Effect of board diversity on corporate governance structure and operating performance: evidence from the UK listed firms*

This study expands the model of corporate governance to incorporate moderating effect of board diversity. It also investigates the relationship between internal corporate governance structures and firm performance and how this relationship is moderated by the influence of board diversity. The data...

Full description

Bibliographic Details
Main Author:	Alabede, James Oladapo
Format:	Article
Language:	English
Published:	Penerbit Universiti Kebangsaan Malaysia 2016
Online Access:	http://journalarticle.ukm.my/10754/ http://journalarticle.ukm.my/10754/ http://journalarticle.ukm.my/10754/1/10673-43529-1-PB.pdf

id	ukm-10754
recordtype	eprints
spelling	ukm-107542017-10-09T09:28:28Z http://journalarticle.ukm.my/10754/ Effect of board diversity on corporate governance structure and operating performance: evidence from the UK listed firms* Alabede, James Oladapo This study expands the model of corporate governance to incorporate moderating effect of board diversity. It also investigates the relationship between internal corporate governance structures and firm performance and how this relationship is moderated by the influence of board diversity. The data of the study, which were extracted from annual reports of the UK FTSE 350 firms, were treated statistically using OLS-moderating multiple regression analysis. The coefficients provide evidence that the proportion of outside directors, board size, board diversity are significantly positively related to operating performance (ROA). The empirical evidence also indicates that the moderating effect of board diversity strengthens the relationship between outside directors and operating performance as well as between board size and operating performance. By implication, the result suggests that Agency Theory must explicitly indicate that board diversity plays important moderating role in corporate governance. Penerbit Universiti Kebangsaan Malaysia 2016 Article PeerReviewed application/pdf en http://journalarticle.ukm.my/10754/1/10673-43529-1-PB.pdf Alabede, James Oladapo (2016) Effect of board diversity on corporate governance structure and operating performance: evidence from the UK listed firms*. Asian Journal of Accounting and Governance, 7 . pp. 67-80. ISSN 2180-3838 http://ejournal.ukm.my/ajac/issue/view/868/showToc
repository_type	Digital Repository
institution_category	Local University
institution	Universiti Kebangasaan Malaysia
building	UKM Institutional Repository
collection	Online Access
language	English
description	This study expands the model of corporate governance to incorporate moderating effect of board diversity. It also investigates the relationship between internal corporate governance structures and firm performance and how this relationship is moderated by the influence of board diversity. The data of the study, which were extracted from annual reports of the UK FTSE 350 firms, were treated statistically using OLS-moderating multiple regression analysis. The coefficients provide evidence that the proportion of outside directors, board size, board diversity are significantly positively related to operating performance (ROA). The empirical evidence also indicates that the moderating effect of board diversity strengthens the relationship between outside directors and operating performance as well as between board size and operating performance. By implication, the result suggests that Agency Theory must explicitly indicate that board diversity plays important moderating role in corporate governance.
format	Article
author	Alabede, James Oladapo
spellingShingle	Alabede, James Oladapo Effect of board diversity on corporate governance structure and operating performance: evidence from the UK listed firms*
author_facet	Alabede, James Oladapo
author_sort	Alabede, James Oladapo
title	Effect of board diversity on corporate governance structure and operating performance: evidence from the UK listed firms*
title_short	Effect of board diversity on corporate governance structure and operating performance: evidence from the UK listed firms*
title_full	Effect of board diversity on corporate governance structure and operating performance: evidence from the UK listed firms*
title_fullStr	Effect of board diversity on corporate governance structure and operating performance: evidence from the UK listed firms*
title_full_unstemmed	Effect of board diversity on corporate governance structure and operating performance: evidence from the UK listed firms*
title_sort	effect of board diversity on corporate governance structure and operating performance: evidence from the uk listed firms*
publisher	Penerbit Universiti Kebangsaan Malaysia
publishDate	2016
url	http://journalarticle.ukm.my/10754/ http://journalarticle.ukm.my/10754/ http://journalarticle.ukm.my/10754/1/10673-43529-1-PB.pdf
first_indexed	2023-09-18T19:58:22Z
last_indexed	2023-09-18T19:58:22Z
_version_	1777406681584500736

Effect of board diversity on corporate governance structure and operating performance: evidence from the UK listed firms*

Similar Items