Boards’ Gender Diversity and Firm Performance Before and after the Egyptian Revolution

45 Pages Posted: 3 Nov 2017

See all articles by Melsa Ararat

Melsa Ararat

Sabanci University - School of Management, Corporate Governance Forum

Moataz El-Helaly

Olayan School of Business, The American University of Beirut

Nermeen F. Shehata

The American University in Cairo

Date Written: July 1, 2017

Abstract

Given the endogenous and contingent nature of firms’ governance choices, it is not surprising that the results of prior studies investigating the association between board attributes and firm performance are mixed. In this paper, we exploit the presence of an exogenous shock represented in the Egyptian revolution in 2011 to assess the effect of gender diversity in the board on firm performance. Our results show that gender diverse firms perform better when their environment becomes more complex and unpredictable. The presence of foreign directors on the other hand has the opposite effect. Our results challenge the notion that diversity attributes are additive, and underscore the benefits of gender diversity in more complex and unpredictable contexts. Overall, we provide evidence that board structure/diversity-performance relationship is contingent upon the social, political and economic context, and changes in response to external shocks.

Keywords: corporate governance, board diversity, Egypt, firm performance, gender diversity, exogenous shocks, revolution

JEL Classification: G18, G30, G34, G39

Suggested Citation

Ararat, Melsa and El-Helaly, Moataz and Shehata, Nermeen F., Boards’ Gender Diversity and Firm Performance Before and after the Egyptian Revolution (July 1, 2017). Available at SSRN: https://ssrn.com/abstract=3063867 or http://dx.doi.org/10.2139/ssrn.3063867

Melsa Ararat

Sabanci University - School of Management, Corporate Governance Forum ( email )

Orhanli Tuzla
Istanbul, Orhanli, Tuzla 34956
Turkey
+90-2164839710 (Phone)
+90-2164839715 (Fax)

HOME PAGE: http://www.sabanciuniv.edu

Moataz El-Helaly

Olayan School of Business, The American University of Beirut ( email )

Riad El Solh
Beirut
Lebanon

Nermeen F. Shehata (Contact Author)

The American University in Cairo ( email )

AUC Avenue
P.O. Box 74, New Cairo 11835
Cairo
Egypt

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