The Value of Board Diversity in the Relationship of Corporate Governance and Investment Decisions of Pakistani Firms
| Autor: | Qaisar Ali Malik, Nauman Iqbal Mirza, Ch Kamran Mahmood |
|---|---|
| Jazyk: | angličtina |
| Rok vydání: | 2020 |
| Předmět: |
lcsh:Management. Industrial management
Sociology and Political Science Gender diversity corporate governance Accounting capital outlay decisions lcsh:Business Development Capital budgeting Stock exchange 0502 economics and business ddc:650 capital budgeting nationality diversity and board diversity 050208 finance business.industry Corporate governance 05 social sciences investment decisions Market liquidity Investment decisions lcsh:HD28-70 Profitability index gender diversity Business lcsh:HF5001-6182 General Economics Econometrics and Finance education diversity 050203 business & management Diversity (business) experience diversity |
| Zdroj: | Journal of Open Innovation: Technology, Market, and Complexity Volume 6 Issue 4 Journal of Open Innovation: Technology, Market and Complexity, Vol 6, Iss 146, p 146 (2020) |
| ISSN: | 2199-8531 |
| DOI: | 10.3390/joitmc6040146 |
| Popis: | Inspired by the studies on the impact of diversity among decision-making groups, this study was carried out to examine whether the diversity of the members of the board of directors, encompassing gender, nationality, education, and experience, moderates the relationship between the corporate governance and investment decisions of listed companies of the Pakistan Stock Exchange. Furthermore, the determinants of investment decisions in the context of Pakistani firms&rsquo are also explored. Panel data analysis techniques are used to gauge the cause and effect relationship among the variables. We find short-term liquidity and profitability are the determinants of Pakistani firms&rsquo investment decisions, both having adverse relationships. Moreover, we explore board independence, and chief executive officer (CEO) duality has a significant positive impact on investment decisions. We further find that experience diversity strongly moderates the relationship between board independence and board size with investment decisions in the opposite direction. Education diversity moderates the relation of board size and investment decisions in the same direction. Foreign directors&rsquo presence on the board also significantly moderates the relationship between board independence and investment decisions. The results of this empirical study confirm that board diversity moderates the relationship between corporate governance and investment decisions. |
| Databáze: | OpenAIRE |
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