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Democracy across Gender Diversity and Ethnicity of Middle Eastern SMEs: How Does Performance Differ?

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  • Charbel Salloum
  • George Jabbour
  • Catherine Mercier‐suissa

Abstract

This paper examines the relationship between boards of directors' demographic diversity and firms' financial performance. In particular, we highlight how women and ethnic minorities can affect Middle Eastern SMEs' financial performance. Using an unbalanced panel of 1,855 firm‐year observations of 371 boards of directors from nine Middle Eastern countries, our results support the positive impact of women and ethnic minority group members on Middle Eastern firms' performance. However, our evidence implies that when Western ethnic minority members increase, firms' performances tend to decrease, because these board members are appointed for regional and international board reputation legitimacy, personal business agendas, and links to the external corporate environment.

Suggested Citation

  • Charbel Salloum & George Jabbour & Catherine Mercier‐suissa, 2019. "Democracy across Gender Diversity and Ethnicity of Middle Eastern SMEs: How Does Performance Differ?," Journal of Small Business Management, Taylor & Francis Journals, vol. 57(1), pages 255-267, January.
    • Handle: RePEc:taf:ujbmxx:v:57:y:2019:i:1:p:255-267
    DOI: 10.1111/jsbm.12336
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    Cited by:

    1. Zahoor, Nadia & Zopiatis, Anastasios & Adomako, Samuel & Lamprinakos, Grigorios, 2023. "The micro-foundations of digitally transforming SMEs: How digital literacy and technology interact with managerial attributes," Journal of Business Research, Elsevier, vol. 159(C).
    2. Aolin Leng & Fuli Kang, 2022. "Impact of two-child policy on female employment and corporate performance: Empirical evidence from Chinese listed companies from 2010 to 2020," Palgrave Communications, Palgrave Macmillan, vol. 9(1), pages 1-13, December.

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