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The role of national culture in the impact of board gender diversity on firm performance: evidence from a multi-country study

The role of national culture in the impact of board gender diversity on firm performance:... This study seeks to add more insights to the debate on “whether”, “how”, and “under which condition” women representation on the board contributes to firm performance. More specifically, the current study aims to investigate if the effect of board gender diversity on firm performance is dependent on macro factors of national cultures.Design/methodology/approachThe authors used the generalized method of moments regression and a data set consists of 2,550 company year observations over 10 years.FindingsThe results indicated that cultural variables interact with board diversity to influence firm performance. Having women on the board in countries with high power distance, individualist, masculine and low-uncertainty avoidance culture influences the firm performance negatively.Originality/valueThe findings indicate that the effects of corporate governance structure on firm performance depends on culture-specific factors, providing support for the argument that institutional norms that are governed by cultural norms affect the effectiveness of corporate governance structure. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Equality, Diversity and Inclusion: An International Journal Emerald Publishing

The role of national culture in the impact of board gender diversity on firm performance: evidence from a multi-country study

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Publisher
Emerald Publishing
Copyright
© Emerald Publishing Limited
ISSN
2040-7149
DOI
10.1108/edi-04-2020-0092
Publisher site
See Article on Publisher Site

Abstract

This study seeks to add more insights to the debate on “whether”, “how”, and “under which condition” women representation on the board contributes to firm performance. More specifically, the current study aims to investigate if the effect of board gender diversity on firm performance is dependent on macro factors of national cultures.Design/methodology/approachThe authors used the generalized method of moments regression and a data set consists of 2,550 company year observations over 10 years.FindingsThe results indicated that cultural variables interact with board diversity to influence firm performance. Having women on the board in countries with high power distance, individualist, masculine and low-uncertainty avoidance culture influences the firm performance negatively.Originality/valueThe findings indicate that the effects of corporate governance structure on firm performance depends on culture-specific factors, providing support for the argument that institutional norms that are governed by cultural norms affect the effectiveness of corporate governance structure.

Journal

Equality, Diversity and Inclusion: An International JournalEmerald Publishing

Published: Jun 8, 2021

Keywords: Firm performance; Board diversity; National culture; Gender; Corporate governance

References