board mitigates earnings management and abnormal investments and enhances the dividend payments. Additionally, we find that the critical mass of academic directors curbs the expropriator managerial behavior in Chinese listed firms.

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How board diversity and ownership structure shape sustainable corporate performance

Khan

Baker

2022

Manage Decis Econ

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This study investigates how demographic board diversity and ownership structure shape Turkish firms' sustainable corporate performance (SCP) between 2013 and 2019. We use a panel dataset of 67 Borsa Istanbul (BIST) 100 indexed non‐financial and non‐utility firms. Based on logit and probit regression estimations, our empirical findings confirm that board diversity factors, including gender, nationality, experience, educational level, and tenure, are statistically significant and positively related to SCP. Contrary to expectations, ownership concentration has a significantly positive association with SCP. This study contributes insights about Turkish firms' board diversity that have practical implications for companies, regulators, and policymakers.

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The Impact of Board Diversity on Boards' Monitoring Intensity and Firm Performance: Evidence from the Istanbul Stock Exchange

Cited by 99 publications

References 29 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

Academic directors in board and corporate expropriation: Evidence from China

How board diversity and ownership structure shape sustainable corporate performance

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