Does Board Gender Diversity Bring Better Financial and Governance Performances? An Empirical Investigation of Cases in Taiwan
Abstract
:1. Introduction
2. Literature Review and Hypotheses Development
2.1. Female Directors and Firms’ Financial Performance
2.2. Female Directors and Corporate Governance
3. Materials and Methods
3.1. Main Explanatory Variable—Gender Diversity
3.2. Interpreted Variable—Performance
3.3. Measurement Model
- The relationship between board gender diversity and the firm’s Tobin’s Q:Tobin’s Q = β0 + β1 FMBNUM + β2 FMBEDU + β3 FMBSNY+ β4
FMBNET + β5 FMBIND + β6 FMBCUR + e - The relationship between board gender diversity and the firm’s ROA:ROA = β0 + β1 FMBNUM + β2 FMBEDU + β3 FMBSNY+ β4
FMBNET + β5 FMBIND + β6 FMBCUR + e
3.4. Data and Sample
4. Results
4.1. Descriptive Statistics and Correlation
4.2. Effects of Board Gender Diversity on a Firm’s Governance and Performance
5. Discussion
6. Conclusions
Funding
Acknowledgments
Conflicts of Interest
References
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Companies’ TCGI Relative Rank | TCGI Rank | Codes Used in Model |
---|---|---|
Top 5% | A+ | 7 |
6–20% | A | 6 |
21–35% | B | 5 |
36–50% | C | 4 |
51–65% | C- | 3 |
66–80% | D | 2 |
81–100% | D- | 1 |
Unsuitable or data unavailable | NA | - |
Variable | Means | Standard Deviation | 1 | 2 | 3 | 4 | 5 | 6 | |
---|---|---|---|---|---|---|---|---|---|
1 | FMBNUM | 0.9315 | 1.013 | 1 | |||||
2 | FMBEDU | 0.0506 | 0.08681 | 0.573 ** | 1 | ||||
3 | FMBSNY | 7.3429 | 8.90 | 0.490 ** | 0.193 ** | 1 | |||
4 | FMBNET | 0.3942 | 0.58911 | 0.598 ** | 0.250 ** | 0.569 ** | 1 | ||
5 | FMBIND | 0.0306 | 0.06781 | 0.490 ** | 0.510 ** | 0.037 | 0.017 | 1 | |
6 | FMBCUR | 2.8822 | 4.2084 | 0.402 ** | 0.382 ** | 0.389 ** | 0.345 ** | 0.176 ** | 1 |
Regression | Multiple Regression | Ordinal Regression | |
---|---|---|---|
Variable | Tobin’s Q | ROA | TCGI |
Coefficient (p-Value) | Estimate (p-Value) | ||
FMBNUM | 0.39 (0.265) | −0.006 (0.863) | 0.132 (0.168) |
FMBEDU | 0.007 (0.841) | −0.037 (0.304) | −0.904 (0.297) |
FMBSNY | −0.43 (0.157) | −0.041 (0.177) | −0.018 * (0.027) |
FMBNET | 0.03 (0.330) | −0.025 (0.412) | −0.165 (0.236) |
FMBIND | 0.065 * (0.033) | 0.072 * (0.019) | 0.623 (0.57) |
FMBCUR | 0.017 (0.596) | −0.014 (0.65) | 0.093 *** (0.000) |
Intercept | 1.113 *** (0.000) | 7.993 *** (0.000) | - |
Adjusted R² | 0.003 | 0.004 | - |
Pseudo R-Square | - | - | Cox & Snell 0.042 Nagelkerke 0.043 McFadden 0.011 |
F_Value | 4.546 * | 5.549 * | - |
χ² (df) | - | - | 41.246 (6 df) *** |
Test of Parallel Lines | - | - | 0.297 |
# of obs. | 1065 | 1063 | 964 |
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Wang, Y.-H. Does Board Gender Diversity Bring Better Financial and Governance Performances? An Empirical Investigation of Cases in Taiwan. Sustainability 2020, 12, 3205. https://doi.org/10.3390/su12083205
Wang Y-H. Does Board Gender Diversity Bring Better Financial and Governance Performances? An Empirical Investigation of Cases in Taiwan. Sustainability. 2020; 12(8):3205. https://doi.org/10.3390/su12083205
Chicago/Turabian StyleWang, Yu-Hui. 2020. "Does Board Gender Diversity Bring Better Financial and Governance Performances? An Empirical Investigation of Cases in Taiwan" Sustainability 12, no. 8: 3205. https://doi.org/10.3390/su12083205
APA StyleWang, Y.-H. (2020). Does Board Gender Diversity Bring Better Financial and Governance Performances? An Empirical Investigation of Cases in Taiwan. Sustainability, 12(8), 3205. https://doi.org/10.3390/su12083205