Boardroom Diversity and Operating Performance: The Moderating Effect of Strategic Change

This study aims to investigate the effect of boardroom diversity on Chinese listed firms' operating performance. Incorporating gender, age, tenure, and professional background of board member's attributes into a composite diversity index, the results show that boardroom diversity positivel...

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Bibliographic Details
Published in:Emerging markets finance & trade 2019-09, Vol.55 (11), p.2448-2472
Main Authors: Hsu, Chih-shun, Lai, Wei-hung, Yen, Sin-hui
Format: Article
Language:English
Subjects:
boardroom diversity
operating performance
strategic change
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Summary:This study aims to investigate the effect of boardroom diversity on Chinese listed firms' operating performance. Incorporating gender, age, tenure, and professional background of board member's attributes into a composite diversity index, the results show that boardroom diversity positively affects operating performance. However, when taking strategic change into consideration, the results indicate that the firms with larger strategic change tend to have a negative correlation between boardroom diversity and operating performance, whereas the correlation is positive if firms with smaller strategic. This study expects to fill the literature gap by extending the understanding of boardroom-diversity-performance relationship in the emerging context.
ISSN:1540-496X
1558-0938
DOI:10.1080/1540496X.2018.1519414