The effect of the board diversity on firm performance: An empirical study on the UK-Reference-Cited by-同舟云学术

The effect of the board diversity on firm performance: An empirical study on the UK

Published:2021 Issue:3, special issue Volume:18 Page:337-347
ISSN:1810-3057
Container-title:Corporate Ownership and Control
language:en
Short-container-title:COC

Author:

EmadEldeen Rehab¹,Elbayoumi Ahmed F.¹^ORCID,Basuony Mohamed A. K.¹^ORCID,Mohamed Ehab K. A.²^ORCID

Affiliation:

1. The American University in Cairo

2. The German University in Cairo

Abstract

This study aims at filling existing research by examining the effect of board composition specially board diversity on firm performance using cross-sectional data from London Stock Exchange (FTSE 350) of non-financial companies with a total observations 3961 companies for the years 2000–2016. To the best of our knowledge, the contribution of this paper is to examine the effect of board diversity (age, gender, education, and nationality) of FTSE 100 and FTSE 250 on firm performance. Our results indicate that age diversity has a negative effect on firm performance, which means that young board members enhance and increase firm performance. Furthermore, education diversity has a negative effect on firm performance. On the other hand, gender diversity has positive effect on firm performance, so if companies increase the number of females in the board of directors, firm performance will increase. Ultimately, our result reveals that nationality diversity has a positive effect on firm performance.

Publisher

Virtus Interpress

Subject

General Business, Management and Accounting

Link

https://virtusinterpress.org/IMG/pdf/cocv18i3siart8.pdf

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