Board heterogeneity and corporate performance: An insight beyond agency issues

In current volatile business environment, the owners of the corporations are worried about how diverse board composition influences the strategic performance of the corporations. Therefore, this study considered the agency theory, upper echelon and resource-based view of board heterogeneity as limit...

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Autores principales:	Farheen Akram, Muhammad Abrar ul Haq, Vinodh K Natarajan, R. Stephen Chellakan
Formato:	article
Lenguaje:	EN
Publicado:	Taylor & Francis Group 2020
Materias:	educational heterogeneity of board national heterogeneity gender heterogeneity firm performance Business HF5001-6182 Management. Industrial management HD28-70
Acceso en línea:	https://doaj.org/article/bdf9c2fca7dd419296bef8d0eddc63b4
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spelling	oai:doaj.org-article:bdf9c2fca7dd419296bef8d0eddc63b42021-12-02T14:41:54ZBoard heterogeneity and corporate performance: An insight beyond agency issues2331-197510.1080/23311975.2020.1809299https://doaj.org/article/bdf9c2fca7dd419296bef8d0eddc63b42020-01-01T00:00:00Zhttp://dx.doi.org/10.1080/23311975.2020.1809299https://doaj.org/toc/2331-1975In current volatile business environment, the owners of the corporations are worried about how diverse board composition influences the strategic performance of the corporations. Therefore, this study considered the agency theory, upper echelon and resource-based view of board heterogeneity as limited literature account for such integrated phenomenon of theories. Accordingly, the key aim of the study is to scrutinize the impacts of occupational heterogeneity (educational) and social heterogeneity (gender and national) on firm performance. At first, Blau’s heterogeneity index was applied to measure the occupational heterogeneity and social heterogeneity, then ordinary least square method was applied for analysis. The data set was obtained from the non-financial sector of Pakistan Stock Exchange for the years 2010–2016 with final sample of 375 firms. The findings of current research concluded that all measures of occupational heterogeneity significantly and positively contribute to firm value expect finance education and other education (defense, arts, political science etc.). However, in social heterogeneity, gender diversity has a negative effect on firm performance while nationally heterogeneous board demonstrate a positive effect on firm performance. Moreover, this study has beneficial implications for the corporate sector as firms can boost their profitability by extracting benefits from their diverse workforce.Farheen AkramMuhammad Abrar ul HaqVinodh K NatarajanR. Stephen ChellakanTaylor & Francis Grouparticleeducational heterogeneity of boardnational heterogeneitygender heterogeneityfirm performanceBusinessHF5001-6182Management. Industrial managementHD28-70ENCogent Business & Management, Vol 7, Iss 1 (2020)
institution	DOAJ
collection	DOAJ
language	EN
topic	educational heterogeneity of board national heterogeneity gender heterogeneity firm performance Business HF5001-6182 Management. Industrial management HD28-70
spellingShingle	educational heterogeneity of board national heterogeneity gender heterogeneity firm performance Business HF5001-6182 Management. Industrial management HD28-70 Farheen Akram Muhammad Abrar ul Haq Vinodh K Natarajan R. Stephen Chellakan Board heterogeneity and corporate performance: An insight beyond agency issues
description	In current volatile business environment, the owners of the corporations are worried about how diverse board composition influences the strategic performance of the corporations. Therefore, this study considered the agency theory, upper echelon and resource-based view of board heterogeneity as limited literature account for such integrated phenomenon of theories. Accordingly, the key aim of the study is to scrutinize the impacts of occupational heterogeneity (educational) and social heterogeneity (gender and national) on firm performance. At first, Blau’s heterogeneity index was applied to measure the occupational heterogeneity and social heterogeneity, then ordinary least square method was applied for analysis. The data set was obtained from the non-financial sector of Pakistan Stock Exchange for the years 2010–2016 with final sample of 375 firms. The findings of current research concluded that all measures of occupational heterogeneity significantly and positively contribute to firm value expect finance education and other education (defense, arts, political science etc.). However, in social heterogeneity, gender diversity has a negative effect on firm performance while nationally heterogeneous board demonstrate a positive effect on firm performance. Moreover, this study has beneficial implications for the corporate sector as firms can boost their profitability by extracting benefits from their diverse workforce.
format	article
author	Farheen Akram Muhammad Abrar ul Haq Vinodh K Natarajan R. Stephen Chellakan
author_facet	Farheen Akram Muhammad Abrar ul Haq Vinodh K Natarajan R. Stephen Chellakan
author_sort	Farheen Akram
title	Board heterogeneity and corporate performance: An insight beyond agency issues
title_short	Board heterogeneity and corporate performance: An insight beyond agency issues
title_full	Board heterogeneity and corporate performance: An insight beyond agency issues
title_fullStr	Board heterogeneity and corporate performance: An insight beyond agency issues
title_full_unstemmed	Board heterogeneity and corporate performance: An insight beyond agency issues
title_sort	board heterogeneity and corporate performance: an insight beyond agency issues
publisher	Taylor & Francis Group
publishDate	2020
url	https://doaj.org/article/bdf9c2fca7dd419296bef8d0eddc63b4
work_keys_str_mv	AT farheenakram boardheterogeneityandcorporateperformanceaninsightbeyondagencyissues AT muhammadabrarulhaq boardheterogeneityandcorporateperformanceaninsightbeyondagencyissues AT vinodhknatarajan boardheterogeneityandcorporateperformanceaninsightbeyondagencyissues AT rstephenchellakan boardheterogeneityandcorporateperformanceaninsightbeyondagencyissues
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Board heterogeneity and corporate performance: An insight beyond agency issues

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