The shape of female board representation

The connection between gender diversity and firm performance: Evidence from Taiwan

We integrate the resource dependence and institutional economics theories to theorize and test the global drivers of female board representation on corporate boards. We examine both female board percentage (inclusiveness) and female board turnover (sustainability). Using a longitudinal panel dataset of 1071 firms across 42 countries over a 10-year period (2004 to 2013) and qualitative interviews of 25 female board members from 4 countries, we find support for our predictions. The resource dependence variable of female economic empowerment (female education and employment levels in a country) related positively to female board percentage and negatively to female board turnover. However, the institutional economics variable of female board legislative quotas related positively to both female board percentage and turnover. We also found that female economic empowerment and female board legislative quotas interacted positively and reinforced each other’s effects in predicting female board percentage but did not interact in influencing female board turnover. The qualitative interviews shed light on the underlying mechanisms of these relationships as prescribed in the two theories. Our study illuminates the importance of utilizing a multi-theoretic approach in explaining the global nature of the female board representation phenomenon.

Purpose This study aims to examine the association between board characteristics (namely, diligence, independence, gender diversity, size and expertise) and sustainability-related disclosures (SRD) in Malaysia. Design/methodology/approach A robust SRD index of 409 items is used to derive SRD scores for 56 Malaysian listed companies from 2018 to 2020, yielding 168 observations. Pooled ordinary least squares is applied to test the research hypotheses and model. Findings The authors find that board members in audit committees and female board members show a significant relationship with SRD, casting doubt on the widely held belief that other board characteristics (such as size, diligence, independence and expertise) independently impact SRD. However, the authors find that market influence (firm value) and firm size are associated with SRD. Practical implications SRD is at its nascent stage, and companies are cherry-picking on what to report, as evidenced in the SRD scores. Regulators and policymakers must recognize the complex interplay between various factors impacting SRD for the timely issuance of comprehensive rules for firms to comply. The regulators’ drive for more female board representation can be a boost to enhance the sustainability agenda for Malaysian listed companies. The SRD scoring template can be used on post-2020 data to investigate the sustainability maturity of Malaysian listed companies. Originality/value The authors evidence that SRD practice is in the early stages of maturity using the comprehensive SRD scoring template. Although the findings contradict prior studies, the authors believe this is driven by the robust SRD measure based on the latest Global Reporting Initiative and Bursa rules.

European board structure and director expertise: The impact of quotas

Abstract: This study examines the impact of female board participation on earnings management in Nigerian manufacturing firms between 2014 and 2024. Drawing from annual reports of sixteen listed companies, female CEO power and female board size were used as measures of board gender participation, while earnings variability served as a proxy for earnings management. Employing a static panel regression under an ex-post facto research design, the results indicate that female CEO power has a negative but statistically insignificant association with earnings management, whereas female board size shows a positive and marginally significant effect at the 10% level. These findings suggest that while the presence of women in top leadership positions may not independently deter earnings manipulation, larger female representation on boards could be linked to increased earnings management activities, potentially reflecting contextual and governance factors in the Nigerian corporate environment. The study recommends appointing more qualified women as CEOs, enhancing their ownership stakes to strengthen influence, and ensuring that female board members are empowered to contribute effectively. These insights contribute to corporate governance debates and offer guidance for policy reforms aimed at improving board diversity and financial reporting integrity.

Can Shareholder Activism Improve Gender Diversity on Corporate Boards?

PurposeGender diversity is extensively debated and researched in relation to corporate boards. The focus on the gender composition on single boards neglects an important issue: that of how the power of board members is impacted by their representation on other boards. Board interlocks refer to how a board member is also represented on other companies’ boards, and such representation expectedly makes the individual board member more influential in the boardroom than non-connected board members. The purpose of this paper is to investigate whether and how female board interlocks are considered in previous research on gender diversity on boards.Design/methodology/approachA systematic literature review was conducted. It comprised 71 highly cited articles. The articles were analyzed to grasp their content, and specifically, female influence in the boardroom related to power.FindingsThe literature review reveals that the interlock perspective is rare in studies on women’s board representation. This is so, even while evidence is provided that females often need companions to get their meanings across on the boards, despite how interlocks would create one link of such power, and although the literature points to how female board representation plays a part to explain performance, social responsibilities and overall strategic directions of firms.Originality/valueContributions are made to previous research by indicating the potential of further research in a largely neglected area of research while also summarizing the previous reporting on women on boards.

The primary objective of this research is to investigate the extent to which specific attributes of the board of directors affect Carbon Emission Disclosure (CED) practices within energy firms across Indonesia and Malaysia. The research population comprises all energy companies listed on the Indonesia Stock Exchange and Bursa Malaysia during the period 2022–2024. Using a purposive sampling method, the samples were selected based on specific criteria, primarily the accessibility of sustainability and annual reports and the completeness of the data required for the analysis, resulting in 119 firm-year observations. This study adopts a quantitative approach and employs multiple linear regression to analyze the effects of foreign board members, female board members, board expertise, and board educational background on CED. Data analysis was conducted using SPSS version 24, preceded by descriptive statistics and classical assumption tests. The results indicate that board characteristics jointly have a significant effect on Carbon Emission Disclosure. To some extent, female board members, board expertise, and board educational background have a positive and significant influence on the depth and measurability of carbon emission disclosure. In contrast, the presence of foreign board members shows a positive but insignificant effect on CED. These findings imply that variations in Carbon Emission Disclosure are more strongly driven by board attributes closely related to monitoring capacity and internal reporting processes. This study concludes that strengthening internal board characteristics is crucial for enhancing the quality of Carbon Emission Disclosure in energy-sector companies in Indonesia and Malaysia.

In the context of corporate governance principles, governments set regulations to increase the sustainable representation of women on boards. This paper seeks to answer the question of whether or not the application of compulsory or voluntary quotas for female board members improves firm performance. Based on difference analyses on the 2011 principles of the Capital Markets Board (CMB), we do not find significant differences between the companies with at least one female member on their board and those without any female board members in terms of financial performance indicators (return on asset (ROA), return on equity (ROE), market value/book value (MV/BV)). Based on difference analyses on the 2014 principles of the Capital Markets Board, we further find that the ROA of the companies with 25% and more female members is lower than the companies with <25% female members. These results don’t support the arguments of agency theory, because government regulations including the efforts of women to increase their representation rate on the board in a sustainable manner don’t improve the accounting-based and market-based performance indicators of companies. If the company is successful, a quota for women cannot be imposed, because the obligation may result in a negative effect. Policymakers and practitioners may benefit from the knowledge that women may be improved and prepared for these positions and be accompanied with mentors before filling the compulsory or voluntary quota for women. It is not enough to increase the rate of women. The policy implication of the paper is that women must be equipped with the resources, authority, knowledge, and skills to perform well.

Female board representation, corporate innovation and firm performance

The Two-Pronged Approach of the (Semi-)Legal Norms on Gender Diversity: Exploratory Empirical Research on Corporate Boards of Dutch Listed Companies

This study examines the effectiveness of soft law through scrutinizing national policies for enhancing the proportion of women on corporate boards. Soft laws, which have less precision and obligation dimensions than conventional laws, are widespread within financial regulation. Despite this widespread use there relative performance is unexplored. To resolve this, we undertake a comparative examination of 14,012 firms from 99 nations, using a three-stage analysis to examine the effect of different policies, their format and influence of institutional factors on female board representation. We report that soft laws are effective for promoting gender equality on corporate boards. The effectiveness of policies is strongly influenced by the enforcement, implementation and compliance dimensions of policy, and institutional factors. Policies are most potent when enforced using a moderate level of sanctions, with a longer compliance period and a diversity target less distant from a firm’s precedent gender diversity level.

This study investigates the impact of corporate governance on the financial performance of Nigeria's publicly traded commercial banks. The objective of this study is to determine if board size, board female gender, and board independence have effect on the financial performance of quoted commercial banks in Nigeria. Five (5) quoted commercial banks in Nigeria was examined, ranging from the years 2011 to 2020. Secondary data was used and obtained from the bank’s annual reports published in Nigeria Exchange Group. Cross-Sectional research design was used, and the method of data analysis used was panel multiple regression. Findings revealed that board independence has a significant impact on financial performance ( return on assets) of quoted commercial banks in Nigeria but shows negative relationship with financial performance ( return on assets) of quoted commercial banks, study further revealed that board size has a negative relationship with bank's financial performance (return on assets) but has significant value on the financial performance (return on assets) , findings also revealed that at least two female board members were represented in every corporate organization studied, female board membership has a positive relationship with banks' financial performance (Return on Assets), but shows insignificant value on financial performance (return on assets). The study concluded and recommended that, despite some of the independent variables shows insignificant values, Board independent, Board size, Board female gender mechanisms continue to be a critical component of corporate governance in achieving any organization's objectives, financial or otherwise.

The phenomenon of underpricing of shares in the Initial Public Offering (IPO) has become a critical issue in the Indonesian capital market, where the stock price on the first day of trading often far exceeds the initial offering price. This condition causes potential losses for issuers and indicates market inefficiency. The main objective of this study is to examine the effect of Corporate Governance, Board Diversity, and Underpricing on Initial Public Offering (IPO) companies listed on the Indonesia Stock Exchange for the period 2010–2024. A panel data regression model is used to determine the effect of these variables. The sample consists of companies conducting IPOs on the Indonesia Stock Exchange during the 2010–2024 period. The independent variables considered include Board Diversity (specifically Female Board Members (FB) and Board Member Age (AA)), Board Size (BS), Board Committee (BC), Board Independence (BI), Related Board Members (RBM), Board Member Position (BP), and Top Ten Shareholders (Top 10). Underpricing (UP) serves as the dependent variable. The analysis results indicate that female board members have a negative effect on underpricing, and Top Ten Shareholding also has a negative effect on underpricing.

Many previous studies found an inconsistent relationship between female board representation and corporate social responsibility performance. However, the underlying processes that produce the mixed relationship are still unclear. Building on stakeholder theories and social exchange theories, the author proposes that the moderating influence from the institutional environment can explain this mixed relationship. Specifically, the author suggests that organizations in countries with high democratic voice and accountability (i.e., more diverse regulatory regimes in such countries, which include more open and transparent voices from citizens) will strengthen the positive effect of female board representation on corporate social responsibility performance toward stakeholders who have less institutional power. The main contribution is to explicate the moderating effect of democratic voice and accountability that potentially produces the mixed relationship between female board representation and corporate social responsibility performance and reconcile inconclusive findings in the literature.