Journal ArticleDOI
The Gender and Ethnic Diversity of US Boards and Board Committees and Firm Financial Performance
TLDR
In this paper, the authors examined the business case for the inclusion of women and ethnic minority directors on the board and found no significant relationship between the gender or ethnic diversity of the board, or important board committees, and financial performance for a sample of major US corporations.Abstract:
Manuscript Type: Empirical Research Question/Issue: We examine the business case for the inclusion of women and ethnic minority directors on the board. Specifically, we investigate the relationship between the number of women directors and the number of ethnic minority directors on the board and important board committees and financial performance measured as return on assets and Tobin’s Q. Research Findings/Insights: We do not find a significant relationship between the gender or ethnic diversity of the board, or important board committees, and financial performance for a sample of major US corporations. Our evidence also suggests that the gender and ethnic minority diversity of the board and firm financial performance appear to be endogenous. Theoretical/Academic Implications: Reasonable theoretical arguments drawn from resource dependence theory, human capital theory, agency theory, and social psychology suggest that gender and ethnic diversity may have either a positive, negative, or neutral effect on the financial performance of the firm. Our statistical analysis supports the theoretical position of no effect, either positive or negative. Our results are consistent with a contingency explanation because the effect of the gender and ethnic diversity of the board may be different under different circumstances at different times. Over several companies and time periods, the results could offset to produce no effect. Practitioner/Policy Implications: The results of our analysis do not support the business case for inclusion of women and ethnic minorities on corporate boards. However, we find no evidence of any negative effect either. Our evidence implies that decisions concerning the appointment of women and ethnic minorities to corporate boards should be based on criteria other than future financial performance.read more
Citations
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Journal ArticleDOI
Women on Boards and Firm Financial Performance: A Meta-Analysis
Corinne Post,Kris Byron +1 more
TL;DR: This paper found that female board representation is positively related to accounting returns and that this relationship is more positive in countries with stronger shareholder protections, perhaps because shareholders motivate boards to use the different knowledge, experience, and values that each member brings.
Journal ArticleDOI
Do Women Directors Improve Firm Performance in China
Yu Liu,Zuobao Wei,Feixue Xie +2 more
TL;DR: Wang et al. as discussed by the authors examined the effect of board gender diversity on firm performance in China's listed firms from 1999 to 2011 and found that female executive directors have a stronger positive effect on the firm performance than female independent directors, indicating that the executive effect outweighs the monitoring effect.
Journal ArticleDOI
Board Composition and Corporate Social Responsibility: The Role of Diversity, Gender, Strategy and Decision Making
TL;DR: In this paper, a review of the existing literature on the relationship between corporate governance, in particular board diversity, and both corporate social responsibility (CSR) and Corporate Social Responsibility reporting (CSRR) is presented.
Journal ArticleDOI
Board Diversity and Corporate Social Responsibility
TL;DR: In this paper, the authors examined the impact of board diversity on firms' corporate social responsibility (CSR) performance and found that board diversity is positively associated with CSR performance.
References
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TL;DR: In this article, the authors draw on recent progress in the theory of property rights, agency, and finance to develop a theory of ownership structure for the firm, which casts new light on and has implications for a variety of issues in the professional and popular literature.
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Eugene F. Fama,Kenneth R. French +1 more
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The External Control of Organizations: A Resource Dependence Perspective
TL;DR: The External Control of Organizations as discussed by the authors explores how external constraints affect organizations and provides insights for designing and managing organizations to mitigate these constraints, and it is the fact of the organization's dependence on the environment that makes the external constraint and control of organizational behavior both possible and almost inevitable.
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Men and Women of the Corporation
TL;DR: Men and Women of the Corporation: The Population, Industrial Supply Corporation: Setting Roles And Images as discussed by the authors, Men and women of the corporation: The population, the setting roles and images, the players and the stage.
Journal ArticleDOI
The Modern Industrial Revolution, Exit, and the Failure of Internal Control Systems
TL;DR: The last two decades indicate corporate internal control systems have failed to deal effectively with these changes, especially slow growth and the requirement for exit as mentioned in this paper, which is a major challenge for Western firms and political systems as these forces continue to work their way through the worldwide economy.