How Board Diversity Affects Firm Performance In Emerging Markets
How Board Diversity Affects Firm Performance In Emerging Markets

Author: Melsa Ararat

Publisher:

Published: 2015

Total Pages:

ISBN-13:

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We investigate the indirect effect of a board's demographic diversity on firm performance via board monitoring in a context where boards are relatively homogeneous with respect to structural diversity, using data from Turkey. We contextualise our investigation by exploring the influence of ownership configurations on the effect of diversity. We find a positive and non-linear relationship between demographic diversity and performance, mediated by the board's monitoring efforts. The effect of monitoring is found to be contingent upon (moderated by) the control-ling shareholders' propensity to expropriate, measured by the deviation of control rights from cash flow rights, i.e. the wedge. We report that demographic diversity enhances firm performance by mitigating the negative effect of the wedge on board monitoring.Our results provide empirical support for the importance of contextual factors in the relationship between diversity and performance. Our framework and the compound diversity and board-monitoring indices we construct may prove useful to researchers.Practitioner/Policy Implications: Regulators can use our findings in formulating recommendations or regulations related to desirable characteristics of boards. Our results are also instructive for investors and proxy advisors and indicate that the mere existence of monitoring vehicles may be insufficient to prevent expropriation by dominant shareholders, but diverse boards may mitigate the propensity to expropriate. Board members and shareholders should also benefit from the findings in creating boards that are more diligent monitors.

The Benefits and Costs of Group Affiliation
The Benefits and Costs of Group Affiliation

Author: Stijn Claessens

Publisher:

Published: 2002

Total Pages: 36

ISBN-13:

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This paper investigates the benefits and associated agency costs of using internal capital markets through affiliating with groups using data of two thousand firms from nine East Asian economies between 1994-96. We find that mature and slow-growing firms with ownership structures more likely to create agency problems gain more from group affiliation, while young and high-growth firms more likely lose. Agency problems are important explanatory factors of firm value in economies outside Japan, but less so in Japan. Consistent with the literature, financially-constrained firms benefit from group affiliation. Our results are robust to different time periods and estimation techniques.

Corporate Governance and Organisational Performance
Corporate Governance and Organisational Performance

Author: Naeem Tabassum

Publisher: Springer Nature

Published: 2020-06-28

Total Pages: 335

ISBN-13: 3030485277

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Establishing a corporate governance strategy that promotes the efficient use of organisational resources is instrumental in the economic growth of a country, as well as the successful management of firms. This book reviews existing literature and identifies board structural features as key variables of an effective corporate governance system, establishing a multi-theoretical model that links Board structural characteristics with firm performance. It then, using a comprehensive empirical study of 265 companies listed on the Karachi Stock exchange, tests this conceptual model. This research serves as a significant milestone, reflecting the socio-economic setting of emerging economies, and highlighting the need for the corporate sector in emerging markets to move away from a 'tick-box' culture. It argues that the sector needs to implement corporate governance as a tool to mitigate business risks; appoint and empower non-executive directors to achieve an effective monitoring of management; and establish their own ethical and governance principles, applicable to the Board of Directors. Based on an extensive data base, collected painstakingly over five years, this book offers new insights and conceptual framework for further research in this area. Given the breadth and width of the research, it is a useful source of future reference for students, researchers and policy makers.

Corporate Governance and Diversity in Boardrooms
Corporate Governance and Diversity in Boardrooms

Author: Barbara Sveva Magnanelli

Publisher:

Published: 2021

Total Pages: 0

ISBN-13: 9783030561215

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This book explores diversity in boardrooms to highlight the link between the heterogeneous dimensions of board diversity and their impact on the firms. The book provides a brief definition of corporate governance and focuses on the role and functions of the board of directors. The work contributes to the literature enriching the empirical findings about board diversity. After a deep review of the literature within several theoretical frameworks, such as agency, stakeholder, stewardship, resource dependence, and the institutional theory, the focus moves on the impact on financial performance. The board diversity effects are tested through an empirical analysis conducted on a sample of European listed companies, performing both a single and a joint diversity index analysis. Practitioners and academics will find this book particularly timely and useful as it combines both a review of the literature and robust empirical investigation. It will be an excellent reading for academics and practitioners interested in firm performance, corporate governance and stakeholder theory.

Board Diversity and Firm Performance
Board Diversity and Firm Performance

Author: Raj Aggarwal

Publisher:

Published: 2019

Total Pages:

ISBN-13:

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There is little consensus globally on the relationship between board diversity and firm performance. Using the resource dependence and agency views, this paper examines how business group affiliation influences the relationship between board diversity and firm performance as a contextual/confounding factor. Based on data for listed firms in India, we find that board demographic diversity is positively associated with the firm performance (Tobin's Q) of standalone firms, but this association is negative for group-affiliated firms. This negative effect of group affiliation is confirmed in a test based on a novel measure of firm performance using the stock market reaction to the announcement of mergers and acquisitions. For both measures of performance, we show that business group affiliation impairs the positive firm value effects of board demographic diversity. These findings imply that the relationship between board diversity and firm performance requires re-examination in the many countries where group affiliation is common. Our results also provide evidence of a new cost of group affiliation and show in a fresh context that cross-country studies should account for international variations in ownership and institutional structures.

Enhancing Board Effectiveness
Enhancing Board Effectiveness

Author: Franklin N. Ngwu

Publisher: Routledge

Published: 2019-03-07

Total Pages: 340

ISBN-13: 1351689053

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Enhancing Board Effectiveness seeks to examine the conceptualization and role of the board in a variety of contexts and articulate solutions for improving the effectiveness of the board, especially in developing and emerging markets. Enhancing Board Effectiveness with therefore address the following central questions: To what extent is the concept and role of the board evolving? What rights, powers, responsibilities and other contemporary and historical experiences can enhance the effectiveness of the board, especially in the particular contexts of developing and emerging markets? What socio-economic, political, regulatory and institutional factors/actors influence the effectiveness of the board and how can the policies and practices of such actors exert such influences? In what ways can a reconstructed concept of the board serve as a tool for theoretical, analytical, regulatory and pragmatic assessment of its effectiveness? In examining this issues, Enhancing Board Effectiveness will investigate theoretical, socio-economic, historical, empirical, regulatory, comparative and inter-disciplinary approaches. Academics in the relevant fields of accounting, behavioural psychology/economics, development studies, financial regulation, law and management/organizational studies, political economy and, public administration will find this book of high interest.

Women, Work and Computerization
Women, Work and Computerization

Author: Ellen Balka

Publisher: Springer

Published: 2013-11-11

Total Pages: 317

ISBN-13: 038735509X

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ELLENBALKA Simon Fraser University ebalka@Sfu. ca 1. INTRODUCTION In developing the call for papers for the 7th International Federation of Information Processors (IFIP) Women, Work and Computerization Conference, we sought to cast our net widely. We wanted to encourage presenters to think broadly about women, work and computerization. Towards this end, the programme committee developed a call for papers that, in its final form, requested paper submissions around four related themes. These are (1) Setting the Course: Taking Stock of Where We Are and Where We're Going; (2) Charting Undiscovered Terrain: Creating Models, Tools and Theories; (3) Navigating the Unknown: Sex, Time, Space and Place, and (4) Taking the Helm: Education and Pedagogy. Our overall conference theme, 'Charting a Course to the Future' was inspired in part by Vancouver's geography, which is both coastal and mountainous. As such, navigation plays an important part in the lives of many as we seek to enjoy our environs. In addition, as the first Women, Work and Computerization conference of the new millennium, we hoped to encourage the broad community of scholars that has made past Women, Work and Computerization conferences a success to actively engage in imagining--and working towards-- a better future for women in relation to computers. The contributions to this volume are both a reflection of the hard work undertaken by many to improve the situation of women in relation to computerization, and a testament to how much work is yet to be done.

Gender Diversity in the Boardroom
Gender Diversity in the Boardroom

Author: Cathrine Seierstad

Publisher: Springer

Published: 2017-09-13

Total Pages: 285

ISBN-13: 3319561421

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This edited collection provides a structured and in-depth analysis of the current use of quota strategies for resolving the pressing issue of gender inequality, and the lack of female representation on corporate boards. Filling the gap in existing literature on this topic, the two volumes of Gender Diversity in the Boardroom offers systematic overviews of current debates surrounding the optimisation of gender diversity, and the suggested pathways for progress. Focusing on sixteen European countries, the skilled contributors explore the current situation in relation to women on boards debates and approaches taken. They include detailed reflections from critical stakeholders, such as politicians, practitioners and policy-makers. Volume 1 focuses on eight European countries having adopted quotas and is a promising and highly valuable resource for academics, practitioners, policy makers and anyone interested in gender diversity because it examines and critiques the current corporate governance system and national strategies for increasing the share of women not only on boards, but within companies beyond the boardroom.