The impact of board diversity and voluntary risk disclosure on financial outcomes. A case for the manufacturing industry
| Autor: | Francisco Bravo-Urquiza, Nuria Reguera-Alvarado |
|---|---|
| Přispěvatelé: | Universidad de Sevilla. Departamento de Contabilidad y Economía Financiera |
| Rok vydání: | 2020 |
| Předmět: |
Finance
050208 finance Gender diversity business.industry 05 social sciences Novelty Sample (statistics) Board diversity Ethnic diversity Gender Studies Board of directors Turnover Content analysis Manufacturing Cultural diversity 0502 economics and business Financial outcomes Business Management and Accounting (miscellaneous) Risk disclosures business 050203 business & management Diversity (business) |
| Zdroj: | idUS. Depósito de Investigación de la Universidad de Sevilla instname |
| ISSN: | 1754-2413 |
| DOI: | 10.1108/gm-07-2018-0085 |
| Popis: | Purpose The purpose of this paper is to analyse how board diversity affects firm financial outcomes through the way in which this diversity helps to improve voluntary disclosures. Design/methodology/approach The partial least squares (PLS) technique is used, and a sample of the manufacturing firms listed in Standard and Poor’s 500 for 2009 is studied. In relation to board diversity, two specific characteristics are considered, namely, gender diversity and ethnic diversity. Content analysis techniques are used to measure risk disclosures. Findings The results show that there is a positive association between board diversity and firms’ financial outcomes, which is explained by disclosing risk information. Research limitations/implications The results indicate that the effect of boards of directors on firm outcoumes is influenced by the board involvement in specific strategies, thereby providing encouraging opportunities for future research. Practical implications These findings have implications both for companies, when selecting board members, and for policymakers, when establishing requirements concerning board composition. Moreover, the evidence highlights the role of disseminating risk information, which has direct implications for managers and regulators, who may better understand the value-relevance of risk disclosures. Originality/value The use of PLS technique is one of the novelties of this paper. The novelty of this approach provides fresh insights into the literature, highlighting that the effect of boards on firm outcomes may be mediated by director involvement in specific disclosure strategies. |
| Databáze: | OpenAIRE |
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