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Board Age and Gender Diversity: A Test of Competing Linear and Curvilinear Predictions

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  • Muhammad Ali

    ()

  • Yin Ng

    ()

  • Carol Kulik

    ()

Abstract

The inconsistent findings of past board diversity research demand a test of competing linear and curvilinear diversity–performance predictions. This research focuses on board age and gender diversity, and presents a positive linear prediction based on resource dependence theory, a negative linear prediction based on social identity theory, and an inverted U-shaped curvilinear prediction based on the integration of resource dependence theory with social identity theory. The predictions were tested using archival data on 288 large organizations listed on the Australian Securities Exchange, with a 1-year time lag between diversity (age and gender) and performance (employee productivity and return on assets). The results indicate a positive linear relationship between gender diversity and employee productivity, a negative linear relationship between age diversity and return on assets, and an inverted U-shaped curvilinear relationship between age diversity and return on assets. The findings provide additional evidence on the business case for board gender diversity and refine the business case for board age diversity. Copyright Springer Science+Business Media Dordrecht 2014

Suggested Citation

  • Muhammad Ali & Yin Ng & Carol Kulik, 2014. "Board Age and Gender Diversity: A Test of Competing Linear and Curvilinear Predictions," Journal of Business Ethics, Springer, vol. 125(3), pages 497-512, December.
  • Handle: RePEc:kap:jbuset:v:125:y:2014:i:3:p:497-512
    DOI: 10.1007/s10551-013-1930-9
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    References listed on IDEAS

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    Cited by:

    1. repec:kap:jbuset:v:142:y:2017:i:2:d:10.1007_s10551-015-2759-1 is not listed on IDEAS
    2. Eunjung Hyun & Daegyu Yang & Hojin Jung & Kihoon Hong, 2016. "Women on Boards and Corporate Social Responsibility," Sustainability, MDPI, Open Access Journal, vol. 8(4), pages 1-26, March.
    3. repec:bla:acctfi:v:57:y:2017:i:2:p:429-463 is not listed on IDEAS
    4. Anne Marie Ward & John Forker, 2017. "Financial Management Effectiveness and Board Gender Diversity in Member-Governed, Community Financial Institutions," Journal of Business Ethics, Springer, vol. 141(2), pages 351-366, March.
    5. Talavera, Oleksandr & Yin, Shuxing & Zhang, Mao, 2016. "Managing the diversity: board age diversity, directors’ personal values, and bank performance," MPRA Paper 71927, University Library of Munich, Germany.
    6. repec:kap:jbuset:v:147:y:2018:i:3:d:10.1007_s10551-015-2956-y is not listed on IDEAS
    7. repec:gam:jsusta:v:8:y:2016:i:4:p:300:d:66430 is not listed on IDEAS
    8. repec:spr:intemj:v:14:y:2018:i:1:d:10.1007_s11365-017-0473-4 is not listed on IDEAS

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