Presence Of Women Directors Research Articles

Corporate Cash Holdings and Investment Efficiency: Do Women Directors and Financial Crisis Matter?

This study investigates the relationship between corporate cash holdings and investment efficiency, with a focus on how COVID-19 and the presence of women directors may influence this relationship. Using data from Indonesian public companies during the COVID-19 period, comprising 2350 firm-year observations, we employ fixed-effect regression models with industry and year controls to test our hypotheses. Robustness and endogeneity tests are conducted to ensure the reliability of our findings. Our research reveals that companies with larger cash reserves tend to experience decreased investment efficiency during the COVID-19 crisis. Moreover, the negative impact of substantial cash reserves on investment efficiency is exacerbated by the presence of female directors on the board. However, our findings also suggest that female directors can mitigate the adverse effects of excessive cash reserves on a company’s investment efficiency, particularly during unforeseen economic challenges such as the pandemic.

Board diversity, female executives and stock liquidity: evidence from opposing cycles in the USA

PurposeThis study aims to address gaps and limitations in the literature on corporate governance and stock liquidity. It explores the potential benefits of increasing female representation in corporate leadership, which has been a subject of debate and policy intervention in recent years.Design/methodology/approachBased on prior empirical studies and by integrating the insights of different theories, this study links gender diversity to stock liquidity and uses a multivariate panel regression approach.FindingsThe results show that gender diversity, both on the board and in executive positions, positively and consistently affects stock liquidity across different business cycles. The findings reinforce the notion that diverse executive leadership is crucial and influential irrespective of the prevailing economic conditions.Practical implicationsThis study has practical implications for investors, managers and policymakers who are interested in the benefits of gender diversity in corporate leadership. It suggests that increasing the percentage of female executives and board members can improve stock market liquidity, which is a key indicator of market efficiency and firm value.Social implicationsThis study advocates for gender equality and diversity in corporate leadership, which can benefit society. It demonstrates that the presence of women directors can enhance financial stability and thus benefit the stakeholders and the community.Originality/valueThis study contributes to the academic literature by examining the impact of gender diversity on board and executive levels on stock liquidity in the US market. Previous research on this topic has mainly relied on French or Australian data. Moreover, this study extends previous work through examining the case of executives’ gender diversity. To the best of the authors’ knowledge, this study is the first to analyze the relationship between gender diversity and stock liquidity across different business cycles, providing a nuanced understanding of how economic contexts affect this relationship.

The role of the cultural context in moderating the effect between the presence of women directors and firm environmental innovation

AbstractThis study examines the relationship between the presence of women in board of directors and environmental innovation and the moderating role of the cultural context in terms of gender inequality through the lens of Social Identity Theory. We measured the presence of women directors as board gender diversity, presence of only one woman director and presence of at least three women directors. We measured environmental innovation using environmental patents, also distinguishing among Air Pollution, Solid Waste, and Water Pollution. The sample consists of 2453 manufacturing firms operating in Spain, France, Italy, the Netherlands, and Germany. The Multiple Linear Regression Poisson models performed suggest that the presence of women directors do not affect or reduce environmental innovation, while gender inequality in the cultural context plays a negative moderating role. This study contributes to literature as it clarifies the previous contradictory results and investigates the moderating role of the cultural context.

Supply and demand for gender diversity in corporate leadership – the critical mass: evidence from Greece

PurposeThis study aims to examine whether a change in the regulatory requirement toward gender quota for corporate leadership significantly affects the demand and therefore, it increases the presence of women directors and women CEOs. Examining the supply-side, the study also examines whether the supply for women directors and women CEOs based on the presence of qualified women who currently hold upper, middle, or lower management positions is positively related with the presence of women directors and women CEOs. Furthermore, based on the critical mass hypothesis, this study examines whether the presence of women CEOs and critical mass for women directors bring significant impacts on firms' financial and environmental, social and corporate governance (ESG) performance during the subsequent period.Design/methodology/approachUsing the multivariate regression analysis, this study empirically examines the impact of the shift in the demand for women directors and CEOs from the enactment of the Greek Law 4403/2016 on gender quota for corporate leadership. This study also examines the impact of the supply for women in corporate leadership, measured by the percentage of women who hold upper, middle, or lower management positions, on the presence of women directors and CEOs. Then, this study examines the impact of women directors and women CEOs on firms' subsequent financial and ESG performance.FindingsBased on a sample of 71 publicly listed Greek firms and 20 Cyprus listed firms as a control group during 2006–2019, the study finds evidence that both the supply-side and the demand-side bring positive effects on greater women participation in corporate boards. However, there is no evidence that the supply and demand affect the presence of women CEOs. The presence of women CEOs has a positive effect on ESG through environmental and social pillars. The study finds evidence to support the critical mass hypothesis that firms with three or more women boards tend to have higher financial and ESG performance.Social implicationsUnderstanding the supply and demand for gender diversity in corporate leadership in countries that are considered as lagging is critical to foster the global objective to level the playing field for women to participate in corporate management leadership as important part the United Nations Sustainable Development Goal (UNSDG) 5.5. The positive impact of women directors on corporate financial and social performance can be achieved, especially when the critical mass is reached. This highlights the importance of greater gender representations in corporate boards and top executive level in order to make a meaningful social change.Originality/valueThis study demonstrates that the supply of women who currently hold corporate management positions has positive influence on the presence of women boards. This study also demonstrates that a national legislation that promotes gender diversity for corporate board has a positive impact on board gender diversity among Greek listed firms. This study also highlights the importance of integrating the critical mass perspective in considering the impact of supply and demand for women in corporate leadership on firms' financial and ESG performance.

Determinants of Sustainability Disclosure Quality among Plantation Companies in Malaysia

This paper aims to examine the determinants of sustainability disclosure quality among plantation companies in Malaysia. Data analysis is based on all 44 listed plantation companies on Bursa Malaysia between 2016 and 2018. The study utilizes a content analysis adapted from the Global Reporting Initiative (GRI)—G4 guideline, Sustainability Accounting Standard Board guidelines, and Bursa Malaysia Guidelines 2018, to measure sustainability disclosure quality (SDQ). Results from ordinary least squares (OLS) regression analysis corrected for standard errors indicate that shariah-compliant status and internal mechanisms (board size, the presence of women directors, the existence of sustainability committees, and CEOs with business knowledge) significantly improve SDQ. Firm size, firm age, leverage, growth, and Big 4 auditors also significantly improve SDQ. The study provides useful insights into the importance of women directors and the presence of sustainability committees towards SDQ. This study contributes to the discussion that internal mechanisms (board size, independent boards, women directors, sustainability committees) and firm characteristics (shariah compliant, family ownership, CEO ownership, foreign ownership) can increase sustainability reporting and disclosure quality. The measurement of SDQ is novel in Malaysian context even though the methodology is often used in the literature.

The impact of gender diversity on corporate social responsibility knowledge: empirical analysis in European context

PurposeThe Covid-19 pandemic has exacerbated social risks around the world, highlighting inequalities and eroding social cohesion in and between nations. The challenges posed by this global crisis to world governments can be overcome with cooperation between the public and private sectors. Several studies support the importance of external corporate social responsibility (CSR) activities in sharing knowledge with citizens and external stakeholders, with benefits for the company and for society. Few studies have investigated the relationship between knowledge management (KM) and sustainability. This work aims to investigate the influence of the gender variable in the sharing of CSR knowledge, focusing on the area of human rights.Design/methodology/approachThe panel regression analysis was performed on a sample of 660 European companies listed over the years 2017–2020. The hypotheses tested in panel regression were then corroborated by a further test.FindingsThe results show a positive influence of women directors in the external disclosure of human rights. Evidence would assign a positive role to gender in sharing knowledge.Practical implicationsThe findings offer new insights into the role of gender on KM and sharing. The results show that gender can be a factor that stimulates CSR knowledge. The presence of women directors can be a useful tool to increase the relational capital of the companies and to share knowledge outside the company.Originality/valueThe study contributes to the poor literature between knowledge sharing and sustainability. Evidence would assign a positive role to gender in sharing knowledge.

Does the presence of an environmental committee strengthen the impact of board gender diversity on corporate environmental disclosure? Evidence from sub‐Saharan Africa

AbstractThis study examines the relationship between board gender diversity, the presence of environmental committees and corporate environmental disclosure (CED). Using 1130 firm‐year observations of 113 firms listed across five sub‐Saharan Africa (SSA) stock markets from 2010 to 2019, we find that the extent of CED in SSA is low compared with developed countries. However, panel quantile regression analysis reveals that the presence of women directors is positively associated with CED, and the relationship is contingent on the presence of an environmental committee. The study makes three principal contributions: It adds to the limited literature on the relationship between board gender diversity and CED, where virtually all previous studies have been conducted in developed countries; it is the first to examine the direct relationship between environmental committees and CED in the developing world; and, most importantly, it is the first study to examine the possible moderating influence of environmental committees.

Female Directors, Culture and Governance Around the World

The proportion of female directors differs among countries. Drawing on institutional and social role theories, this paper investigates whether national governance quality (NGQ) and national culture (NC) can explain the differences in the appointment of female directors among countries around the world. Using 647 firms from 78 countries over the 2010 to 2017 period, the main findings show that both national culture and governance quality have influence on the appointment of female directors. We find further that the impact of national culture on the presence of women directors is moderated by national governance quality. Finally, the results support institutional and social role theories in terms of explaining the difference in appointment of female directors among countries. Our findings are robust to controlling for endogeneities and alternative measures of culture and female directors.

Is Gender Diversity Significant in Affecting Financial Performance of A Firm? The Case of Indian Automobile Sector

Women can play a key role by mentoring and establishing efficient networking in order to empower them and unlock the doors of success. They constitute a pool of administrative and finance/HR management leadership; but their skills usually go unrecognised despite their experience and qualification. Similar situation can be witnessed in the board room of companies where a smaller number of women directors are employed. As stakeholders have diverse interest, there is need to have diversity in board so that the issues faced by employees, suppliers and customers etc. can be addressed. In this paper an attempt has been made to check the impact of gender diversity on the financial performance of the Indian Automobile companies. In order to check this relationship, the variables taken were profits after tax, return on assets, percentage of women directors in board, Blau Index, Shannon Index, percentage of women directors in the audit committee and total assets. Regression analysis was used to test this association. This study also supports the existing literature that the gender diversity is not having any impact on the financial performance of any company. The gender diversity that is presence of women directors in the board is not affecting the profit after tax and the return on assets of the Indian automobile sector significantly.Classification-JEL: G34, M14, L25

Family owners and the appointment of family and non-family women directors. Where is the ownership point where preferences change?

ABSTRACT We analyse the impact of voting rights in the hands of the dominant family owner on the presence of women directors in a sample of listed family firms in Spain during 2007–2020. As distinctive features of this paper, we examine whether women directors have or do not have family ties with the dominant family owner, use the control-chain methodology to identify the ultimate or dominant owner of Spanish listed firms and analyse a curvilinear association between family ownership and the appointment of family and non-family female directors in family firms. Drawing on socioemotional, agency and stewardship theories, our results show that when the voting rights of the dominant families are low, they appoint more female directors with family associations. The results also indicate that when family voting rights are high, family founders appoint more non-family women directors to benefit from their industry-specific expertise and objective advice. Overall, our findings suggest that when a certain level of family ownership is reached there is a need to reduce the appointment of women directors with family ties in order to move towards a more balanced and diversified board with a wider representation of skills, knowledge, diverse experiences and talent.

Impact of gender diversity in boardroom on risk-return profile of Indian corporates

PurposeThe existing literature point that the presence of women directors in a firm reduces its risk. However, the relation between boardroom gender diversity and a firm’s return is widely disputed leading to no concrete answer. Some studies mention that women directors have a positive impact on firm performance, whereas, on the other hand, some findings suggest that women directors reduce financial performance. This paper aims to study the relationship of firm risk and return with boardroom gender diversity and the net impact on firm performance in the Indian context. This study uses not only traditional measures of risk and return but also the third measure of risk-adjusted returns to postulate its findings.Design/methodology/approachBased upon the data of the top 100 of the Bombay Stock Exchange-500 firms for the period FY 2009–2010 to FY 2018–2019, this study applied fixed effect panel regression and random effects Tobit regression to examine the effect of board gender diversity on firm performance.FindingsThe study concludes that firms with women directors on board have lower risk and lower returns. It also results in a higher risk-adjusted return, creating a positive impact on a firm’s performance.Originality/valueThe paper contributes to the existing literature on corporate governance by considering return, risk and risk-adjusted returns in single research to have a holistic measure of firm performance. It provides empirical evidence from one of the largest emerging economies, India where the female director and independent female director have been introduced recently.

Who counts? The presence of women directors in Spanish independent cinema through a data analysis of film circulation (2013-2018)

This article examines the presence of women filmmakers in Spanish independent cinema by assessing the national circulation of their works in the alternative distribution and exhibition circuit where gender studies are almost inexistent. Along with other neighboring countries, independent filmmaking enjoys a growing cultural weight within a national cinema conditioned by digitalization and the domination of multinational corporations in the aftershock of the economic crisis. The study, based on a representative sample to quantify female directors, carries out a cross-sectional examination in three areas within independent film circulation that, in turn, endow them with such status: festivals, specialized VOD platforms and independent film distribution companies with catalogs for release in traditional movie theaters or the cultural sector. The chosen timeframe is 2013-2018, from the moment independent cinema, branded as other cinema, achieves increased visibility, and establishes itself as an alternative to the commercial cinema in Spain up to the most recent year with available data. The research shows that, although there is a more significant proportion of female filmmakers than in commercial production, it continues to be a minority in the 20% range. Such underrepresentation does not only affect the cultural value of women’s work but also raises questions on the nature of a type of independent film practices that lay claim to cultural diversity.

Women directors and exporting activity: The moderating role of network advice

We use data from Small and Medium Sized Enterprises (SMEs) in the UK to examine the link between the presence of women directors and exporting activity. To do this, we build on resource-based view (RBV) and resource dependence theory (RDT) and show that SMEs with women on the board of directors are less likely to be involved in exporting activity compared to SMEs without women directors. Nevertheless, this negative relationship is moderated by seeking network advice, which can be explained through the social network theory (SNT).

All on board? New evidence on board gender diversity from a large panel of European firms

Using a unique database of over 20 million firms over two decades, we examine industry sector and national institution drivers of the prevalence of women directors on supervisory and management boards in both public and private firms across 41 advanced and emerging European economies. We demonstrate that gender board diversity has generally increased, yet women remain rare in both boards of firms in Europe: approximately 70% have no women directors on their supervisory boards, and 60% have no women directors on management boards. We leverage institutional and resource dependency theoretical frameworks to demonstrate that few systematic factors are associated with greater gender diversity for both supervisory and management boards among both private and public firms: the same factor may exhibit a positive correlation to a management board, and a negative correlation to a supervisory board, or vice versa. We interpret these findings as evidence that country-level gender equality and cultural institutions exhibit differentiated correlations with the presence of women directors in management and supervisory boards. We also find little evidence that sector-level competition and innovativeness are systematically associated with the presence of women on either board in either group of firms.

All on Board? New Evidence on Board Gender Diversity from a Large Panel of Firms

Using a unique database of over 20 million firms over two decades, we examine the industry sector and national institution drivers of the prevalence of women directors on supervisory and management boards in both public and private firms across 41 advanced and emerging European economies. We demonstrate that gender board diversity has generally increased, yet women remain rare in both boards of firms in Europe: approximately 70% have no women directors on their supervisory boards, and 60% have no women directors on management boards. We leverage institutional and resource dependency theoretical frameworks to demonstrate that few systematic factors are associated with greater gender diversity for both supervisory and management boards among both private and public firms: the same factor may exhibit a positive correlation to a management board, and a negative correlation to a supervisory board, or vice versa. We interpret these findings as evidence that country-level gender equality and cultural institutions exhibit differentiated correlations with the presence of women directors in management and supervisory boards. We also find little evidence that sector-level competition and innovativeness are systematically associated with the presence of women on either board in either group of firms.

Does gender diversity on boards influence stock market liquidity? Empirical evidence from the French market

PurposeThe purpose of this paper is to examine the gender diversity on boards and its effect on stock market liquidity in French boardrooms.Design/methodology/approachUsing a sample of French firms between 2002 and 2012 listed on the Paris Stock Exchange (SBF120), the study uses ordinary least squares and three-stage least squares (3SLS) regressions to address endogeneity concerns on the board gender diversity.FindingsThe results show that stock market liquidity is positively and significantly associated with the presence of women directors. The authors find that investors’ decisions vary according to their positions in the board: women independent members decrease illiquidity costs, while the presence of female inside directors increases daily trading volume. In addition, the presence of female inside directors increases the firm’s ability to implement better strategies that cope with economic, social and environmental constraints which leads investors to positively react. Surprisingly, the presence of female independent directors reduces company involvement in sustainable development projects.Practical implicationsThe empirical findings contribute to the current debate on the benefits of gender diversity on corporate boards and the effectiveness of gender-quota laws. It shows that appointing insider female’ directors incite investors to trade more stocks while appointing independents ones reduces their trading costs.Social implicationsThis paper shows that the benefits of female directors appointing depend on their independence of management team.Originality/valueThis study addresses the endogeneity between stock market liquidity, corporate governance and gender diversity. It is the first study to distinguish between the effects of women inside and independent directors on investors’ trading decisions.

Board composition and corporate social responsibility in an emerging market

Purpose The purpose of this paper is to examine the effect of board composition on corporate social responsibility (CSR) for selected Malaysian companies in Bursa Malaysia. Design/methodology/approach The paper analyses board composition and CSR of Malaysian (family and non-family) firms using linear regression analysis. Findings The empirical findings indicate that non-executive directors (NEDs) and independent non-executive directors (INEDs) designate a negative relationship, while women on board indicate a positive relationship. The only variable that positively affects the level of CSR initiatives is the presence of women directors. As for family and non-family business, the main findings are: a positive relationship between NEDs and CSR initiatives in non-family business and a negative relationship between INEDs and CSR for family-controlled business. Research limitations/implications This paper is limited only to selected companies on Bursa Malaysia over a period of two years. The paper suggests that board composition in an emerging market is relatively ineffective in improving CSR initiatives, with the exception of women on board. This is more prevalent in family business, as they do not seem to contribute toward humanizing or cultivating CSR in their companies. Practical implications This paper can be used as a reference by regulatory bodies to further investigate on the means as to how board composition can further contribute toward CSR initiatives, as these board members have inherent authorities and decision-making power. Composition and role of women directors in board needs to be further deliberated. Originality/value This paper contributes to the existing literature in terms of the roles of board composition on CSR initiatives. It further highlights the difference in the aforementioned relationship between family and non-family business.

Does gender diversity on corporate boards increase risk‐taking?

AbstractWe study the impact of board gender diversity on firm risk‐taking in a developing market. Our study is drawn from a sample of 30 Tunisian‐listed firms between 1997 and 2010. First, we found that women have a risk perception that leads to risk avoidance behaviour: the presence of women directors, even when there is one woman director, is positively associated with cash ratio. Second, we showed no significant relationship between board gender diversity and the propensity to take strategic or financial risk‐taking. Third, the presence of state officer/bureaucrats and/or politically connected women have a positive effect on cash holding and investment opportunities. Finally, we found that foreign investors do not invest in firms with gender‐diverse boards. We conclude with a discussion of contributions to scholarship and practice, and present avenues for future research. Copyright © 2015 ASAC. Published by John Wiley & Sons, Ltd.

Board Composition and Corporate Social Responsibility: An Empirical Investigation in the Post Sarbanes-Oxley Era

Although the composition of the board of directors has important implications for different aspects of firm performance, prior studies tend to focus on financial performance. The effects of board composition on corporate social responsibility (CSR) performance remain an under-researched area, particularly in the period following the enactment of the Sarbanes-Oxley Act of 2002 (SOX). This article specifically examines two important aspects of board composition (i.e., the presence of outside directors and the presence of women directors) and their relationship with CSR performance in the Post-SOX era. With data covering over 500 of the largest companies listed on the U.S. stock exchanges and spanning 64 different industries, we find empirical evidence showing that greater presence of outside and women directors is linked to better CSR performance within a firm’s industry. Treating CSR performance as the reflection of a firm’s moral legitimacy, our study suggests that deliberate structuring of corporate boards may be an effective approach to enhance a firm’s moral legitimacy.

Critical Mass Theory and Women Directors' Contribution to Board Strategic Tasks

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.