Effect of Gender Diversity on the Relationship of Managerial Ability and Economic Performance
DOI:
https://doi.org/10.22561/cvr.v36i1.8415Keywords:
Intersectionality, Managerial skill, Economic performance, Gender diversity, Board of directorsAbstract
Through the lens of Intersectionality Theory, this study examined the impact of gender diversity on the board of directors on the relationship between managerial ability and economic performance. Utilizing data from five countries – Germany, France, Italy, the United Kingdom, and Brazil – spanning European and South American continents, regression models were employed to analyze the proposed relationships in the research. The findings revealed that board diversity is a determining factor in explaining economic performance, and a more diverse board modifies the effect of the relationship between managerial ability and the economic performance of companies. Furthermore, the effects found varied among the analyzed countries, with positive effects in Brazil and the United Kingdom, indicating that the more diversified the board of directors, the better the economic performance of companies. In contrast, in Germany, France, and Italy, the effects were negative, suggesting that higher diversity on the board of directors corresponds to lower economic performance of companies. Consequently, these results contribute to discussions regarding gender diversity and managerial ability, highlighting that these are two elements that significantly impact the economic performance of organizations. However, their effects on company performance remain contradictory among the analyzed countries, prompting further research.
References
Adams, R. B., & Ferreira, D. (2009). Women in the boardroom and their impact on governance and performance. Journal of Financial Economics, 94(2), 291-309. https://doi.org/10.1016/j.jfineco.2008.10.007
Ahern, K. R., & Dittmar, A. K. (2012). The changing of the boards: The impact on firm valuation of mandated female board representation. The Quarterly Journal of Economics, 127(1), 137-197. https://doi.org/10.1093/qje/qjr049
Alan, N. S., Bardos, K. S., & Shelkova, N. Y. (2020). CEO-to-employee pay ratio and CEO diversity. Managerial Finance. https://doi.org/10.1108/MF-03-2020-0107
Amran, A., Lee, S. P., & Devi, S. S. (2014). The influence of governance structure and strategic corporate social responsibility toward sustainability reporting quality. Business Strategy and the Environment, 23(4), 217-235. https://doi.org/10.1002/bse.1767
Bauer, G. R., Churchill, S. M., Mahendran, M., Walwyn, C., Lizotte, D., & Villa-Rueda, A. A. (2021). Intersectionality in quantitative research: A systematic review of its emergence and applications of theory and methods. SSM-population health, 14, 100798. https://doi.org/10.1016/j.ssmph.2021.100798
Bogdan, V., Popa, D. N., Beleneşi, M., Rus, L., & Scorțe, C. M. (2023). Gender Diversity and Business Performance Nexus: A Synoptic Panorama Based on Bibliometric Network Analysis. Sustainability, 15(3), 1801. https://doi.org/10.3390/su15031801
Catalyst, A. (2018). 2007 catalyst census: Financial post 500 women board directors. Catalyst. Recuperado 09 de Janeiro de 2025 em: https://www.catalyst.org/research/2007-catalyst-census-financial-post-500-women-board-directors-methodology/
Cataylst. (2019). Pyramid: Women in S&P 500 Companies. Recuperado 09 de Janeiro de 2025 em: https://www.catalyst.org/research/ women-in-sp-500-companies/
Cheng, L. T., Chan, R. Y., & Leung, T. Y. (2010). Management demography and corporate performance: Evidence from China. International Business Review, 19(3), 261-275. https://doi.org/10.1016/j.ibusrev.2009.12.007
Crenshaw K. (1989). Demarginalizing the intersection of race and sex: A black feminist critique of antidiscrimination doctrine, feminist theory and antiracist politics. University of Chicago Legal Forum, 1989, 139–167.
Demerjian, P., Lev, B., & McVay, S. (2012). Quantifying managerial ability: A new measure and validity tests. Management Science, 58(7), 1229-1248. https://doi.org/10.1287/mnsc.1110.1487
Dennissen, M., Benschop, Y., & van den Brink, M. (2020). Rethinking diversity management: An intersectional analysis of diversity networks. Organization Studies, 41(2), 219-240. https://doi.org/10.1177/0170840618800103
Dixon‐Fowler, H. R., Ellstrand, A. E., & Johnson, J. L. (2013). Strength in numbers or guilt by association? Intragroup effects of female chief executive announcements. Strategic Management Journal, 34(12), 1488-1501. https://doi.org/10.1002/smj.2076
Fávero, L. P., & Belfiore, P. (2017). Manual de análise de dados: estatística e modelagem multivariada com Excel®, SPSS® e Stata®. Elsevier Brasil.
Fernandes, C. D. A., & Machado, M. A. V. (2023). Conselho de administração, diversidade de gênero e monitoramento. Revista de Administração de Empresas, 63, e2021-0753. https://doi.org/10.1590/S0034-759020230303
Fernando, G. D., Jain, S. S., & Tripathy, A. (2020). This cloud has a silver lining: Gender diversity, managerial ability, and firm performance. Journal of Business Research, 117, 484-496. https://doi.org/10.1016/j.jbusres.2020.05.042
Forte, H. C., Silva, L. K. S., & de Abreu, M. C. S. (2021). Efeito da estrutura do conselho de administração na evidenciação de práticas ambientais e sociais em empresas brasileiras. Revista Universo Contábil, 16(1), 119-135. http://dx.doi.org/10.4270/ruc.2020106
Gomez-Mejia, L., Baixauli-Soler, J. S., Belda-Ruiz, M., & Sanchez-Marin, G. (2019). CEO stock options and gender from the behavioral agency model perspective: Implications for risk and performance. Management Research: Journal of the Iberoamerican Academy of Management, 17(1), 68-88. https://doi.org/10.1108/MRJIAM-05-2018-0836
Gordini, N., & Rancati, E. (2017). Gender diversity in the Italian boardroom and firm financial performance. Management Research Review, 40(1), 75-94. https://doi.org/10.1108/MRR-02-2016-0039
Hasan, M. M. (2018). Readability of narrative disclosures in 10-K reports: does managerial ability matter?. European Accounting Review, 29(1), 147-168. https://doi.org/10.1080/09638180.2018.1528169
Instituto Brasileiro de Governança Corporativa. (2016). Perfil dos Conselhos de Administração. Recuperado 09 de Janeiro de 2025 em: https://conhecimento.ibgc.org.br/Lists/Publicacoes/Attachments/23491/Pesquisa_Perfil_Conselhos_2016.pdf
Inam Bhutta, A., Sheikh, M. F., Munir, A., Naz, A., & Saif, I. (2021). Managerial ability and firm performance: Evidence from an emerging market. Cogent Business & Management, 8(1), 1879449. https://doi.org/10.1080/23311975.2021.1879449
Kakabadse, N. K., Figueira, C., Nicolopoulou, K., Hong Yang, J., Kakabadse, A. P., & Özbilgin, M. F. (2015). Gender diversity and board performance: Women's experiences and perspectives. Human Resource Management, 54(2), 265-281. https://doi.org/10.1002/hrm.21694
Lara, J. M. G., Osma, B. G., Mora, A., & Scapin, M. (2017). The monitoring role of female directors over accounting quality. Journal of Corporate Finance, 45, 651-668. https://doi.org/10.1016/j.jcorpfin.2017.05.016
Liu, Y., Wei, Z., & Xie, F. (2014). Do women directors improve firm performance in China?. Journal of Corporate Finance, 28, 169-184. https://doi.org/10.1016/j.jcorpfin.2013.11.016
McConnell, E. A., Janulis, P., Phillips II, G., Truong, R., & Birkett, M. (2018). Multiple minority stress and LGBT community resilience among sexual minority men. Psychology of Sexual Orientation and Gender Diversity, 5(1), 1. https://doi.org/10.1037/sgd0000265
Melmusi, Z., Ilona, D., & Kurniawan, A. (2019). Do diversity of directors improve market performance. KnE Social Sciences, 125-136. https://doi.org/10.18502/kss.v3i14.4303
Mik‐Meyer, N. (2015). Gender and disability: Feminizing male employees with visible impairments in Danish work organizations. Gender, Work & Organization, 22(6), 579-595. https://doi.org/10.1111/gwao.12107
Mohan, N. (2014). A review of the gender effect on pay, corporate performance and entry into top management. International Review of Economics & Finance, 34, 41-51. https://doi.org/10.1016/j.iref.2014.06.005
Nadeem, M., Zaman, R., & Saleem, I. (2017). Boardroom gender diversity and corporate sustainability practices: Evidence from Australian Securities Exchange listed firms. Journal of Cleaner Production, 149, 874-885. https://doi.org/10.1016/j.jclepro.2017.02.141
Nadeem, M., Suleman, T., & Ahmed, A. (2019). Women on boards, firm risk and the profitability nexus: Does gender diversity moderate the risk and return relationship?. International Review of Economics & Finance, 64, 427-442. https://doi.org/10.1016/j.iref.2019.08.007
Nadeem, M. (2020). Does board gender diversity influence voluntary disclosure of intellectual capital in initial public offering prospectuses? Evidence from China. Corporate Governance: An International Review, 28(2), 100-118. https://doi.org/10.1111/corg.12304
Nascimento, A. C., do Prado, N. B., Belli, M. M., Gaio, L. E., & Lucas, A. C. (2022). A influência da diversidade de gênero no valor de mercado: um estudo comparativo entre empresas europeias e latino-americanas. Contabilidade Vista & Revista, 33(1), 195–217. https://doi.org/10.22561/cvr.v33i1.7114
Nezlobin, A. A., Sloan, R. G., & Zha Giedt, J. (2022). Construct validity in accruals quality research. The Accounting Review, 97(5), 377-398. https://doi.org/10.2308/TAR-2019-0213
Park, S. J., & Nwaeze, E. T. (2023). Earnings and cash flow comparability in executive compensation. Asia-Pacific Journal of Accounting & Economics, 30(1), 72-95. https://doi.org/10.1080/16081625.2021.1953389
Pathan, S., & Faff, R. (2013). Does board structure in banks really affect their performance?. Journal of Banking & Finance, 37(5), 1573-1589. https://doi.org/10.1016/j.jbankfin.2012.12.016
Post, C., & Byron, K. (2015). Women on boards and firm financial performance: A meta-analysis. Academy of management Journal, 58(5), 1546-1571. https://doi.org/10.5465/amj.2013.0319
Sila, V., Gonzalez, A., & Hagendorff, J. (2016). Women on board: Does boardroom gender diversity affect firm risk?. Journal of Corporate Finance, 36, 26-53. https://doi.org/10.1016/j.jcorpfin.2015.10.003
Tatli, A., & Özbilgin, M. F. (2012). An emic approach to intersectional study of diversity at work: A Bourdieuan framing. International Journal of Management Reviews, 14(2), 180-200. https://doi.org/10.1111/j.1468-2370.2011.00326.x
Thomas, C., MacMillan, C., McKinnon, M., Torabi, H., Osmond-McLeod, M., Swavley, E., ... & Doyle, K. (2021). Seeing and overcoming the complexities of intersectionality. Challenges, 12(1), 5. https://doi.org/10.3390/challe12010005
Thompson, J. D. (2003). Organizations in action: Social science bases of administrative theory. Transaction publishers. https://doi.org/10.2307/3556682
Wahid, A. S. (2019). The effects and the mechanisms of board gender diversity: Evidence from financial manipulation. Journal of Business Ethics, 159(3), 705-725. https://doi.org/10.1007/s10551-018-3785-6
Willows, G., & van der Linde, M. (2016). Women representation on boards: A South African perspective. Meditari Accountancy Research, 24(2), 211-225. https://doi.org/10.1108/MEDAR-01-2016-0001
Winker, G., & Degele, N. (2011). Intersectionality as multi-level analysis: Dealing with social inequality. European Journal of Women’s Studies, 18(1), 51-66. https://doi.org/10.1177/1350506810386084
Wintoki, M. B., Linck, J. S., & Netter, J. M. (2012). Endogeneity and the dynamics of internal corporate governance. Journal of Financial Economics, 105(3), 581-606. https://doi.org/10.1016/j.jfineco.2012.03.005
Downloads
Published
How to Cite
Issue
Section
License
A submissão do texto para avaliação implica no compromisso de que o material não seja submetido a um outro periódico nacional ou internacional e autoriza, caso aprovado, a sua publicação.
Os artigos publicados são de responsabilidade dos autores não traduzindo, necessariamente, a opinião da revista. A reprodução dos artigos, total ou parcial, pode ser feita desde que citada esta fonte.
Considerando que o(s) autor(es) do texto concorda(m) com a sua publicação, caso o mesmo seja aprovado pela revista, sem que disso lhe seja devido qualquer remuneração, reembolso ou compensação de qualquer natureza, a Revista Contabilidade Vista & Revista através do Departamento de Ciências Contábeis da Faculdade de Ciências Econômicas da Universidade Federal de Minas Gerais, detém todos os direitos autorais dos textos publicados, conforme a legislação brasileira vigente.
Os direitos autorais para artigos publicados nesta revista são do autor, com direitos de primeira publicação para a revista. Em virtude de aparecerem nesta revista de acesso público, os artigos são de uso gratuito, com atribuições próprias, em aplicações educacionais e não-comerciais. A revista permitirá o uso dos trabalhos publicados para fins não-comerciais, incluindo direito de enviar o trabalho para bases de dados de acesso público.