Does Diversity in The Boardroom Add Value to a Firm?

Authors

  • Prasad Vemala Robert Morris University
  • Tapan Seth Robert Morris University
  • Manu Reddy Basis Chandler

DOI:

https://doi.org/10.33423/ajm.v18i5.255

Keywords:

Business Management, Diversity, Strategic Management, Leadership Structure, Human Resources

Abstract

This study examines whether board diversity affects firm performance. We investigate this study using panel data of a sample of S&P 500 firms during a 12 year period. After controlling for industry, firm size, and other board composition variables, we find that all three board diversity variables of interest – gender, ethnicity, and age have a significant influence on firm performance. While ethnicity and age have a positive influence on firm performance, it was found that gender has a negative influence. Implications for future research are discussed.

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Published

2018-11-01

How to Cite

Vemala, P., Seth, T., & Reddy, M. (2018). Does Diversity in The Boardroom Add Value to a Firm?. American Journal of Management, 18(5). https://doi.org/10.33423/ajm.v18i5.255

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Section

Articles