Investigating the Impact of Board Gender Diversity on Firm Performance and Risk Management: The Moderating Role of CEO Education, CEO Power, and Institutional Investors
Keywords:
Risk management, CEO power, Performance, Institutional investors, Board gender diversity,Abstract
This study aims to investigate the impact of board gender diversity on firm performance and risk management, with a focus on the moderating effects of CEO education, CEO power, and institutional investors, in companies listed on the Tehran Stock Exchange. The statistical sample includes 116 companies listed on the Tehran Stock Exchange over the period from 2018 to 2022. The models employed in this study are multivariate linear regression models, analyzed using EViews 10 software. The hypothesis testing results indicate a significant and negative relationship between board gender diversity and financial performance (return on assets). There is a significant and positive relationship between board gender diversity and financial performance (return on equity). No significant relationship was found between board gender diversity and financial performance (Tobin's Q). A significant and positive relationship was identified between board gender diversity and economic performance (market value added and economic value added). Moreover, there is a significant and positive relationship between board gender diversity and non-financial performance (corporate social responsibility). However, no significant relationship was found between board gender diversity and other non-financial performance indicators (innovation, employee growth, internal process factor, customer factor, and learning and growth factor). Additionally, no significant relationship was observed between board gender diversity and risk management (operational risk, reporting risk management, and strategic risk management). There is, however, a significant and positive relationship between board gender diversity and risk management regarding non-compliance with laws and regulations.
Downloads
References
Anoshirvani, F., & Saedi, R. (2018). Investigating the Relationship Between CEO Power and Firm Value with the Interactive Role of Market Competition and Corporate Governance. Journal of Executive Management Research, 10(20), 147-173. https://jem.journals.umz.ac.ir/article_2321.html?lang=en
Beasley, M., Branson, B., & Hancock, B. (2014). Report on the current state of enterprise risk oversight: Opportunities to strengthen integration with strategy. https://erm.ncsu.edu/wp-content/uploads/sites/41/migrated-files/AICPA_ERM_Research_Study_2014.pdf
Cho, E., Okafor, C., Ujah, N., & Zhang, L. (2021). Executives’ gender-diversity, education, and firm’s bankruptcy risk: Evidence from China. Journal of Behavioral and Experimental Finance, 30. https://doi.org/10.1016/j.jbef.2021.100500
Fang, H., Lee, J. S., Chung, C. P., Lee, Y. H., & Wang, W. H. (2020). Effect of CEO power and board strength on bank performance in China. Journal of Asian Economics. https://doi.org/10.1016/j.asieco.2020.101215
Fil Saraei, M. (2024). Board Gender Diversity and Investment Inefficiency with the Moderating Role of Board Independence and CEO Tenure. Women in Development and Politics, 22(4), 775-802. https://jwdp.ut.ac.ir/article_92063.html?lang=en
Gilani Niay Someh Sarai, B., & Alizadeh, A. (2021). Investigating the Impact of Board Gender Diversity on Systematic Risk Through the Moderating Role of Risk Management of Companies Listed on the Tehran Stock Exchange. New Research Approaches in Management and Accounting, 5(72), 105-118. https://ensani.ir/fa/article/465545/
Hamidian, M., Mohammadi, M., & Karimi Deldar, B. (2021). Investigating the Impact of Board Characteristics, CEO Power Indices, and Financial Crisis on the Risk-Taking of Banks Listed on the Tehran Stock Exchange. New Research Approaches in Management and Accounting, 5(83). https://ideas.repec.org/a/eme/jmlcpp/jmlc-12-2019-0101.html
Jiang, H., Yuanyuan, H., Honghui, Z., & Donghua, Z. (2022). Benefits of Downward Earnings Management and Political Connection: Evidence from Government Subsidy and Market Pricing. International Journal of Accounting. https://ideas.repec.org/a/eee/accoun/v53y2018i4p255-273.html
Kahloul, I., Hicham, S., & Jocelyn, G. (2022). Does Corporate Social Responsibility reporting improve financial performance? The moderating role of board diversity and gender composition. The Quarterly Review of Economics and Finance, 84, 305-314. https://doi.org/10.1016/j.qref.2022.03.001
Khani, H., Gilani Nia Soumaeh Sarai, B., & Fadaei Kolvarzi, I. (2021). Investigating the Impact of Board Diversity on Fraudulent Financial Reporting Through the Role of Financial Performance of Companies Listed on the Tehran Stock Exchange. New Research Approaches in Management and Accounting(61), 63-83. https://majournal.ir/index.php/ma/article/view/788
Khodadadi, M., & Esmaeilzadeh, S. (2020). Investigating the Relationship Between Board Gender Diversity and Company Performance Measures with the Mediating Role of Government Ownership in Companies Listed on the Tehran Stock Exchange. New Research Approaches in Management and Accounting, 4(34), 201-214. https://www.majournal.ir/index.php/ma/article/view/1071
Michel, F., & Stéphane, D. (2023). Gender diversity and firm performance: when diversity at middle management and staff levels matter. The International Journal of Human Resource Management, 34(14), 2797-2831. https://doi.org/10.1080/09585192.2022.2093121
Moghadam, H. (2024). The Role of Managers’ Empowerment on the Relationship Between Comparability of Financial Statement Items and Gender Diversity of Board Members on Material Distortions of Financial Statements in Tehran Stock Exchange. Accounting and Management Perspective, 7(96), 171-192. https://www.jamv.ir/article_213460.html?lang=en
Mohseni, S., Otchere, I., & Shahriar, S. (2021). Board gender diversity, firm performance and risk-taking in developing countries: The moderating effect of culture. J. Int. Financ. Markets Inst. Money, 73. https://doi.org/10.1016/j.intfin.2021.101360
Panahi, M., Fotovat Karimi, R., & Ghandehari, H. (2023). CEO Power and Risk-Taking with the Moderating Role of Independent Board, CEO Compensation, and Institutional Ownership. New Research Approaches in Management and Accounting, 7(27), 1230-1252. https://ijafb.com/PDF/IJAFB-2022-43-09-13.pdf
Rahmanian Koshkaki, A., & Imanroui, Z. (2021). The Impact of CEO Overconfidence on Corporate Social Responsibility with the Moderating Role of Institutional Ownership in Companies Listed on the Tehran Stock Exchange. Accounting and Social Interests, 11(3), 49-68. https://jaacsi.alzahra.ac.ir/article_6049.html?lang=en
Rouzbahani Pari, A., & Ramezani, J. (2022). The Impact of Implementing Enterprise Risk Management and Its Sub-Components on Companies’ Risk and Bankruptcy. Investment Knowledge Quarterly, 11(4), 245-263. http://www.ijfma.ir/article_17262.html
Taghavi Moghadam, A., & Shams, A. (2021). The Moderating Effect of CEO Tenure on the Relationship Between Intellectual Capital and Firm Performance. Capital Market Analysis Quarterly, 1(3), 101-123. https://journals.iau.ir/article_690012.html
Tavangar Hamzeh Kolai, A., & Eskafi Asl, M. (2018). The Relationship Between CEO Power, Audit Committee Characteristics, and Internal Control Quality. Financial Accounting and Auditing Research, 10(38), 187-207. https://www.sid.ir/fa/journal/ViewPaper.aspx?id=349563
Wang, K., Ma, J., Xue, C., & Zhang, J. (2024). Board Gender Diversity and Firm Performance: Recent Evidence from Japan. Journal of Risk and Financial Management, 17(1), 20. https://doi.org/10.3390/jrfm17010020
Wang, Y., Mei, Y., Yu, S., & Gao, S. (2022). Gender diversity and financial statement fraud. Journal of Accounting and Public Policy, 41(2). https://doi.org/10.1016/j.jaccpubpol.2021.106903
Zhang, L., Chen, W., & Su, W. (2020). Product-market competition, internal control quality and audit opinions. Evidence from Chinese listed firms. Revista de Contabilidad Spanish Accounting Review, 23(1), 102-112. https://doi.org/10.6018/rcsar.369111
