IDEAS home Printed from https://ideas.repec.org/a/taf/apeclt/v23y2016i1p23-26.html
   My bibliography  Save this article

Simultaneous board and CEO diversity: does it increase firm value?

Author

Listed:
  • Richard Borghesi
  • Kiyoung Chang
  • Jamshid Mehran

Abstract

There remain open questions regarding whether board of director ethnic and gender diversity increases or decreases firm value. Additionally, prior research has yet to examine the value effects of a diverse board in the presence of a gender/ethnic minority CEO. Using the KLD social ratings database, we examine 13 000 firm-years and provide robust evidence that board diversity increases firm value. However, we also show that any value added via board diversity is nullified when a diverse board operates in the presence of a female and/or minority CEO. Results suggest that a significant portion of the value in board diversity may come from gender/ethnic differences between the board members and the CEO. One implication of our study is that when hiring a CEO or electing directors relative gender/ethnic make-up is important.

Suggested Citation

  • Richard Borghesi & Kiyoung Chang & Jamshid Mehran, 2016. "Simultaneous board and CEO diversity: does it increase firm value?," Applied Economics Letters, Taylor & Francis Journals, vol. 23(1), pages 23-26, January.
    • Handle: RePEc:taf:apeclt:v:23:y:2016:i:1:p:23-26
    DOI: 10.1080/13504851.2015.1047082
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/13504851.2015.1047082
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/13504851.2015.1047082?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Chengpeng Zhu & Muhammad Husnain & Saif Ullah & Muhammad Tasnim Khan & Waris Ali, 2022. "Gender Diversity and Firms’ Sustainable Performance: Moderating Role of CEO Duality in Emerging Equity Market," Sustainability, MDPI, vol. 14(12), pages 1-26, June.
    2. Nazliben, Kamil K. & Renneboog, Luc & Uduwalage, Emil, 2023. "CEO social power, board inclusiveness, and corporate performance after ethnic conflicts," Emerging Markets Review, Elsevier, vol. 56(C).
    3. Sari Pekkala Kerr & William R. Kerr, 2021. "Whose Job Is It Anyway? Coethnic Hiring in New US Ventures," Journal of Human Capital, University of Chicago Press, vol. 15(1), pages 86-127.
    4. Uduwalage, Emil, 2022. "Essays on corporate governance in Sri Lanka," Other publications TiSEM 9f4bd99f-e55d-471a-8aa1-4, Tilburg University, School of Economics and Management.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:apeclt:v:23:y:2016:i:1:p:23-26. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/RAEL20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.