Board gender diversity and firms’ equity risk

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dc.contributor.author Jizi, Mohammad Issam
dc.contributor.author Nehme, Rabih
dc.date.accessioned 2020-12-03T10:21:22Z
dc.date.available 2020-12-03T10:21:22Z
dc.date.copyright 2017 en_US
dc.date.issued 2020-12-03
dc.identifier.issn 2040-7149 en_US
dc.identifier.uri http://hdl.handle.net/10725/12338 en_US
dc.description.abstract Purpose There is a growing attention toward the importance of women’s participation on corporate boards in enhancing board governance and decision-making quality. The literature lacks sufficient empirical evidence on the relationship between women’s involvement on boards and firms’ risk. The purpose of this paper is to investigate the influence of board gender diversity on firms’ risk. Design/methodology/approach This paper explores the influence of women’s participation on corporate boards on firms’ stock return volatility. The examined firms are all non-financial firms listed on the FTSE 350 index between 2008 and 2013. The Bloomberg database is used to collect the needed variables. Panel data are employed through a regression model to estimate relationships. One-step Arellano and Bond and the generalized method of moments are used to control for reverse causality and the existence of endogenous variables. Findings The results suggest that women’s participation on corporate boards favorably impacts firms’ risk by reducing firms’ stock return volatility. The authors also find that the influence of women on reducing stock return volatility is higher in four particular industries recognized by their close proximity to consumers (consumer goods, consumer services, health care, and utilities). Originality/value The study contributes to the growing literature on women on boards and offers solid empirical evidence of the correlation between board gender diversity and firms’ risk. The empirical results provide economical and statistical validity to the “voluntary business-led” approach of Davies reports and to the recommendation by the UK Corporate Governance Code 2014 on the favorable influence of board gender diversity for effective functioning. en_US
dc.language.iso en en_US
dc.title Board gender diversity and firms’ equity risk en_US
dc.type Article en_US
dc.description.version Published en_US
dc.author.school SOB en_US
dc.author.idnumber 200201121 en_US
dc.author.idnumber 199710210 en_US
dc.author.department Hospitality Management And Marketing en_US
dc.description.embargo N/A en_US
dc.relation.journal Equality, Diversity and Inclusion en_US
dc.journal.volume 36 en_US
dc.journal.issue 7 en_US
dc.article.pages 590-606 en_US
dc.keywords Board gender diversity en_US
dc.keywords FTSE 350 firms en_US
dc.keywords Stock return volatility en_US
dc.identifier.doi https://doi.org/10.1108/EDI-02-2017-0044 en_US
dc.identifier.ctation Jizi, M. I., & Nehme, R. (2017). Board gender diversity and firms’ equity risk. Equality, Diversity and Inclusion: An International Journal, 36(7), 590-606. en_US
dc.author.email mohammad.jizi@lau.edu.lb en_US
dc.author.email rabih.nehme@lau.edu.lb en_US
dc.identifier.tou http://libraries.lau.edu.lb/research/laur/terms-of-use/articles.php en_US
dc.identifier.url https://www.emerald.com/insight/content/doi/10.1108/EDI-02-2017-0044/full/html en_US
dc.orcid.id https://orcid.org/0000-0002-1911-8215 en_US
dc.orcid.id https://orcid.org/0000-0002-1028-6001 en_US
dc.author.affiliation Lebanese American University en_US

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