The Nexus among board diversity and bank stability: Implications from gender, nationality and education

Elnahass, Marwa; Alharbi, Rana; Mohamed, Toka S.; McLaren, Josie

doi:10.1016/j.ememar.2023.101071

Cited by 12 publications

(4 citation statements)

References 86 publications

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“…The current paper finds a negative association between the supervisory board's nationality diversity and the performance of the market aspect. This finding follows the prior results of Andrian and Pangestu (2022) and Elnahass et al (2023). A study in Indonesia by Andrian and Pangestu (2022) also finds that the diversity of the supervisory board's nationality harms corporate social responsibility for 102 financial sector companies during the 2018-2020 period.…”

Section: Performance Of Market Aspect Tobin's Qsupporting

confidence: 85%

“…A study in Indonesia by Andrian and Pangestu (2022) also finds that the diversity of the supervisory board's nationality harms corporate social responsibility for 102 financial sector companies during the 2018-2020 period. Hence, Elnahass et al (2023) believe that nationality diversity creates bank stability. Asad et al (2023) examined the association board diversity as measured by gender, age, nationality, education, financial expertise, tenure, and board experience on R&D spending for UK non-financial companies, 2005-2018.…”

Section: Nationality Diversitymentioning

confidence: 99%

“…A study in Indonesia by Andrian and Pangestu (2022) also finds that the diversity of the supervisory board's nationality harms corporate social responsibility for 102 financial sector companies during the 2018-2020 period. Using unique bank companies that use dual banking systems from 14 countries, Elnahass et al (2023) find that nationality diversity lowers financial performance. However, Asad et al (2023) find a positive association between directors' nationality diversity and company propensity to R&D spending on non-financial companies listed on the London Stock Exchange.…”

Section: Performance Of Market Aspect Tobin's Qmentioning

confidence: 99%

“…Previous papers have documented the importance of directors' nationality diversity for company outcomes. Non-local directors are associated with the company performance (Adams and Baker, 2021;Fernández-Temprano and Tejerina-Gaite, 2020;García-Meca et al, 2015), company value (Metwally, 2021), corporate social performance (Harjoto et al, 2019), quality of CSR disclosure (Khan et al, 2019), human proper reporting (Branco et al, 2021), tax avoidance (Alshabibi et al, 2022), firm profitability (Hamid, 2018), R&D spending (Asad et al, 2023), strategic change (Samara and Yousef, 2023), firm stability (Elnahass et al, 2023), investment decision (Mirza et al, 2020), corporate philanthropic behaviour (Kang et al, 2019), corporate sustainability performance (Zaid et al, 2020) and corporate social responsibility (Ibrahim and Hanefah, 2016).…”

Section: Introductionmentioning

confidence: 99%

See 3 more Smart Citations

Director's Nationality Diversity and Company Performance: The Evidence From Emerging Market

Zaitul,

Ilona,

Abd-Mutalib

et al. 2024

EKUITAS (Jurnal Ekonomi dan Keuangan)

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This study describes the diversity of directors' nationality from company attributes: company leverage, growth, size, age, and sub-sector. This study also analyses the association between directors' nationality diversity and the performance of Indonesia's listed companies using two measurements: ROA and ROS (accounting performance) and Stock return and Tobin’s Q (market performance). This study used 3,290 observations in 235 companies (from 2004 to 2017). As a result, the level of director nationality diversity varies based on the company size (large vs. small), company age (old vs. young), company growth (high vs. low), company leverage (high vs. low), company sub-sector (central vs. manufacturing vs. trading & service sub-sector). In addition, the diversity of the supervisory board nationality is negatively related to the ROA and Tobin’s Q and positively associated with stock return. The company breaks the negative effect of supervisory board nationality diversity by reducing the periods foreign directors need to familiarise themselves with newly discovered circumstances, such as culture, systems, and language. The company suggests increasing the supervisory board nationality diversity regarding the stock return as detailed theoretical and practical implications.

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Section: Performance Of Market Aspect Tobin's Qsupporting

confidence: 85%

Section: Nationality Diversitymentioning

confidence: 99%

“…A study in Indonesia by Andrian and Pangestu (2022) also finds that the diversity of the supervisory board's nationality harms corporate social responsibility for 102 financial sector companies during the 2018-2020 period. Using unique bank companies that use dual banking systems from 14 countries, Elnahass et al (2023) find that nationality diversity lowers financial performance. However, Asad et al (2023) find a positive association between directors' nationality diversity and company propensity to R&D spending on non-financial companies listed on the London Stock Exchange.…”

Section: Performance Of Market Aspect Tobin's Qmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

See 2 more Smart Citations

Director's Nationality Diversity and Company Performance: The Evidence From Emerging Market

Zaitul,

Ilona,

Abd-Mutalib

et al. 2024

EKUITAS (Jurnal Ekonomi dan Keuangan)

View full text Add to dashboard Cite

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Empowering Women to Lead Cybersecurity: The Effect of Female Executives on Disclosure Sentiment

Elnahass,

Ahmed,

Trinh

2024

Int. J Fin Econ

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This study investigates the impact of gender diversity (i.e., the presence of female executives on corporate boards) on the sentiment of cybersecurity information disclosure, including its likelihood, magnitude, and tone. We develop a unique dataset providing an extensive view of the development and evolution of cybersecurity‐related disclosure practices among prominent publicly traded US companies over a 19‐year period (2002–2020). We find strong evidence that female executives are more likely to disclose, and they report significantly more cybersecurity‐related information compared to their male counterparts. Additionally, female executives adopt a more conservative, uncertain, and litigious tone in their cybersecurity disclosures than male executives. The results also support the notion of a critical mass of female executives on the board and align with various theories, emphasising the importance of gender diversity in promoting high‐quality cybersecurity disclosure practices within firms. Furthermore, we examine several channels contributing to the heterogeneity of cybersecurity disclosures between female and male executives, and consider the effects of the black swan events (i.e., the financial crisis and the COVID‐19 pandemic).

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Board Gender Diversity and Firm Performance in an Emerging Economy: The Role of Women Directors' Attributes

Pham,

Rizov,

2024

Int. J Fin Econ

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Despite the extensive research on board gender diversity (BGD), questions persist regarding its impact on firm performance and the mechanisms through which it operates, especially in emerging economies. This research enhances our understanding of how the attributes of female directors contribute to firm performance. Using data from large, listed firms in Vietnam over the period 2014–2020, we find a positive effect of BGD on firm performance, with a significant impact when at least two women serve on the board. Notably, our results show that women executive directors exert a stronger positive influence than women independent directors. We also demonstrate the importance of women directors' age, rather than their education level, in shaping firm performance. Our findings are robust across various tests. Overall, this study provides compelling evidence that, in the context of emerging economies, BGD's impact on firm performance is driven by older (more experienced) women executive directors.

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The Nexus among board diversity and bank stability: Implications from gender, nationality and education

Cited by 12 publications

References 86 publications

Director's Nationality Diversity and Company Performance: The Evidence From Emerging Market

Director's Nationality Diversity and Company Performance: The Evidence From Emerging Market

Empowering Women to Lead Cybersecurity: The Effect of Female Executives on Disclosure Sentiment

Board Gender Diversity and Firm Performance in an Emerging Economy: The Role of Women Directors' Attributes

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