Social Diversity on Corporate Boards in a Country Torn by Civil War

55 Pages Posted: 2 Nov 2021 Last revised: 3 Nov 2021

See all articles by Kamil Korhan Nazliben

Kamil Korhan Nazliben

Tilburg University

Luc Renneboog

Tilburg University - Department of Finance; European Corporate Governance Institute (ECGI); Tilburg Law and Economics Center (TILEC)

Emil Uduwalage

Wayamba University of Sri Lanka

Multiple version iconThere are 2 versions of this paper

Date Written: October 15, 2021

Abstract

We examine how social diversity and inclusiveness in corporate boards affect corporate performance and monitoring in Sri Lanka, a country subject to decades of polarization, civil war, and even genocide. Barely a decade after the civil war, we find that board social diversity on the basis of ethnicity, language, religion, and gender of the board members is positively related to corporate performance, both in terms of stock market performance and accounting returns, and to corporate financial stability. We find no evidence that inter-personal conflicts or communication problems among board members negatively affect firm performance.

Keywords: Board of Directors, Social Diversity, Ethnic Diversity, Gender Bias, Corporate Performance, CEO Turnover, Corporate Governance, Board Meeting Attendance

JEL Classification: G33, G34

Suggested Citation

Nazliben, Kamil Korhan and Renneboog, Luc and Uduwalage, Emil, Social Diversity on Corporate Boards in a Country Torn by Civil War (October 15, 2021). European Corporate Governance Institute – Finance Working Paper No. 795/2021, Available at SSRN: https://ssrn.com/abstract=3954372

Kamil Korhan Nazliben

Tilburg University ( email )

P.O. Box 90153
Tilburg, 5000 LE
Netherlands

Luc Renneboog (Contact Author)

Tilburg University - Department of Finance ( email )

P.O. Box 90153
Warandelaan 2
5000 LE Tilburg
Netherlands
+13 31 466 8210 (Phone)
+13 31 466 2875 (Fax)

European Corporate Governance Institute (ECGI) ( email )

c/o the Royal Academies of Belgium
Rue Ducale 1 Hertogsstraat
1000 Brussels
Belgium

Tilburg Law and Economics Center (TILEC) ( email )

Warandelaan 2
Tilburg, 5000 LE
Netherlands

Emil Uduwalage

Wayamba University of Sri Lanka ( email )

Kuliyapitiya
Sri Lanka

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
166
Abstract Views
774
Rank
275,231
PlumX Metrics