The effect of board gender diversity on firm performance: evidence from Turkey

2016 ◽  
Vol 31 (7) ◽  
pp. 434-455 ◽  
Author(s):  
Merve Kılıç ◽  
Cemil Kuzey
Keyword(s):  
Firm Performance ◽  
Financial Performance ◽  
Empirical Studies ◽  
Gender Diversity ◽  
Content Type ◽  
Return On Equity ◽  
Firm Financial Performance ◽  
Board Gender Diversity ◽  
Return On Sales ◽  
The Relationship

Purpose This study aims to include two primary goals. First to determine the board characteristics of listed companies in Turkey and second to investigate the effect of board gender diversity on the performance of these companies. Design/methodology/approach This study uses an instrumental variables regression analysis to investigate the relationship between board gender diversity and firm performance using the data from 2008-2012 of the entities listed on the Borsa Istanbul. Findings The results indicate that the boards of these companies in Turkey are male-dominated. Moreover, this study shows that the inclusion of female directors is positively related to the financial performance of firms, as measured by the return on assets, the return on equity and the return on sales. Originality/value Limited empirical studies have been conducted on the relationship between board gender diversity and firm performance in emerging economies. Therefore, there is still no consensus regarding the link between board gender diversity and firm financial performance based upon the mixed and sometimes contradictory results in prior research. Therefore, this study extends the current literature in the context of Turkey, showing that a female member on the board can enhance the financial performance of a company.

Board gender diversity, board compensation and firm performance. Evidence from Jordan

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Taha Almarayeh
Keyword(s):  
Firm Performance ◽  
Financial Performance ◽  
Least Squares ◽  
Gender Diversity ◽  
Ordinary Least Squares ◽  
Content Type ◽  
Firm Financial Performance ◽  
Board Compensation ◽  
Board Gender Diversity ◽  
The Impact

Purpose This study aims to analyze the relationship between board gender diversity, board compensation and firm financial performance in the developing country, Jordan, whose cultural, economic and institutional context is very different from most previously analyzed countries’ context. Design/methodology/approach Ordinary least squares regression was used to examine the association between board gender diversity, board compensation and firm financial performance in a sample of 510 firm-year observations during the years 2009–2018. Generalized least squares estimation method was used to confirm that the results are robust. Findings The author provides new evidence that board gender diversity does not contribute to firm financial performance. The author also detects that there is a positive relationship between board compensation on firm financial performance. Originality/value This paper examines the under-researched relationship between board gender diversity, board compensation and firm financial performance. In so doing, the author tries to provide new insights into this relationship within the developing context, the case of Jordan that has a different environment from that of advanced markets. To the best of the researcher’s knowledge, this is almost certainly the first research to investigate the impact of board gender diversity and board compensation on firm financial performance in the Jordanian market. This manuscript is expected to be used as a reference by the regulators and policymakers – both in Jordan and other countries with a similar institutional, cultural setting – to provide a deep understanding of the impact of board gender diversity and board compensation on the firm performance.

Intellectual capital in Ugandan service firms as mediator of board governance and firm performance

2014 ◽  
Vol 5 (3) ◽  
pp. 300-340 ◽  
Author(s):  
Stephen Korutaro Nkundabanyanga ◽  
Joseph M. Ntayi ◽  
Augustine Ahiauzu ◽  
Samuel K. Sejjaaka
Keyword(s):  
Firm Performance ◽  
Financial Performance ◽  
Intellectual Capital ◽  
Predictor Variable ◽  
Mediating Effect ◽  
Board Governance ◽  
Content Type ◽  
Firm Financial Performance ◽  
Starting Point ◽  
The Relationship

Purpose – The purpose of this paper is to examine the mediating effect of intellectual capital on the relationship between board governance and perceived firm financial performance. Design/methodology/approach – This study was cross-sectional. Analyses were by SPSS and Analysis of Moment Structure on a sample of 128 firms. Findings – The mediated model provides support for the hypothesis that intellectual capital mediates the relationship between board governance and perceived firm performance. while the direct relationship between board governance and firm financial performance without the mediation effect of intellectual capital was found to be significant, this relationship becomes insignificant when mediation of intellectual capital is allowed. Thus, the entire effect does not only go through the main hypothesised predictor variable (board governance) but majorly also, through intellectual capital. Accordingly, the connection between board governance and firm financial performance is very much weakened by the presence of intellectual capital in the model – confirming that the presence of intellectual capital significantly acts as a conduit in the association between board governance and firm financial performance. Overall, 36 per cent of the variance in perceived firm performance is explained. the error variance being 64 per cent of perceived firm performance itself. Research limitations/implications – The authors surveyed directors or managers of firms and although the influence of common methods variance was minimal, the non-existence of common methods bias could not be guaranteed. Although the constructs have been defined as precisely as possible by drawing upon relevant literature and theory, the measurements used may not perfectly represent all the dimensions. For example board governance concept (used here as a behavioural concept) is very much in its infancy just as intellectual capital is. Similarly the authors have employed perceived firm financial performance as proxy for firm financial performance. The implication is that the constructs used/developed can realistically only be proxies for an underlying latent phenomenon that itself is not fully measureable. Practical implications – In considering the behavioural constructs of the board, a new integrative framework for board effectiveness is much needed as a starting point, followed by examining intellectual capital in firms whose mediating effect should formally be accounted for in the board governance – financial performance equation. Originality/value – Results add to the conceptual improvement in board governance studies and lend considerable support for the behavioural perspective in the study of boards and their firm performance improvement potential. Using qualitative factors for intellectual capital to predict the perceived firm financial performance, this study offers a unique dimension in understanding the causes of poor financial performance. It is always a sign of a maturing discipline (like corporate governance) to examine the role of a third variable in the relationship so as to make meaningful conclusions.

scholarly journals Government institutional support, entrepreneurial orientation, strategic renewal, and firm performance in transitional China

2019 ◽  
Vol 25 (3) ◽  
pp. 433-456 ◽  
Author(s):  
Chengli Shu ◽  
Dirk De Clercq ◽  
Yunyue Zhou ◽  
Cuijuan Liu
Keyword(s):  
Firm Performance ◽  
Financial Performance ◽  
Entrepreneurial Orientation ◽  
Transition Economy ◽  
Institutional Support ◽  
Equation Modeling ◽  
Content Type ◽  
Strategic Renewal ◽  
Firm Financial Performance ◽  
The Relationship

PurposeThe purpose of this paper is to examine how entrepreneurial orientation (EO) and strategic renewal (as a critical dimension of corporate entrepreneurship) might transmit government institutional support and thereby enhance firm performance in a transition economy.Design/methodology/approachMulti-respondent data were collected from 230 Chinese-based firms. The hypotheses were tested with structural equation modeling, in combination with a bias-corrected bootstrap method, to assess the significance of the theorized direct and indirect relationships.FindingsGovernment institutional support enhances EO and strategic renewal individually, yet EO also fully mediates the relationship between government institutional support and strategic renewal. Moreover, strategic renewal fully mediates the relationship between EO and firm financial performance, and it partially mediates the relationship between EO and firm reputation.Originality/valueThis study contributes to entrepreneurship literature by testing an organization-level model of entrepreneurial phenomena in established firms that identifies EO and strategic renewal as two distinct mechanisms through which government institutional support in a transition economy can enhance organizational effectiveness, which entails the firm’s financial performance and reputation. In doing so, this study provides an extended understanding of how EO and strategic renewal might influence a firm’s financial and nonfinancial outcomes in different ways.

scholarly journals Strategic Management and Firm Performance

2019 ◽  
Vol 7 (03) ◽  
Author(s):  
Dr. Sadudin Ibraimi
Keyword(s):  
Firm Performance ◽  
Strategic Management ◽  
Financial Performance ◽  
Empirical Studies ◽  
Business Strategies ◽  
Firm Financial Performance ◽  
And Performance ◽  
In The Beginning ◽  
The Relationship

This paper discusses the relationship between business strategies of firms and their performances. In the beginning the strategic aspects of the concept are presented, then competition and performance and their linkage to strategy is discussed. This is followed by the discussion of several empirical studies on the determinants of firm financial performance. Researches confirm that firms within the same industry differ from one another, and that there seems to be an inertia associated with these differences.

Mediating Effect of Tax Management on the Relationship Between Board of Directors Characteristics and Firm Performance

2020 ◽  
Vol 19 (01) ◽  
pp. 2040022
Author(s):  
Nidal Zaqeeba ◽  
Takiah Mohd Iskandar
Keyword(s):  
Firm Performance ◽  
Financial Performance ◽  
Stock Exchange ◽  
Gender Diversity ◽  
Service Industries ◽  
Mediating Effect ◽  
Tax Management ◽  
Amman Stock Exchange ◽  
Board Gender Diversity ◽  
The Relationship

This study aims at examining the mediating effect of tax management on the relationship between certain board characteristics including independence, gender diversity, and activeness and firm performance. The sample of the study includes 135 companies in the industrial and service industries listed with Amman Stock Exchange in 2008–2017. This study selects purposive samples using the panel data technique. Results indicate that first, tax management mediates the board independence relationship with financial performance. Second, tax management does not mediate the board gender diversity and board activities relationships respectively with financial performance.

Environmental commitment and firm financial performance: a moderated mediation study of environmental collaboration with suppliers and CEO gender

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Thinh Truong Vu ◽  
Wilson V.T. Dang
Keyword(s):  
Firm Performance ◽  
Financial Performance ◽  
Structural Equation ◽  
Equation Modeling ◽  
Content Type ◽  
Environmental Commitment ◽  
Firm Financial Performance ◽  
The Relationship ◽  
Ceo Gender

Purpose Prior studies have found a mixed result on the relationship between environmental commitment and firm performance. To shed a new light on this relationship, this study aims to draw on stakeholder theory, upper echelon theory and gender socialization theory to determine the mediating role of environmental collaboration with suppliers and the moderating role of chief executive officers (CEOs) gender into this relationship. Design/methodology/approach This study conducts a questionnaire survey to collect sample data of 177 CEOs in manufacturing firms in China. Structural equation modeling is used to analyze data and test hypotheses. Findings Empirical results show that environmental commitment has a positive influence on firm financial performance. Furthermore, the results show that environmental collaboration with suppliers mediates the link between environmental commitment and financial performance. In addition, CEO gender has a moderating effect on the relationship between environmental commitment and environmental collaboration with suppliers. Finally, CEO gender also moderates the indirect effect of environmental commitment on financial performance through environmental collaboration with suppliers. Originality/value Findings of this study helps to clarify the mediating and moderating mechanism in the relationship between environmental commitment and firm performance. That is this study helps to clarify the mixed relationship between environmental commitment and firm performance in prior literature. This study also provides new insight and knowledge for business managers to make better decision in dealing with the environmental issue to enhance firm performance.

Corporate governance guidelines compliance and firm financial performance

2016 ◽  
Vol 31 (8/9) ◽  
pp. 891-914 ◽  
Author(s):  
Erick Rading Outa ◽  
Nelson M. Waweru
Keyword(s):  
Corporate Governance ◽  
Life Cycle ◽  
Firm Performance ◽  
Financial Performance ◽  
Firm Value ◽  
Design Methodology ◽  
Content Type ◽  
Firm Financial Performance ◽  
The Impact ◽  
The Relationship

Purpose This paper aims to examine the impact of compliance with corporate governance (CG) guidelines during the period 2002-2014 on firm financial performance and firm value of Kenyan-listed companies. Design/methodology/approach Using panel data of 520-firm year’s observations between 2005 and 2014, the authors test the hypothesis that compliance with CG guidelines issued in 2002 by Capital Markets Authority (CMA) improved firm financial performance and firm value. Findings Compliance with CG Index which is an aggregate of all the CG guidelines is positively and significantly related to firm performance and firm value. Board evaluation is also positively and significantly related to firm performance. The findings suggest that CG guidelines are associated with firm financial performance and firm value. Originality/value The authors provide evidence on the relationship between CG practices and firm financial performance and firm value in Kenya. Second, the authors provide evidence on board evaluation which has not been tested before in a “comply or explain” environment. Finally, they evaluate how CMA 2002 CG guidelines steered firm financial performance and firm value over its life cycle from 2002 to 2014. These results are important to CMA and other CG regulators and boards in their efforts to improve CG practices in the region.

Gender diversity in the Italian boardroom and firm financial performance

2017 ◽  
Vol 40 (1) ◽  
pp. 75-94 ◽  
Author(s):  
Niccolò Gordini ◽  
Elisa Rancati
Keyword(s):  
Financial Performance ◽  
Boards Of Directors ◽  
Panel Data Analysis ◽  
Gender Diversity ◽  
Gender Quotas ◽  
Content Type ◽  
Law System ◽  
Firm Financial Performance ◽  
Board Gender Diversity ◽  
The Right

Purpose This study aims to analyse the relationship between board gender diversity and firm financial performance in Italy, where the recently enforced Law 120/2011 prescribes gender quotas for boards of directors. Design/methodology/approach Panel data analysis was used to examine the gender diversity–firm financial performance relationship in an unbalanced panel of 918 Italian listed companies during the years 2011-2014. Findings Gender diversity, as measured by the percentage of women on a board and by the Blau and the Shannon indices, has a positive and significant effect on Tobin’s Q, while the presence of one or more women on the board per se has an insignificant effect on firm financial performance. Practical implications The results suggest that board gender diversity is not a simple “numbers game”, greater gender diversity may generate economic gains, greater gender diversity does not destroy shareholder value, investors do not penalize companies that increase female representation on their boards and Italian companies should focus their efforts on the right mix of men and women rather than on simply the presence of at least one woman on a board of directors. Originality/value Most articles on this topic use data from countries with a legal system based on common law; this paper analyses Italy, a country with a civil law system. This is almost certainly the first study to examine the effect of board gender diversity on firm financial performance in the Italian market.

scholarly journals Exploring the Interaction Effects of Board Meetings on Information Disclosure and Financial Performance in Public Listed Companies

Economies ◽  
2021 ◽  
Vol 9 (4) ◽  
pp. 139
Author(s):  
Noor Azuddin Yakob ◽  
Norraidah Abu Hasan
Keyword(s):  
Firm Performance ◽  
Financial Performance ◽  
Agency Theory ◽  
Board Of Directors ◽  
Information Disclosure ◽  
Interaction Effects ◽  
Return On Equity ◽  
Firm Financial Performance ◽  
The Board Of Directors ◽  
The Relationship

The board of directors’ role is paramount in businesses because it reflects the organisation’s ability to earn investor confidence and improve financial performance. This paper aims to examine the relationship between environmental and social (ES) information disclosure and firm financial performance and the interaction effects of board meetings on the relationship between ES and firm performance in Malaysian publicly traded firms from 2013 to 2017. This article contributes to the theoretical foundations of the agency theory as it relates to the corporate governance function. The agency theory framework is used to capture the inherent interrelationships between the board of directors and firm performance. The study’s findings indicate that a firm’s relationship between ES and financial performance, measured by Tobin Q and return on equity, may be significantly affected by board meetings.

Internationalisation and financial performance: in the case of global automotive firms

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Rozaimah Zainudin ◽  
Nurul Shahnaz Mahdzan ◽  
Norzulkarnien Nor Mohamad
Keyword(s):  
Firm Performance ◽  
Financial Performance ◽  
Automotive Industry ◽  
Product Diversification ◽  
Content Type ◽  
Return On Equity ◽  
Advertising Intensity ◽  
Return On Capital ◽  
Market Capitalisation ◽  
The Relationship

Purpose Given the mixed evidence on the relationship between internationalisation and firm performance, the purpose of this study is to investigate the effect of internationalisation on the financial performance in the setting of a matured and stagnant market, the global automotive industry. Design/methodology/approach The study uses 37 automotive manufacturers covering from 2000 to 2015. Panel regression analyses were used to estimate the relationship between four financial performance variables (return on equity [ROE], return on asset [ROA], return on capital [ROC] and return on sales [ROS]) and three main independent variables (foreign assets to total assets [FATA], research and development intensity [RNDi], advertising intensity [ADVi]), controlling for product diversification, firm size, age and risk. Findings The findings reveal that automotive firms with a lower FATA ratio, lower RNDi and higher ADVi tend to achieve higher financial performance. However, the intensity of product diversification does not influence the financial performance of global automakers. Ceteris paribus, larger firms in terms of market capitalisation and new entrants into the market tend to have higher financial performance relative to smaller and older firms. Originality/value This study contributes to the literature first by examining the relationship between internationalisation and firm performance in the setting of a matured market, i.e. the automotive industry. Secondly, the paper uses a multinational sample at a global level; and third, it analyses financial performance on a comprehensive basis via four measures, namely, ROA, ROE, ROC and ROS, as the dependent variables.

Sign in / Sign up

Export Citation Format

Share Document