The Moderating Role of Family Ownership in Board Gender Diversity and Corporate Social Performance

Abstract

This study examines the relationship between board gender diversity (BGD) and corporate social performance (CSP) and the moderating role of family ownership in the relationship between BGD and CSP. This study has leveraged on 4 theories (i.e. social role theory, feminist theory, institutional theory, and stewardship theory). The population of this study represents the top 100 public listed companies in Malaysia based on their market capitalization in year 2016 and the final sample is 83 companies. Secondary data was used for this study and all the variables were measured using content analysis method. The result shows a positive relationship between BGD and CSP. In terms of family ownership, the empirical evidence suggests that the presence of family ownership moderates the relationship between BGD and CSP. This study provides useful insights, practically, this study helps managers, NGO’s and fundraisers to understand the dynamism of CSP, BGD and family owned companies better and able to apply them in their daily life. Not only that, this study also provides implications for enforcing female quotas on corporate boards of directors. This is because greater gender diverse board may lead to greater monitoring of the firm.