TY - JOUR
T1 - Board Gender Diversity as a CSR tool and financial performance in China.
AU - Amadi, Chibuzo
AU - Guo, Weitong
AU - Ode-Ichakpa, Inalegwu
PY - 2020
Y1 - 2020
N2 - Using multivariate approach, this study investigates the effect of female representation on boards on the practice of corporate social responsibility (CSR) and financial performance in China. The indicators include average age of female board members, proportion of female board members, TOBIN Q, asset size, and leverage. Results of fixed effects models show that the relationship between female directors and CSR, CSR and Tobin’s Q, and female directors and Tobin’s Q are positive. These findings support the upper-echelon and stake holder theories. The results suggest that firms, with gender diverse boards, are more likely to outperform other firms in the areas of social and financial performance. An implication for society and government might be to enact policies and incentives as well as adopt moral suasion as a means to encourage firms, irrespective of size, to embrace gender diversity through increased female board representation, as it could prove to be a veritable CSR tool to boost their public image, long run performance, and benefit society.
AB - Using multivariate approach, this study investigates the effect of female representation on boards on the practice of corporate social responsibility (CSR) and financial performance in China. The indicators include average age of female board members, proportion of female board members, TOBIN Q, asset size, and leverage. Results of fixed effects models show that the relationship between female directors and CSR, CSR and Tobin’s Q, and female directors and Tobin’s Q are positive. These findings support the upper-echelon and stake holder theories. The results suggest that firms, with gender diverse boards, are more likely to outperform other firms in the areas of social and financial performance. An implication for society and government might be to enact policies and incentives as well as adopt moral suasion as a means to encourage firms, irrespective of size, to embrace gender diversity through increased female board representation, as it could prove to be a veritable CSR tool to boost their public image, long run performance, and benefit society.
KW - CSR
KW - Board Diversity
KW - Upper-echelon theory
KW - Stakeholder theory
KW - fixed effect
M3 - Article
JO - Corporate Governance: An International Review
JF - Corporate Governance: An International Review
SN - 0964-8410
ER -