scholarly journals Board Gender Diversity, Firm Performance and Risk-Taking: The Case of Non-Financial Firms of Pakistan

2021 ◽  
Vol 3 (3) ◽  
Author(s):  
Raheel Mumtaz ◽  
Muhammad Farooq Rehan ◽  
Quaisar Ijaz Khan
Keyword(s):  
Firm Performance ◽  
Risk Taking ◽  
Stock Exchange ◽  
Gender Diversity ◽  
Return On Assets ◽  
Insolvency Risk ◽  
Financial Firms ◽  
Adverse Influence ◽  
Board Gender Diversity ◽  
Practical Implications

This paper examines the influence of board gender diversity on firm performance and risk taking. We employed the panel data of seventy-five non-financial firms of KSE-100 index listed in the Pakistan Stock Exchange. The data consists of 2005-2018 period. Results of panel regression reveal that board gender diversity have adverse influence on the firm performance i-e Tobin’s Q and return on assets. Moreover, it further provides that board gender diversity has decrease the firm’s risk-taking i-e insolvency risk. Overall, the inclusion of females in the boardroom reduces the financial performance and decrease the risk-taking of non-financial firms in Pakistan. This study provides the managerial and practical implications in compliance with SECP Act of 2017, to include the females in boardroom to discourage the risk-taking behavior of firms.

scholarly journals Unobservable characteristics of board directors and the performance of financial services firms in Nigeria

2020 ◽  
Vol 17 (4) ◽  
pp. 378-388
Author(s):  
Henry Osahon Osazevbaru ◽  
Emmanuel Mitaire Tarurhor
Keyword(s):  
Firm Performance ◽  
Financial Services ◽  
Stock Exchange ◽  
Gender Diversity ◽  
Share Price ◽  
Corporate Board ◽  
Return On Assets ◽  
Data Set ◽  
Strategic Performance ◽  
Financial Firms

This paper examines the intricate link between unobservable characteristics of directors on the corporate board and firm performance. It aims to extend the literature on corporate governance and firm strategic performance from the perspective of emerging African economies. A mix of performance measures were used (Tobin Q, return on assets, and share price) and unobservable characteristics were captured as a stochastic element or heterogeneity of observable board characteristics (board activity, gender diversity, size, and independence). The study applied non-linear generalized auto-regressive conditional heteroscedasticity model to examine the data set consisting of 299 firm-year observations from 23 financial firms listed on the Nigerian Stock Exchange from 2006 to 2018. Positive skewness and leptokurtic distribution were found for all the variables. Correlation matrix revealed no multicollinearity, as the highest value was 0.2386. Empirical results suggest that unobservable characteristics significantly and positively influence firm performance as measured by return on assets and share price. This is because the coefficient of the lagged-value of the variance scaling parameter is positive and significant at the 1% level. However, with respect to Tobin Q measure, the result was positive but not significant at the 5% level. Implicitly, the result is sensitive to performance proxies. Accordingly, this study concludes that unobservable characteristics drive firm performance. It is recommended that boards and regulators should pay attention to unobservable characteristics.

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.

scholarly journals Do Board Gender Diversity and Non-Executive Directors Affect CSR Reporting? Insight from Agency Theory Perspective

2020 ◽  
Vol 12 (20) ◽  
pp. 8597
Author(s):  
Cheng Guping ◽  
Muhammad Safdar Sial ◽  
Peng Wan ◽  
Alina Badulescu ◽  
Daniel Badulescu ◽  
...  
Keyword(s):  
Firm Size ◽  
Stock Exchange ◽  
Gender Diversity ◽  
Least Square ◽  
Executive Directors ◽  
Csr Reporting ◽  
Financial Firms ◽  
Big 4 ◽  
Using Data ◽  
Board Gender Diversity

Our paper provides a valuable contribution by exploring the following complex phenomenon: Do board gender diversity and reputational incentives of non-executive directors affect corporate social responsibility(CSR) reporting? To this end, we use panel data regression (fixed effect) to examine the above relationship by using data from the 2009 to 2019 timeperiod, by using data from non-financial firms listed on the Shanghai Stock Exchange. To deal with the possibility of an endogeneity problem, we have used the two-stage least square (2SLS) regression model. Our empirical results suggest that board gender diversity positively affects CSR reporting. Our study has found that the reputational incentives of non-executive directors improve the CSR reporting. Furthermore, reputational incentives of non-executive directors (NEDs) and CSR reporting are moderated by firm size, this effect being stronger for large firms. Our findings also show that the firm size positively moderates the relationship between gender diversity in boards and CSR reporting. The control variables, namely board size, board member average tenure, leverage, “big 4” and return on assets, have an impact on the firm’s CSR reporting. Therefore, our results contribute towards new aspects in respect to the emerging literature concerning the system of non-executive directors, protection of stakeholder’s interests, and CSR reporting, especially as regards China. Furthermore, our results are robust as concerns alternative measures of variables under consideration.

scholarly journals Aspect[s] of the Corporate Governance that Matter in a Firm’s Value: Evidence from Non-Financial Firms in Pakistan

2019 ◽  
Vol IV (III) ◽  
pp. 214-220
Author(s):  
Sammar Abbas ◽  
Zeeshan Zaib Khattak ◽  
Hafeez Ullah
Keyword(s):  
Corporate Governance ◽  
Firm Performance ◽  
Firm Size ◽  
Significant Influence ◽  
Stock Exchange ◽  
Managerial Ownership ◽  
Board Size ◽  
Financial Firms ◽  
Agency Issues ◽  
Practical Implications

Corporate governance (CG) is key to enhance firm’s value. The purpose of this research is to examine effects of various aspects of corporate governance on firm’s value. We used secondary penal data of 100 companies on Pakistan Stock Exchange for the period: 2010 – 2016. Findings revealed that among other aspects of CG, managerial ownership and board size have significant influence on the value of a firm. Among controlled variables, firm size and firm ages were also found significant in firm’s value. We are convinced that findings of this study would help addressing agency issues through effective corporate governance measures. This study has come up with some practical implications as well. It is suggested that for better firm performance and increasing efficiency the board size may be kept at minimum.

Board gender diversity: performance and risk of Brazilian firms

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Mauro Mastella ◽  
Daniel Vancin ◽  
Marcelo Perlin ◽  
Guilherme Kirch
Keyword(s):  
Firm Performance ◽  
Boards Of Directors ◽  
Gender Diversity ◽  
Ordinary Least Squares ◽  
Firm Risk ◽  
Content Type ◽  
Study Approach ◽  
Female Presence ◽  
Board Gender Diversity ◽  
The Impact

Purpose This study aims to intend to check if female board representation affects performance and risk and to analyse the evolution of the demographic aspects of the presence of women on boards in Brazil. Design/methodology/approach The authors used a sample of 150 Brazilian publicly traded companies from 2010–2018, with different measures of firm performance, firm risk and women’s presence on the board. The study approach is based on a set of ordinary least squares, quantile and panel data regressions. Findings The presence of women on the board has a positive effect on all of our accounting and market performance measures. However, the result of the impact on risk is not conclusive. The study also found that the number of females on the board has a more significant effect at the lower levels of firm performance measured by return on equity, but at the higher levels when measured by Tobin’s Q. Regarding return on assets, the more significant effect happened on the extremes of the performance distribution. The study findings point that market investors place more value in female presence on the board than in director positions. Originality/value By estimating the impact of women’s presence on the boards of directors in firm performance and risk, this study aimed to verify this impact in different aspects of the company. In addition, the authors did so in a sample with many years, making it possible to evaluate the historical evolution of the feminine presence in the boards of administration as well as in the groups of directors, assisting Brazilian legislators with new evidence about the possible impacts of Draft Law 7179/2017.

scholarly journals Does the Board Gender Diversity Enhance Firm Performance?

2020 ◽  
Vol 10 (1) ◽  
Author(s):  
Rita R. Pidani ◽  
◽  
Amir Mahmood ◽  
Frank W. Agbola ◽  
◽  
...  
Keyword(s):  
Firm Performance ◽  
Gender Diversity ◽  
Board Gender Diversity
Sign in / Sign up

Export Citation Format

Share Document