|
|
|
|
||||
|
||||
The Diversity of Corporate Board Committees and Financial PerformanceDavid CarterOklahoma State University - Stillwater - Department of Finance Frank P. D'SouzaLoyola University - Sellinger School of Business and Management Betty J. SimkinsOklahoma State University - Stillwater - Department of Finance W. Gary SimpsonOklahoma State University - Stillwater - Department of Finance March 1, 2008 Abstract: We examine the relationship between the gender and ethnic minority diversity of the board of directors and the financial performance of the firm. The research is unique because we analyze the diversity of important board committees to gain greater insight into the way diversity affects board functions and shareholder value. Our sample consists of all firms listed in the Fortune 500 over the period 1998-2002 which yields a panel of data with approximately 2,000 firm years. The results of three-stage least-squares estimation support the conclusion that board diversity has a positive effect on financial performance as measured by Tobin's q. The evidence on board committees indicates that gender diversity has a positive effect on financial performance primarily through the audit function of the board and ethnic diversity impacts financial performance through all three functions of the board we investigate, audit, executive compensation, and director nomination.
Number of Pages in PDF File: 41 Keywords: corporate governance, board committees, diversity, financial performance JEL Classification: G34 working papers seriesDate posted: March 24, 2008Suggested CitationContact Information
|
|
|||||||||||||||||||||||||||||||||
© 2013 Social Science Electronic Publishing, Inc. All Rights Reserved.
FAQ
Terms of Use
Privacy Policy
Copyright
This page was processed by apollo3 in 0.406 seconds
