THE HUMAN CAPITAL OF BOARDS OF DIRECTORS AND INNOVATION: AN EMPIRICAL EXAMINATION OF THE PHARMACEUTICAL INDUSTRY

2019 ◽  
Vol 24 (06) ◽  
pp. 2050056
Author(s):  
ALIX VALENTI ◽  
STEPHEN HORNER
Keyword(s):  
Human Capital ◽  
Pharmaceutical Industry ◽  
Boards Of Directors ◽  
Resource Dependence ◽  
Corporate Boards ◽  
Women Directors ◽  
Firm Innovation ◽  
Empirical Examination ◽  
The Impact ◽  
Strategic Outcomes

The human capital of corporate boards of directors is a key organizational resource affecting a variety of strategic outcomes. Using human capital theory within the broader theoretical contexts of agency theory and the resource dependence perspective, we investigate the effects of certain types of board human capital on firm innovation. Our findings are generally supportive of our theory that board human capital is associated with firm innovation. Specifically, we examine the role of certain types of board human capital on firm innovation and find that scientific expertise, industry experience, financial expertise, and women directors positively affect firm innovation in the pharmaceutical industry, with innovation measured by R&D expenditures and number of patents. These results imply that the knowledge, experience, and expertise that directors bring to corporate boards are important considerations in constituting corporate boards. Further, our work adds to understanding of the impact of board characteristics on firm strategic outcomes.

scholarly journals Does Board Gender Diversity Affects Dividend Payout? Evidence from a review of literature

2020 ◽  
Vol 5 (16) ◽  
pp. 19-34
Author(s):  
Emma Anuar ◽  
Rozainun Abdul Aziz ◽  
Maslinawati Mohamad ◽  
Rugayah Hashim
Keyword(s):  
Gender Discrimination ◽  
Boards Of Directors ◽  
Publishing House ◽  
Gender Diversity ◽  
Board Composition ◽  
Corporate Boards ◽  
Women Directors ◽  
Dividend Payout ◽  
Board Gender Diversity ◽  
The Impact

The objective of this paper is to review the literature on how board gender diversity impacts dividend payout among public listed companies in Malaysia. Traditionally, higher-level management positions are held by men. Leadership and decision making are predominantly male, while the minority are women directors. When corporate boards show diversity, there is a significant presence of women or the addition of women to the board. In the past, present, and indeed the future, board gender diversity is the issue that is a growing trend and is getting more attention. The shareholders and investors are putting pressure on the boards of directors’ to show increased performance. The findings from this paper will provide evidence on whether board gender diversity influences the dividend payout. Board composition without gender discrimination is the new normal for corporations to thrive after the global lockdowns from Covid-19. Other relevant matters on the impact of board gender diversity will also be discussed.Keywords: board gender diversity; board characteristics; board composition; board traits; female directors; dividend payout; MalaysiaeISSN: 2514-7528 © 2020 The Authors. Published for AMER ABRA cE-Bs by e-International Publishing House, Ltd., UK. This is an open-access article under the CC BY-NC-ND license (http://creativecommons.org/licenses/by-nc-nd/4.0/). Peer–review under responsibility of AMER (Association of Malaysian Environment-Behaviour Researchers), ABRA (Association of Behavioural Researchers on Asians) and cE-Bs (Centre for Environment-Behaviour Studies), Faculty of Architecture, Planning & Surveying, Universiti Teknologi MARA, Malaysia.DOI: https://doi.org/10.21834/jabs.v5i16.350

scholarly journals Presence of Women on Board: Reference to BSE-30 Companies from 2010-2014

2017 ◽  
Vol 1 (1) ◽  
pp. 24-30
Author(s):  
Nisa S
Keyword(s):  
Boards Of Directors ◽  
Gender Diversity ◽  
Corporate Boards ◽  
Women Directors ◽  
Global Workforce ◽  
Talent Pool ◽  
Women Employees ◽  
Board Performance ◽  
Changing Demographics

The need for gender diversity in the board rooms is getting accepted at corporate levels both national and international. Any change which is brought about voluntarily is more effective and long lasting. Gender representation on corporate boards of directors refers to the proportion of men and women who occupy board member positions. Studies have shown that even though there is no real dearth of talent pool, India, comparatively, has significantly a very low percentage of women representation on boards. No one doubts the importance of diversity in boardrooms, especially in improving corporate governance. With the changing demographics of the global workforce and the fact that women will control 75% of discretionary spending by 2028, globally companies cannot underestimate the importance of improving the gender balance on their boards. Women are increasingly becoming a major driver of the economy, both as contributors and as customers; it is appropriate that they be a part of the team leading companies. Past researches have shown that boards with more women members act as a motivator to other women employees within the organization. Continuing reliance on existing directors is likely to dilute the quality of board members. Broadening the talent pool by including women directors will help boards get skilled and competent members with a diversity of perspectives and leadership styles who can significantly contribute to board performance. The following study was conducted to assess the presence of women on board in BSE 30 listed companies from 2010 to 2014.

scholarly journals The Impact of Effective Corporate Boards and Audit Committees on Attracting Foreign Ownership in Listed Companies in the Gulf Cooperation Council

2017 ◽  
Vol 9 (2) ◽  
pp. 190
Author(s):  
Mohammed Gubran Al-shamahi ◽  
Kamarul Bahrain Abdul Manaf ◽  
Ali Saleh Al-arussi
Keyword(s):  
Firm Size ◽  
Stock Markets ◽  
Boards Of Directors ◽  
Listed Companies ◽  
Foreign Ownership ◽  
Gulf Cooperation Council ◽  
Audit Committees ◽  
Corporate Boards ◽  
Political Risks ◽  
The Impact

This study empirically examines the impact of effectiveness of both corporate boards and audit committee on foreign ownership in selected non-financial listed companies of the stock markets in Gulf Cooperation Council (GCC) countries. Contrary to previous studies, this study enters the firm size, leverage, exchange rate risks, inflation risks and economic growth as control variables. For the first time, it also includes the political risks’ variable as a control variable that may affect foreign ownership. In term of panel data regression analysis, the study was built on fixed effect model and conducted to the period of 2012-2015 for 143 non-financial listed companies on the GCC stock markets. Our results explain that foreign ownership is positively related to the effectiveness of both the boards of directors and the audit committees. Political risks and firm size are positively significant with foreign ownership, while the leverage is negatively related to foreign ownership. The implication of this study may help beneficiaries in making better policy decisions and provide guidance for corporate managers on the needs of foreign investors.

scholarly journals Critical mass theory and women directors’ contribution to board strategic tasks

2010 ◽  
Vol 6 (3) ◽  
pp. 42-51 ◽  
Author(s):  
Mariateresa Torchia ◽  
Andrea Calabrò ◽  
Morten Huse ◽  
Marina Brogi
Keyword(s):  
Empirical Test ◽  
Critical Mass ◽  
Corporate Boards ◽  
Women Directors ◽  
Corporate Board ◽  
Policy Makers ◽  
The Public ◽  
Women On Corporate Boards ◽  
The Impact ◽  
Legislative Measures

In this article we offer an empirical test of the critical mass arguments in the discussion of women on corporate boards. The literature in the women on corporate board debate concludes that there must be at least three women on a board before the women really make a difference. These arguments are frequently used in the public debate about the understanding the impact of women on corporate boards, but they have never really been empirically tested on a large sample. In this paper we use a sample of 317 Norwegian firms. Our dependent variable is board strategic involvement. The findings support the critical mass arguments. This study offers useful insights to policy-makers interested in defining legislative measures mandating the presence of women directors in corporate boards by showing that “at least three women” may be particularly beneficial in terms of contribution to board strategic tasks.

Female board directorship and earnings management

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Yosra Mnif ◽  
Imen Cherif
Keyword(s):  
Earnings Management ◽  
Family Firms ◽  
Gender Diversity ◽  
Corporate Boards ◽  
Women Directors ◽  
Homogeneous Sample ◽  
Content Type ◽  
Gender Diverse ◽  
Gender Quota ◽  
The Impact

Purpose This paper aims to examine the impact of female board directorship on the extent of earnings management. Design/methodology/approach The research hypotheses have been tested using both univariate and multivariate analyzes based on a sample of 198 firm-year observations from closely-held family firms listed on the SBF 120 over the period 2010–2018. Findings The empirical results first indicate that female board participation reduces the level of earnings management. When looking at women positions in the companies’ boardrooms, the authors reveal that the negative linkage between female board directorship and earnings management remains constant for independent female directors while the opposite holds for their family-affiliated counterparts. Further, the gender quota reform is shown to mitigate the adverse relationship between gender-diverse corporate boards and the extent of earnings management. These results seem sound, as they hold unchanged for the several measures of, both, boardroom gender diversity and earnings management used in the empirical study. In a supplementary analysis, the authors provide evidence that the association between the presence of women directors on the companies’ boards and earnings management depends, in a different way, on the size of the audit firm in a joint auditing context. Originality/value The country and the period considered in this paper are noteworthy characteristics that enhance the value of this research. The present study is relevant because it examines the relationship between female boardroom participation and earnings management using a homogeneous sample of family-owned and -managed companies within which shareholders and board members share identical motives for manipulating earnings in one of the leading countries in the world with regard to family ownership dominance (i.e. France). Moreover, this paper is considered to be very timely, as it explores, contrarily to previous related studies, the years following the implementation of a mandatory gender quota reform in one of the less available countries, to date, that have amended a gender quota law. To the knowledge, besides France, there are a few markets (Norway, Belgium, Finland and Iceland) that have implemented such legislation.

Tokenism or realism? Gender inclusion in corporate boards

2020 ◽  
Vol 39 (6) ◽  
pp. 707-725
Author(s):  
Arunima Haldar ◽  
Sumita Datta ◽  
Snehal Shah
Keyword(s):  
Social Capital ◽  
Ownership Structure ◽  
Corporate Boards ◽  
Women Directors ◽  
Negative Effects ◽  
Content Type ◽  
Endogenous Factors ◽  
Gender Biases ◽  
Human And Social Capital ◽  
The Impact

PurposeThe paper investigates how the interplay of women-specific human and social capital factors with ownership structure impacts her chances to get director level appointment in the light of recent amendments to the Indian statute.Design/methodology/approachThe strength of the study lies in fitting a logistic regression model to the unique hand collected data on women director characteristics from 100 large listed Indian firms.FindingsCounter intuitive findings reveal negative effects of social capital on appointment of independent women directors. This relationship gets reversed when social capital is moderated by ownership structure.Social implicationsCompanies may be influenced to take into cognizance the underlying gender biases prevailing in the highest echelons of management and employ un-gendered fair selection practices for board level appointments in order to progress towards gender balanced corporate boards.Originality/valueThe paper is a first of its kind that combines aspects of human capital and ownership structure using Indian data. By developing several new proxy variables to enrich the construct of social capital it contributes to the corporate governance literature and lastly, through main and interaction effects, the paper offers a deeper understanding about the impact of endogenous factors of corporate boards on women's representation at leadership levels in India.

Do Women Directors Impact Financial Outcomes? The Indian Evidence

2020 ◽  
Vol 13 (2) ◽  
pp. 119-139
Author(s):  
Anil Kumar ◽  
Narander Kumar Nigam ◽  
Kirtivardhan Singh
Keyword(s):  
Stock Returns ◽  
Random Effects ◽  
Firm Growth ◽  
Resource Dependence ◽  
Women Directors ◽  
Market Returns ◽  
Financial Outcomes ◽  
Board Processes ◽  
Fixed And Random Effects ◽  
The Impact

This article investigates the impact of women directors on financial outcomes—return and risk of Indian companies. It applies fixed and random effects Tobit regressions to examine the effect of female directors on financial outcomes (returns and risk) of the firm, controlling promoters’ shareholding, leverage, firm growth and age, board size and board meetings. The study does not find any support to agency and resource dependence theories because the proportion of women directors in most Indian boards is too small to make much impact. However, it has a moderating influence to reduce variations in accounting profits and stock returns. The investors reward also meeting the regulatory quota of woman member on the boards by higher market returns indicating a signalling effect. The study adds an understanding of quota induced women directors’ influence on the firm’s financial outcomes. However, the regulators should be cautious in mandating induction of women members on the boards as they might be inexperienced or lack the needed grounding to effectively influence board processes.

scholarly journals The Impact of Politically Connected CEOs and Boards of Directors on Firm Performance: A Study of Vietnamese Family and Nonfamily Firms

2021 ◽  
pp. 104225872098547
Author(s):  
Trung Quang Dinh ◽  
Andrea Calabrò ◽  
Giovanna Campopiano ◽  
Rodrigo Basco
Keyword(s):  
Boards Of Directors ◽  
Resource Dependence ◽  
Family Firms ◽  
Institutional Economics ◽  
Resource Dependence Theory ◽  
New Institutional Economics ◽  
Political Connection ◽  
Dependence Theory ◽  
Family Leadership ◽  
The Impact

Integrating new institutional economics and resource dependence theory, this study investigates whether in transition economies, characterized by shifting from centrally commanded to more market-oriented economies, there are performance differences among family firms (FFs), nonfamily firms (non-FFs), and former state-owned enterprises (former SOEs), and whether political connections affect these differences. Our findings suggest that FFs outperform non-FFs and former SOEs, unless non-FFs have politically connected CEOs. The performance gap in favor of FFs increases at high levels of board political connection intensity. Among FFs, the top-performing ones either promote nonfamily leadership or combine family leadership with politically connected boards of directors.

Human capital and professional network effects on women’s odds of corporate board directorships

2015 ◽  
Vol 30 (7) ◽  
pp. 523-550 ◽  
Author(s):  
Renuka Hodigere ◽  
Diana Bilimoria
Keyword(s):  
Human Capital ◽  
Boards Of Directors ◽  
Corporate Boards ◽  
Corporate Board ◽  
Professional Networks ◽  
Public Companies ◽  
Content Type ◽  
Professional Network ◽  
Depth Analysis ◽  
Board Membership

Purpose – The purpose of this study is to examine the importance of human capital and professional networks for women’s and men’s appointment to the boards of directors of public companies. The study provides an in-depth analysis of how human capital and professional networks contribute to women’s as compared with men’s odds of corporate board membership. Design/methodology/approach – The study analyzes the human capital and professional networks of 494 male and female corporate outside (non-executive) directors appointed between 2005 and 2010 to the boards of US public companies listed in the Standard & Poor’s 500 index. Human capital was measured as director age, education and professional experience (function and role). Professional network variables measured included composition of professional network, network centrality, constraint and cohesion. Findings – The study’s findings reveal that the characteristics that impact the appointment of women as outside directors to public company boards differ from those of men. Relative to men, certain professions such as government relations and education improve the odds of appointment of women to corporate boards, while age lowers women’s odds. The number of network ties and the degree of network cohesion were also significant in predicting the likelihood of female board appointment to public corporations relative to men’s odds. The final model was able to predict female board membership correctly only in 28 per cent of the cases, while male board membership was predicted in 89 per cent of the cases, suggesting that factors other than human capital and professional networks (e.g. their gender) impact women’s appointment to corporate boards. Originality/value – To the authors ' knowledge, this study is the first to comprehensively examine the professional network components of female and male directors along with their human capital in the analysis of their prospects for board appointment. The conceptualization of professional networks as well the depth of quantitative analysis of the network components of the study advance the extant literature on the composition of corporate boards.

Why aren't More Women on Corporate Boards?: Views of Women Directors

1996 ◽  
Vol 79 (3) ◽  
pp. 840-842 ◽  
Author(s):  
Ronald J. Burke
Keyword(s):  
Boards Of Directors ◽  
Corporate Boards ◽  
Women Directors ◽  
Women On Boards ◽  
Women On Corporate Boards

This study examined views of 280 women directors as to why so few women sit on corporate boards. They served on Canadian corporate boards of directors and completed anonymous questionnaires. Women directors wanted more women on boards. Attitudes of male CEOs and board Chairmen were seen as the biggest obstacle.

Sign in / Sign up

Export Citation Format

Share Document