Women on boards and firm performance

This study investigates the financial performance of Dutch companies both with and without women on their boards. The analysis extends earlier methods used in research by Catalyst (The bottom line: corporate performance and women’s representation on boards, 2007) and McKinsey (Women matter. Gender diversity, a corporate performance driver. McKinsey & Company, USA, 2007), two studies that are often cited in the literature, although, each has a number of methodological shortcomings. This article adds to the international debate, which is often normative, through examining 99 listed companies in the Dutch Female Board Index. Our results show that firms with women directors perform better than those without women on their boards.     

Women on corporate boards around the world: Triggers and barriers

One of the institutions in which the gender gap remains a contestable issue is the board of directors, where the proportion of female directors is still low. While some countries have achieved higher proportions of female directors on their corporate boards, others have not registered even a single one. Drawing on social role theory, that places emphasis on traditional gender activities, this study starts by arguing that board directorship is an agentic role and more suitable for men. The study shows that key social institutions have the potential to alleviate such stereotypical attitudes or to maintain the status quo. Employing a robust statistical technique in two-stage least squares (2SLS), this study finds that the representation of women in other key national institutions, such as in politics, positively affects the appointment of female directors on boards. On the other hand, religiosity has a negative causal effect on female board appointments.     

Women on the boards of listed companies: Evidence from Finland

This paper investigates gender differences on the corporate boards of Finnish listed companies. The personal characteristics, careers, and boardroom roles of female and male directors on boards were analyzed on the basis of empirical data collected by questionnaire. An analysis of the findings revealed only minor differences between the women and men in personal characteristics such as their marital status, number of children and education, or in their careers. However, female board members were on average younger than their male counterparts and considered themselves to be more protean, took more active roles on the board, and enjoyed power more than men did. They also felt a need for more women on the board. The goal of this study is to contribute to the existing research in two ways. Firstly, it provides empirical evidence on women??s representation on boards from Finland, where women??s and men??s rights are regarded as more equal than in many other countries. Secondly, the study aims to increase our knowledge of gender differences, careers and roles of women in top positions in Finnish business.     

Ex-post governance in joint ventures: Determinants of monitoring by JV boards of directors

Considerable advances have been made in corporate governance research in recent years and opportunities exist to consider these developments within alliances. We extend the “scope of operations” hypothesis to the domain of joint ventures. This proposition suggests that the monitoring carried out by boards increases when organizations become more complex. The inherent characteristics of JVs generate unique sources of complexity that are currently unexplored in the corporate governance literature. First, we seek to determine their influence on monitoring by using primary data on JV board monitoring. Second, we adopt the size of JV boards as a proxy for monitoring in order to examine whether the determinants of board size and monitoring in fact coincide and to reveal if certain effects are masked by using board size as a simple proxy for monitoring. Doing so enables us to investigate the black-box of what boards actually do as well as extend governance research to other organizational forms. Our findings confirm that the unique characteristics of JVs influence the information needs by the boards resulting in more monitoring by JV directors. Our findings show there is value in bridging alliance theory and the literature on corporate governance research. We also advance practitioner's understanding by providing suggestions on how to structure JV boards in relation to their complexity.     

Corporate governance and board accounts: exploring a neglected interface between boards of directors and management

There is an absence of research about what information boards of directors have access to and how they use that information. The purpose of this paper is to explore and theorize about the content and use of information to boards of directors. The paper introduces and elaborates on the concept of ‘board accounts’, which is defined as the information supplied to boards of directors by top-management. The paper locates the board accounts in the Swedish institutional setting and demonstrates how the concept can be operationalized in an empirical setting. On the basis of a unique material of archived board records in a Swedish company, the paper explores the board accounts over a period of 10 years (1989–1998). It is found that while use of the board accounts in the case study company changes considerably over time, the content of the board accounts remains largely unchanged. This raises questions about where and when directors receive information, the reliability of the information in the board accounts, and recent attempts to integrate corporate governance and management accounting (CIMA, Performance reporting to boards: a guide to good practice, 2003; CIMA strategic scorecard: boards engaging in strategy, 2005; Seal, Management Accounting Research 17(4):389–408, 2006). Finally, the paper discusses the merits of historical archive-based approaches in this field and possibilities for future research.

CEO duality and firm performance: The moderating roles of other executives and blockholding outside directors

This study examines how the effect of CEO duality on firm performance is affected by two internal governance forces – namely other executives in the top management team and blockholding outside directors. Results based on a longitudinal dataset from the U.S. computer industry were consistent with my hypotheses. Specifically, I found that the effect of CEO duality was negative when the CEO had dominant power relative to other executives and when the board had a blockholding outside director, but was nonsignificant otherwise. This study enriches our understanding of the effect of CEO duality, and helps reinforce the call for the nonduality structure as the default choice and put the burden of proof on those who wish to justify otherwise on special grounds.     

Roles and responsibilities of boards of directors revisited in reconciling conflicting stakeholders interests while maintaining corporate responsibility

The article analyses the business of business and comes to the view that the role of business is to balance all stakeholders’ interests while giving relative dominance to the interests of investors, over those of other stakeholders. Based on this understanding, we propose an economic model, which describes the nexus and interactions between the interests of stakeholders, and develops a set of functions aimed at achieving better management of risk through corporate socially responsible (i.e. CSR) investment. The model takes into account the utilities of the corporate officers, short term and long term investors. All three functions are considered by the Board of Directors, who are deemed the final arbiters with respect to firm decision-making and the body to whom executive management owes fiduciary duties. Finally, a decision rule is developed that defines the circumstances under which the Board of Directors will consider to invest corporate funds in CSR.     

Work overload and intimidation: The moderating role of resilience

Work overload is a critical but understudied stressor at work, particularly for boundary-spanning positions. Recent studies have highlighted the need for more research on the identification of different predictors of the use of intimidation, a type of assertive impression management tactic. Relying on Lazarus's transactional theory, this study hypothesized and investigated a mediated moderation model that includes resilience, work overload, and its outcomes.This paper contributes to the organizational literature by examining the use of intimidation by salespeople as a reaction to stressful circumstances and the association between this tactic and salespeople's performance. The information provided by 248 employee–supervisor dyads confirmed the proposed model. Work overload has a positive association with intimidation, and the direct effect of work overload on intimidation depends on the level of an employee's resilience. Finally, the use of intimidation has a negative association with supervisor-rated performance.     

Conformance and performance roles of bank boards: The connection between non-performing loans and non-performing directorships

This study evaluates how non-performing loans and different types of board turnover—which we link to performing directorship (natural turnover) and non-performing directorship (forced turnover)—impact the economic performance (ROA) of banks. The proposed model and hypotheses, based on the conformance and performance roles of boards, are tested on a rich sample that includes all banking firms operating in Costa Rica between 2000 and 2012. The results indicate that the negative effect of non-performing loans on ROA is significantly greater in banks with non-performing directorship associated with high rates of unexpected changes in the board. The findings of the study highlight that the competence of boards matters. The results also give evidence of the importance of balancing financial and non-financial goals if superior governance and economic performance are the objectives pursued by organisations.     

Strong shareholder rights,internal capital allocation efficiency,and the moderating role of market competition and external financing needs

Review of Managerial Science - This study investigates the effect of strong shareholder rights on the internal capital allocation efficiency of multi-segment firms and how market competition and...     

Trainee programme reactions and work performance: the moderating role of intrinsic motivation

This study investigated the moderating role of intrinsic motivation on the relationship between trainee programme reactions and work performance among trainees enrolled in formal trainee programmes. The results from a cross-sectional survey among 114 trainees representing three Norwegian service organizations showed that the relationships between perception of the trainee programme and facets of self-reported work performance were positive only for trainees low in intrinsic motivation. Implications for practice and directions for future research are discussed.     

Training and organizational commitment: exploring the moderating role of goal orientation in the Lebanese context

In this study, we investigated the impact of organizational training on organizational commitment and whether goal orientation moderates the relationship between training and commitment. The sample consisted of 124 employees from different industries in the country of Lebanon. Multiple regression and hierarchical moderated regression were used to test hypotheses. The results of the analysis showed that training has a significant effect on organizational commitment. Moderation analysis showed that the relationship between training and affective commitment was stronger for individuals who had higher levels of learning goal orientation. Performance goal orientation failed to moderate the relationship between training and affective commitment. Ultimately, this suggests that advanced training offered to individuals with performance goal orientations may not necessarily increase their commitment to their employer, in contrast to individuals with learning goal orientations. Theoretical and management implications in the context of Lebanon are proposed.     

Participation satisfaction and organizational commitment: moderating role of employee's cultural values

This paper explores the moderating role of cultural values on relationships between participation satisfaction (PS) and employees’ organizational commitment (OC). A survey of 1390 employees of Bharat Sanchar Nigam Limited, a Government of India Public Sector Undertaking providing telecommunication services across India, shows that PS is directly related to OC, and is moderated by employees’ cultural values at individual level. The form of moderation reveals: positive and insignificant relationship between PS and affective commitment for employees high in uncertainty avoidance; positive and significant relationship between PS and normative commitment for employees high in individualism/collectivism, low in masculinity/femininity, and low in power distance. No moderation has been found in the relationship between PS and continuance commitment.     

Creative and innovative behaviours of corporate directors: an elusive role of task-related conflicts

The aim of the present work is to examine corporate directors’ boardroom interactions associated with conflicts as well as creativity and innovation phenomena. In line with the behavioral perspective in research on boards, we investigate relationships between task conflicts, an emerging creative and innovative boardroom climate as well as directors’ work behaviors. Drawing upon the survey data from 423 corporate directors, we tested hypothesized relationships by the means of the structural equation modelling technique. The results provide evidence suggesting that task-related conflicts among corporate directors appear to be equally detrimental for the psychological workgroup climate as they are advantageous for initiating creative and innovative work behaviours. In other words, the positive effect of task conflicts on directors’ creative and innovative work behaviours occurs so long as such conflicts do not simultaneously impair their perception of the creative/innovative boardroom environment. By integrating the literature on workplace group conflicts, creativity and innovation with the corporate governance writings, this study offers a new insight into corporate directors functioning. Presented findings have clear implications for future board research and managerial practice.     

The moderating role of personality characteristics on the relationship between job insecurity and strain

The experience of job insecurity has been linked to several different outcomes, such as negative attitudes towards work and the organization, turnover intention, as well as health complaints. However, since the strength of these effects have been found to vary across studies, it is vital to identify factors that could influence the relationships. The present study examines the moderating role of three personality characteristics (negative affectivity, positive affectivity, and external locus of control) on the relation between job insecurity and outcomes (mental health complaints, job dissatisfaction, and job-induced tension). Data from 400 nurses at a Swedish acute care hospital (response rate 71%; 91% women, aged 20-68 years) showed that both job insecurity and personality were related to strain. Also, the data indicated some buffering effect of personality. Despite the gender bias of the sample, the study provides additional support for the notion that job insecurity affects strain even after controlling for individual characteristics. The study also expands the literature on job insecurity by pointing out the influence of personality characteristics on the relationship between stressors and strain.     

Personal development plans supporting employee learning and perceived performance: the moderating role of self-directedness

Due to developments in the current dynamic business environment which is more global and competitive than ever, employees’ lifelong learning and the way organizations support their continuous development are pivotal. Many organizations introduce personal development plans (PDPs) to support employees’ learning, however, not always taking into account their personal characteristics. This study had a twofold purpose as it was designed to explore on the one hand the relationship between PDPs in the workplace with employee’s undertaking of learning activities and perceived performance, and on the other hand the possible moderating role of employee self-directedness on this relationship. For this study, data collected by means of a questionnaire at two different organizations were used, one organization foregoing profit and one non-profit activity. The results indicated significant positive relations between the individual supporting factor ‘employee learning and reflection’ and the undertaking of learning activities and perceived performance and between employee self-directedness and the undertaking of learning activities and perceived performance. The same accounted for the moderating effect of employee self-directedness on the interaction between learning and reflection and perceived performance. Some findings were surprising, nevertheless resulted in valuable insights and implications for practice.     

Strategic leadership for exploration and exploitation: The moderating role of environmental dynamism

This study advances prior theoretical research by linking transformational and transactional behaviors of strategic leaders to two critical outputs of organizational learning: exploratory and exploitative innovation. Findings indicate that transformational leadership behaviors contribute significantly to adopting generative thinking and pursuing exploratory innovation. Transactional leadership behaviors, on the other hand, facilitate improving and extending existing knowledge and are associated with exploitative innovation. In addition, we argue that environmental dynamism needs to be taken into account to fully understand the effectiveness of strategic leaders. Our study provides new insights that misfits rather than fits between leadership behaviors and innovative outcomes matter in dynamic environments. Hence, we contribute to the debate on the role of strategic leaders in managing exploration and exploitation, not only by examining how specific leadership behaviors impact innovative outcomes, but also by revealing how the impact of leadership is contingent upon dynamic environmental conditions.     

Idiosyncratic deals and individual effectiveness: The moderating role of leader-member exchange differentiation

Extending prior research on idiosyncratic deals (i-deals), in the current study we examine the functioning of i-deals in the context of leader-member exchange (LMX) differentiation. To that end, we integrate justice, social exchange, and social comparison theories and hypothesize that employee perceptions of their managers' procedural fairness and LMX quality partially mediate (in sequence) the positive relationship between i-deals and individual effectiveness, including job satisfaction, in-role performance, and helping behavior. Furthermore, we propose that LMX differentiation moderates this mediated relationship, such that the mediation effect becomes stronger when LMX differentiation within the group is greater. Data from a U.S. sample of 961 employees and their managers in 71 restaurants supported our hypothesized model. Results shed light on managerial practices regarding how to gain positive effects from i-deals by considering the influence of LMX differentiation.     

Transformational leadership and follower creativity: The mediating role of follower relational identification and the moderating role of leader creativity expectations

We examined follower relational identification with the leader as a mediator and follower perceptions of leader creativity expectations as a moderator in the relationship between transformational leadership and follower creativity. Using a sample of 420 leader–follower dyads from an energy company in mainland China, we found that follower relational identification with the leader mediates the transformational leadership–follower creativity relationship, and this mediating relationship is conditional on the moderator variable of follower perceptions of leader creativity expectations for the path from follower relational identification to follower creativity. These results contribute to the literature by clarifying why (through relational identification) and when (high creativity expectations set by the leader) transformational leadership is positively related to follower creativity.