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Board of Director Diversity and Firm Financial Performance
Author(s) -
Erhardt Niclas L.,
Werbel James D.,
Shrader Charles B.
Publication year - 2003
Publication title -
corporate governance: an international review
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.866
H-Index - 85
eISSN - 1467-8683
pISSN - 0964-8410
DOI - 10.1111/1467-8683.00011
Subject(s) - diversity (politics) , business , return on assets , accounting , gender diversity , investment (military) , asset (computer security) , finance , corporate governance , political science , computer security , profitability index , politics , computer science , law
This study examines the relationship between demographic diversity on boards of directors with firm financial performance. This relationship is examined using 1993 and 1998 financial performance data (return on asset and investment) and the percentage of women and minorities on boards of directors for 127 large US companies. Correlation and regression analyses indicate board diversity is positively associated with these financial indicators of firm performance. Implications for both strategic human resource management and future research are discussed.