scholarly journals Mechanisms to promote board gender diversity in South Africa

2017 ◽  
Vol 17 (1) ◽  
Author(s):  
Suzette Viviers ◽  
Nadia Mans-Kemp ◽  
Rebecca Fawcett
Keyword(s):  
South Africa ◽  
Gender Diversity ◽  
Diversity Management ◽  
The Body ◽  
Gender Quotas ◽  
Snowball Sampling ◽  
International Trends ◽  
Change Mechanisms ◽  
Board Representation ◽  
Board Gender Diversity

Research purpose: Board gender diversity is gaining increasing attention globally and in South Africa. Although more women are serving on the boards of companies listed on the Johannesburg Stock Exchange (JSE), they only represent approximately one-fifth of all directors. This situation mirrors international trends. A review of the extant literature revealed three prominent mechanisms to increase the appointment of female directors, namely mandatory board gender quotas, voluntary targets and shareholder activism. The authors critically evaluated these three mechanisms with the aim of suggesting the most appropriate ones in the South African context.Motivation for the study: The study was undertaken given the paucity of comparative research on the three change mechanisms and the need to promote greater board gender diversity in South Africa.Research design: Judgement and snowball sampling were used to identify a sample of experienced local asset managers. Semi-structured personal interviews were conducted to gauge these individuals’ views on the applicability of these change mechanisms in South Africa. The qualitative data were analysed using thematic analysis.Key findings: Although the participants acknowledged the importance of board gender female board representation, none of them have engaged investee companies on the topic over the period 2011–2016. This study provides evidence that legislation is the least preferred mechanism to promote board gender diversity in South Africa. Voluntary targets and public pressure from shareholders might be more effective.Contribution: Whereas existing research mainly centres on the rationale for board gender diversity, this study goes a step further by investigating three prominent mechanisms to promote female board representation. A contribution is made to the body of knowledge on diversity management. Context-specific recommendations are offered.

scholarly journals How Does the Stock Market Value Female Directors? International Evidence

2020 ◽  
pp. 000765032094983
Author(s):  
Thomas R. Loy ◽  
Hendrik Rupertus
Keyword(s):  
Stock Market ◽  
Gender Diversity ◽  
Business Case ◽  
Gender Quotas ◽  
Long Term Effects ◽  
Stock Market Performance ◽  
International Setting ◽  
Board Representation ◽  
Board Gender Diversity

We analyze investors’ perception and long-term effects of board gender diversity on firms’ stock market performance in an international setting. Our results, controlling for the endogenous nature of board compositions, indicate that female board representation neither improves nor reduces firms’ long-term stock performance. Hence, we argue that it is imperative to go beyond the conventional thinking in terms of the business case for gender diversity and broaden the perspective also to incorporate societal and ethical aspects in the strive to board gender equality. Even more so, as our results show that it does not entail reduced shareholder value, which the literature on mandatory gender quotas commonly seems to suggest.

scholarly journals Gender diversity, ethnic diversity and employee performance in a South African higher education institution

2019 ◽  
Vol 17 ◽  
Author(s):  
Simbarashe Zhuwao ◽  
Hlanganipai Ngirande ◽  
Wiseman Ndlovu ◽  
Sam T. Setati
Keyword(s):  
Higher Education ◽  
South Africa ◽  
Ethnic Diversity ◽  
Diversity Training ◽  
Employee Performance ◽  
Gender Diversity ◽  
Diversity Management ◽  
Education Institution ◽  
Legal Compliance ◽  
Higher Education Institution

Orientation: Although there has been an improvement in workforce diversity in South Africa, gender and ethnicity issues such as discrimination, prejudice and sexual harassment prevail within organisations. This is because organisational leaders view diversity as a matter of legal compliance instead of as a value addition to organisational growth and profitability. Based on this, it is important for organisations to understand the economic side of diversity and not just be content with having such a workforce.Research purpose: This study investigated the effects of gender and ethnic diversity on the performance of employees in a selected higher education institution in South Africa.Motivation of the study: The study was conducted to determine whether gender and ethnic diversity influences the performance of employees in a higher education institution in South Africa. It is believed that by doing so, the study may assist organisational leaders to determine strategies and best practices that will create culture that is inclusive rather than exclusive.Research approach/design and method: A cross-sectional research design was used. A stratified random sample (n = 258) was chosen by dividing employees into homogeneous strata of academic and non-academic employees. A self-administered questionnaire was used to gather data. Pearson product moment correlation and multiple regression analysis were performed.Main findings: The results show that gender diversity and ethnic diversity are positively and significantly related to employee performance. The study recommends that higher education institutions implement effective diversity management policies and strategies to improve the effectiveness of gender and ethnic diversity towards the performance of employees.Practical/managerial implications: The study recommends organisations to embrace diversity and not just abide by the affirmative action policies and be satisfied with having such a workforce. To achieve this, effective diversity management programmes such as diversity training and mentoring programmes should be implemented to ensure that all employees are properly trained on diversity issues.Contribution/value add: First of all, the findings of this study will add to existing knowledge that will aid in the understanding of gender and ethnic diversity in general and its relevance to employee performance, which in turn leads to organisational performance. Furthermore, this study will be an eye opener to organisational leaders and employees as it will help them to begin to see that diversity is a blessing rather than a matter of legal compliance. It will help organisations to see the need for having diversity and confirm that employees can work together despite their differences.

Evaluating Board Candidates: A Threat-Contingency Model of Shareholder Dissent Against Female Director Candidates

2020 ◽  
Author(s):  
Arjun Mitra ◽  
Corinne Post ◽  
Steve Sauerwald
Keyword(s):  
Gender Diversity ◽  
Diversity Management ◽  
Institutional Pressures ◽  
Female Representation ◽  
Public Firms ◽  
Female Directors ◽  
Contingency Model ◽  
Women On Boards ◽  
Board Gender Diversity ◽  
Female Director

Given the growing corporate social responsibility (CSR) pressures to increase board gender diversity and the scrutiny afforded to firms that fail to appoint female directors, one may expect shareholders to vote with greater support for women (than for men) nominated to boards. However, diversity management research suggests that pressures to improve female representation in organizations and in leadership roles may also backfire. We propose a threat-contingency model of shareholder dissent against female director candidates to explain when shareholders will be more or less likely to dissent against female (relative to male) directors. Specifically, we advance CSR legitimacy threats and agency threats as conditions contextualizing shareholder dissent against female director candidates. Using a sample of 50,202 director elections at 1,104 public firms from 2003 to 2015, we find that female directors receive less dissent from shareholders; further, low female board representation intensifies this leniency as CSR legitimacy threats become more salient. However, when firm-related agency threats occur (e.g., firm underperformance and media controversies), shareholders’ leniency toward female director candidates dissipates, and when directors themselves present agency threats (e.g., director attendance problems and nonindependence), shareholders evaluate female directors more harshly than male directors. Underlining the relevance of our theory, our supplementary analyses show that shareholder dissent increases the probability of director turnover. These findings contribute to theory and research on women on boards, firm responses to institutional pressures, and shareholder dissent.

scholarly journals Board gender diversity and CSR in Lebanese banks: Rhetoric or action?

2017 ◽  
Vol 15 (1) ◽  
pp. 161-173 ◽  
Author(s):  
Mireille Chidiac El Hajj ◽  
Richard Abou Moussa ◽  
May Chidiac
Keyword(s):  
Gender Discrimination ◽  
Succession Planning ◽  
Management Practices ◽  
Gender Diversity ◽  
Diversity Management ◽  
Structured Interviews ◽  
Board Gender Diversity ◽  
Corporate Social ◽  
Board Level ◽  
Self Protection

This paper studies the lack of gender diversity at the board level in Lebanese banks following Corporate Social Responsibility (CSR) principles. It also addresses women’s reactions and behaviours towards this issue. The employed methodology is multi-modal and uses both quantitative and qualitative tools. The data was collected via survey and semi-structured interviews from 42 managers in 21 banks, which according to their websites, follow the CSR principles. The quantitative data revealed the relevant trends, while the qualitative data provided comprehensive explanations and in-depth understanding of the related issues. The findings of this paper shed light on the personal disappointment women interviewees felt about their lack of progress as well as their inability to assume a place on the board. They also address the contribution of the four main causes of board-level gender discrimination in Lebanese banks, namely the limitations imposed by the patriarchal culture, CEO succession planning, Human Resource (HR) diversity management practices, as well as those due to women themselves. They found that women react to these challenges by relying on their emotional intelligence. However, they tend to overestimate themselves for self-protection in the male dominated financial world. This study is not without its limitations, but it recommends further research concerning related policies and strategies of the administrative boards, legislating entities, and controlling entities, such as the Central Bank of Lebanon (Banque du Liban, BDL), in order to explicitly explore strategies that affect gender discrimination. This study creates value for banks that are genuinely interested in implementing CSR in order to benefit their corporate governance (CG) practices as well as the society at large.

Gender diversity in the Italian boardroom and firm financial performance

2017 ◽  
Vol 40 (1) ◽  
pp. 75-94 ◽  
Author(s):  
Niccolò Gordini ◽  
Elisa Rancati
Keyword(s):  
Financial Performance ◽  
Boards Of Directors ◽  
Panel Data Analysis ◽  
Gender Diversity ◽  
Gender Quotas ◽  
Content Type ◽  
Law System ◽  
Firm Financial Performance ◽  
Board Gender Diversity ◽  
The Right

Purpose This study aims to analyse the relationship between board gender diversity and firm financial performance in Italy, where the recently enforced Law 120/2011 prescribes gender quotas for boards of directors. Design/methodology/approach Panel data analysis was used to examine the gender diversity–firm financial performance relationship in an unbalanced panel of 918 Italian listed companies during the years 2011-2014. Findings Gender diversity, as measured by the percentage of women on a board and by the Blau and the Shannon indices, has a positive and significant effect on Tobin’s Q, while the presence of one or more women on the board per se has an insignificant effect on firm financial performance. Practical implications The results suggest that board gender diversity is not a simple “numbers game”, greater gender diversity may generate economic gains, greater gender diversity does not destroy shareholder value, investors do not penalize companies that increase female representation on their boards and Italian companies should focus their efforts on the right mix of men and women rather than on simply the presence of at least one woman on a board of directors. Originality/value Most articles on this topic use data from countries with a legal system based on common law; this paper analyses Italy, a country with a civil law system. This is almost certainly the first study to examine the effect of board gender diversity on firm financial performance in the Italian market.

Beyond Financial Reporting. Integrated Reporting and its determinants: Evidence from the context of European state-owned enterprises

2019 ◽  
pp. 43-72
Author(s):  
Giuseppe Nicolò ◽  
Gianluca Zanellato ◽  
Francesca Manes-Rossi ◽  
Adriana Tiron-Tudor
Keyword(s):  
Financial Reporting ◽  
Empirical Investigation ◽  
Gender Diversity ◽  
Accounting Standards ◽  
International Accounting Standards ◽  
Integrated Reporting ◽  
Financial Reports ◽  
The Public ◽  
Explanatory Factors ◽  
Board Gender Diversity

Integrated reporting (IR), which aims to overcome the limitations of both tradi-tional financial and stand-alone non-financial reports, has gained momentum as a single comprehensive tool merging financial and non-financial information. Initially conceived for private sector entities, IR is also establishing itself in the public sector context as a vehicle for transparency and accountability. This research offers an empirical investigation of IR practices in the State-Owned Enterprises (SOEs) context. More specifically, the paper investigates the levels of disclosure provided through IR by a sample of 34 European SOEs and explores the effects of potential explanatory factors. The results indicate a fair level of IR disclosure and a trend of reporting information already requested under international accounting standards. The findings also highlight that industry (basic materials and financials) and size positively influence the level of IR disclosure in a particularly strong way, while governance features (board size and board gender diversity) and the provision of external assurance do not exert any impact.

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