Linking firm performance with board diversity: A literature review

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...

Gender Diversity in Management Positions and Organizational Performance: A Review of Literature

In this term paper, diversity in management positions and organizational performance is analyzed using gender diversity as a mediating role. The analysis is done based on the review of related literature. An organization’s success and competitiveness depends upon its ability to embrace diversity and realize the benefits. The success and failure of an organization is also linked with its leaders...

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

Board of Diretor Education and Firm Performance: A Dynamic Approach

I examine the relationship between board of director’s (BoD) education and firm performance on a European dataset over the period from 1999 to 2013, employing a well-developed dynamic panel generalized method of moments (GMM) estimator to alleviate endogeneity issue in corporate governance study. I find no correlation between BoD education and firm’s return on asset, after accounting for endoge...