Board of Director Diversity and Firm Financial Performance

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 f...

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Bibliographic Details
Published in:Corporate governance : an international review Vol. 11; no. 2; pp. 102 - 111
Main Authors: Erhardt, Niclas L., Werbel, James D., Shrader, Charles B.
Format: Journal Article
Language:English
Published: Oxford, UK and Boston, USA Blackwell Publishing Ltd 01.04.2003
Wiley Blackwell
Series:Corporate Governance: An International Review
Subjects:
diversity
Firm organisation
Firm organisation, diversity, performance, heterogeneity
heterogeneity
ISSN:0964-8410, 1467-8683
Online Access:Get full text
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Summary: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.
Bibliography:ArticleID:CORG307
istex:FFE9843AFD9AED8D18D4B4DC1FCB44AA1E8895AB
ark:/67375/WNG-RMTHTQQW-F
ISSN:0964-8410
1467-8683
DOI:10.1111/1467-8683.00011