RT info:eu-repo/semantics/article
T1 Types of director, board diversity and firm performance
A1 Fernández Temprano, Miguel Alejandro
A1 Tejerina-Gaite, Fernando
K1 Firm performance, Board diversity, Outside directors, Executive directors.
AB Purpose – The purpose of this paper is to investigate the effect of board diversity on firmperformance.Design/methodology/approach – From different theories perspective and based on data collectedabout the composition of board of directors in Spanish non-financial firms, the paper determinesstatistically the relationship between board diversity and performance for the period 2005-2015.Findings – The results reveal differences between inside and outside board members in terms of theperformance impact of board diversity. Thus, while age diversity has a positive effect on firmperformance in both, insider and outsider directors, nationalitymix is associated with higher performancelevels just in the case of insiders. In addition, educational diversity seems to have a negative effect onperformance for supervisory directors. On the contrary, the authors do not find any evidence about apossible influence of gender diversity on performance.Research limitations/implications – The authors are just taking some board’s attributes, but theconcept of board diversity is a very wide one. In this regard, less traditionalmethodologies that do not relyon extant archival databases may be necessary to get a deeper understanding of the impact of boardson firm’s performance.Practical implications – This study demonstrates that the claim of ‘‘one size fits all’’ often implicitlystated by regulators and advisors is misleading. Board’s attributes analysis over the boardroom as awhole turns out in too simplistic conclusions. This is particularly important for regulators: a rigorousanalysis should be performed before including general recommendations about, for instance, the age orthe board tenure in corporate governance codes.Social implications – As diverse boards contribute to a greater social value, the paper analyses theperformance consequences of demographic diversity.Originality/value – The paper analyses the firm performance impact of diversity among insiderdirectors, on the one hand, and outsider directors, on the other. Although there is a clear differencebetween the roles assigned to insider and outsider directors, to the authors’ knowledge, there has beenno analysis of the firm performance effect of the diversity of each type of director using the same sampleandmethodology.
PB Emerald Publishing
SN 1472-0701
YR 2020
FD 2020
LK https://uvadoc.uva.es/handle/10324/64959
UL https://uvadoc.uva.es/handle/10324/64959
LA eng
NO Corporate Governance, Vol. 20(2), p. 324-342.
NO Producción Científica
DS UVaDOC
RD 24-dic-2024