Boardroom Diversity and Innovation in the UAE Banks

International Journal of Innovation ManagementVol. 22, No. 03, 1850029 (2018), doi/10.1142/S1363919618500299

29 Pages Posted: 14 Aug 2018

Date Written: July 30, 2017

Abstract

Corporate governance carries strategic importance and should be addressed correctly by decision makers. Corporate finance literature suggests that diverse boards are a part of good corporate governance practice. However, it is not clear how diverse board characteristics might affect innovation and innovation search strategies. Utilizing the data from 25 banks listed in the UAE stock exchanges, this study evaluates the impact of boardroom diversity on firm innovativeness both before and after the drop in the oil prices. The results show that while gender and education do not significantly affect innovativeness of banks, having more experienced and independent board members enhances the innovation. The effect of experienced board members on innovation is more pronounced during the oil price drop period, while the effect of independent board members decrease after the drop in the oil prices.

Keywords: Board diversity, corporate governance, innovation, bank, UAE, oil crisis

Suggested Citation

Iren, Perihan and Tee, Kienpin, Boardroom Diversity and Innovation in the UAE Banks (July 30, 2017). International Journal of Innovation ManagementVol. 22, No. 03, 1850029 (2018), doi/10.1142/S1363919618500299. Available at SSRN: https://ssrn.com/abstract=3222617

Perihan Iren (Contact Author)

Zayed University ( email )

P.O. Box 4783
Abu Dhabi
United Arab Emirates

Kienpin Tee

Zayed University ( email )

P.O. Box 4783
Abu Dhabi
United Arab Emirates

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