Board Cultural Diversity and Firm Performance

1 Board Diversity and Firm Performance Volatility

Diverse directors may have diverse preferences over firms’ policies or even objectives. As shown by Arrow (1951), diverse individual preferences may fail to univocally aggregate in collective preferences and may consequently lead to arbitrary and volatile decisions. Using the board of directors as a laboratory, we test whether diversity leads to higher performance volatility. We show that firms...

Demographic Diversity in the Boardroom: Mediators of the Board Diversity–Firm Performance Relationship

Whereas the majority of research on board diversity explores the direct relationship between racial and gender diversity and firm performance, this paper investigates mediators that explain how board diversity is related to firm performance. Grounded in signalling theory and the behavioural theory of the firm, we suggest that this relationship operates through two mediators: firm reputation and...

How age diversity on the Board of Directors affects Firm Performance

Top Management Team’s Cultural Diversity and Firm Performance: the Mediating Role of Ambidextrous Orientation

This paper examines the influences of cultural diversity in the top management team (TMT) on organizational performance. The link between the two is investigated through the path dependency model, where firm ambidextrous orientation serves an intervening role. The results of the study suggest that TMT cultural diversity will have a negative influence on firm performance due to the decreasing de...

Board Monitoring and Firm performance: Controlling for Endogeneity and Multicollinearity

Purpose of this study is to investigate the relation between board monitoring and firm performance after controlling the endogeneity and multicollinearity problem that exist in most corporate governance research. Prior studies failed to establish any significant relationship between board monitoring and firm performance because of not properly control for endogeneity and multicollinearity probl...