Relationship between diversity on the board of directors’ and firm financial performance

• Autor(a) principal: Gill, Navjeet Singh
• Data de Publicação: 2018
• Tipo de documento: Dissertação
• Idioma: eng
• Título da fonte: Repositório Institucional do FGV (FGV Repositório Digital)
• Texto Completo: http://hdl.handle.net/10438/20229
• topic: Corporate governance; Gender diversity; Racial diversity; Board of directors; FTSE100; Governança corporativa; Diversidade de gênero; Diversidade racial; Conselho administrativo; Diversidade demográfica; Economia; Diversidade no local de trabalho; Governança corporativa; Empresas - Diretoria

This empirical research examines the relationship between board’s diversity and firm performance, providing a comprehensive quantitative analysis between diversity factors (demographic - gender and race, cognitive - age, education, role and network) and financial factors (ROA, ROE, ROIC, asset turnover and current ratio) in the component companies of the FTSE 100 index. The dataset also includes a wide array of information about 1053 board members. The results indicate that a diverse board positively impacts ROA, ROIC, asset turnover and current ratio but were insignificant for ROE. It proves that diversity leads to better social reputation, performance and financial performance.