BOARD DIVERSITY - DETERMINANT OF FIRM’S FINANCIAL PERFORMANCE
BOARD DIVERSITY - DETERMINANT OF FIRM’S FINANCIAL PERFORMANCE
Author(s): Milena Jana SchankSubject(s): Business Economy / Management, International relations/trade, Law on Economics, Accounting - Business Administration
Published by: Editura Universitaria Craiova
Keywords: critical board diversification; diversity; culture; firm performance; canonical correlations; Romania;
Summary/Abstract: This paper examines the impact of culture diversity of the board of directors on the firm’s financial performance for a sample of 2,000 Romanian companies. The effects of the presence of diversity within the board of directors (gender, age and national diversity) on firm’s performance is estimated using canonical correlations as methodology. The main results indicate that the dependent variables ROA and ROE significantly contribute to the independent variation of canonical function. Regarding the independent variables, three of them are statistically significant: Baby Boomers, Generation X and Generation M. There is no impact of gender or national diversity on firm’s financial performance.
Journal: Revista tinerilor economişti
- Issue Year: 2019
- Issue No: 33
- Page Range: 17-31
- Page Count: 15
- Language: English