Literature Review Women on boards and in TMTS and firm performance 23 positive effects of women on boards is required Various positive effects with regard to board fun ctioning and work discipline as well as to gender composition of internal top management or to company reputation are proven However these are opposed by several negative effects Female directors appear to have a notable impact on board inputs and company outcomes In particu lar gender board composition is positively related to board effectiveness Adams Ferreira 2009 Nielsen Huse 2010 The impact of female board members depends on the type of task performed Nielsen and Huse 2010 find a positive direct rela tionship between female representation on board and board strategic control but no direct relation ship with board operational control Thus women influence board processes in such a way that board effectiveness in strategic control is enhanced Ni elsen Huse 2010 One of these board processes through which women influence board effective ness is the use of board development activities such as board work instructions or evaluations Furthermore female directors reduce the level of board conflict and thus improve effectiveness the authors point out that board processes might be more important than board composition In a sample of US firms Adams Ferreira 2009 find that female directors have better attendance records than male directors and the higher their presence on boards the fewer the attendance pro blems of their male colleagues Women are more likely to join monitoring related committees par ticularly to audit nominating and corporate gover nance committees By contrast they are less likely to sit on compensation committees The results suggest that gender diverse boards are tougher monitors and have stronger governance Adams Ferreira 2009 highlight that the female direc tors impact is comparable to that of independent directors described in governance theory see also Lucas Pérez et al 2015 Nielsen Huse 2010 The relation between the variability of stock re turns the structure of director compensation and the gender diversity of corporate boards is subject to an investigation by Adams and Ferreira 2004 On the basis of a cross sectional sample of boards of directors of 1 024 publicly traded firms the authors find several significant correlations First companies that experience more variability in their stock returns have fewer women on their boards of directors Second firms with more diverse boards provide their directors with more performance re lated payments Third companies with more diver se boards have higher numbers of board meetings In an analysis of a sample including 120 compa nies listed on the Spanish stock exchange during the years 2004 to 2009 Lucas Pérez et al 2015 strive to show how gender diversity can determine governance effectiveness Taking into considerati on arguments from various theories they exami ne two possible forms of gender diversity s firm effectiveness first how it affects top managers compensation and second how it transforms board characteristics that are crucial for the board s moni toring effectiveness such as composition structure size and functioning Lucas Pérez et al 2015 In proving the positive relationship between gender diversity and performance related pay for top ma nagers they confirm the earlier results of Adams and Ferreira 2004 Based on their evidence they further suggest that higher female representation on boards leads to a greater variety of knowledge skills and decision making criteria They conclude that gender diverse groups may be particularly sui table to solve problems with potential for dispu tes This conclusion is in accordance with Heffernan saying that group think may be avoided through composing a heterogeneous board A diverse board Women on boards and in TMTs and firm performance

Vorschau DIRK-Forschungsreihe Band 21 Workforce diversity and personal policies Seite 23
Hinweis: Dies ist eine maschinenlesbare No-Flash Ansicht.
Klicken Sie hier um zur Online-Version zu gelangen.