Academia.eduAcademia.edu

Outline

THE EFFECT OF BOARD DIVERSITY ON EXPORT PERFORMANCE

2023, BZT ACADEMY PUBLISHING HOUSE

Abstract

A board of directors is a group of people elected or appointed by shareholders to oversee a company’s operations. The success and long-term survival of the company depend on board decisions, which affect shareholders, employees, customers and all other stakeholders. Being a well-performing company in a highly complex and competitive environment is a huge challenge. To achieve this, the board needs to take into account the global environment, political and economic conditions in different countries, industry competitiveness, market situation, financial and legal aspects, latest technologies and innovations. Therefore, boards of directors need to become more diverse in terms of age, ethnicity and gender as well as tenure, experience, educational background and socioeconomic status. Board diversity refers to the heterogeneous composition of a board in terms of gender, age, race, education, experience, nationality, lifestyle, culture, religion and many other aspects that make each individual unique. Many empirical studies have found evidence that more diverse boards are more effective at making decisions and overseeing company performance. The aim of this study is to investigate the effect of board diversity on export performance. To do so, panel data analysis was used with 1337 observations obtained from non-financial companies traded in BIST (Borsa Istanbul) between 2010-2019; statistically examining the relationship between board diversity and export performance. For the purpose of this study, one dependent variable, three independent variables and eight control variables were used. Gender, race and age were used as independent variables, with export performance being the dependent variable. According to the analysis results, gender diversity of the board of directors had a statistically significant and negative effect on export performance; racial diversity of the board of directors had a statistically significant and positive effect on export performance. Additionally, age diversity of the board of directors had a statistically insignificant effect on export performance. This study contributes to existing literature by providing evidence for how board diversity affects export performance- an important indicator for developing countries’ success.

References (22)

  1. Adams, R. B., & Ferreira, D. (2009). Women in the boardroom and their impact on governance and performance. Journal of financial economics, 94(2), 291-309.
  2. Ararat, M., Aksu, M. ve Çetin, A.T., (2010). Impact of Board Diversity on Boards, Monitoring Intensity and Firm Performance: Evidence From The Istanbul Stock Exchange, Available at SSRN 1572283.
  3. Arosa, B., T. Itturalde T., Maseda A. (2010) "Outsiders On The Board Of Directors And Firm Performance: Evi- dence From Spanish Non-Listed Family Firms", Journal Of Family Business Strategy, 1(1), 236-245.
  4. Arslantaş, C.C. (2012), Kurumsal Yönetimin Yönetim Kuruluna Yansımaları, Beta Basım A.Ş, 1.Baskı, İstanbul.
  5. Campbell, K., & Mínguez-Vera, A. (2008). Gender diversity in the boardroom and firm financial performance. Journal of business ethics, 83, 435-451.
  6. Cavaco, S., Challe, E., Crifo, P., Rebérioux, A., & Roudaut, G. (2016). Board independence and operating perfor- mance: analysis on (French) company and individual data. Applied economics, 48(52), 5093-5105.
  7. Choi, J. J., Park, S.W. ve Yoo, S. S. (2007) "The Value of Outside Directors: Evidence from Corporate Governance Reform in Korea" Journal of Financial and Quantitative Analysis, 42(4), 941-962.
  8. Doğan, M., & Topal, Y. (2016). Yönetim Kurulundaki Yabancı Üye Sayısının ve Yabancı Sahipliğinin Finansal Performans Üzerindeki Etkisi. Ege Academic Review, 16(1).
  9. Hillmann, A., Canella A., Paetzold R. (2000), The Resource Dependence Role of Corporate Directors: Strategic Adaptation of Board Composition in Response to Environmental Change, Journal of Management Studies, 37(2), 235-256.
  10. Holzmuller, H.H., Stottinger, B., (1996), Structural Modelling of Success Factors in Exporting: Cross-Validation and Further Development of an Export Performance Model, Journal of International Marketing, 4(2), 29- 55.
  11. Kaynak, E., Kuan, W.K., (1993), Environment, Strategy, Structure, and Performance in the Context of Export Activity: An Empirical Study of Taiwanese Manufacturing Firms, Journal of Business Research, 27, 33-49.
  12. Kılıç, M., & Kuzey, C. (2016). The effect of board gender diversity on firm performance: evidence from Turkey. Gender in management: An international journal, 31(7), 434-455.
  13. Kılınç, E. (2016). İşletmelerde Yönetim Kurulu Üye Özelliklerinin Yönetim Kurulu Performansına Etkisi.Haliç Ünv., Sosyal Bilimler Enstitüsü, Doktora Tezi, 2016.
  14. Lages, L. F., & Lages, C. R. (2004). The STEP scale: a measure of short-term export performance improve- ment. Journal of international marketing, 12(1), 36-56.
  15. Leonidou, L. C., Constantine S. K. and Nigel F. P., (1998), "Identifying Managerial Influences on Exporting: Past Research and Future Directions", Journal of International Marketing, 6(2), 74-102.
  16. Leonidou, L. C., Constantine S. K. and Saeed S. (2002). Marketing Strategy Determinants of Export Performance: A Meta-Analysis. Journal of Business Research, 55, 51-67.
  17. Masulis, R. W., Wang, C. ve Xie, F. (2012) Globalizing The Boardroom-The Effects of Foreign Directors on Corporate Governance and Firm Performance. Journal of Accounting and Economics, 53, 527-554.
  18. Moon, J. and Lee, H., (1990). On the Internal Correlates of Export Stage Development: An Empirical Investigation in the Korean Electronics Industry. International Marketing Review, 7(5), 16-26
  19. Rose, C. (2007). Does Female Board Representation Influence Firm Performance? The Danish Evidence. Journal of Corporate Governance: An International Review, 15, 404-413.
  20. Schwizer, P., Soana, M., and Cucinelli, D. (2012). The relationship between board diversity and firm performan- ce: The Italian evidence (Working Paper). Department of Banking and Insurance, Faculty of Economics, University of Parma.
  21. Shukeri, S. N., Shin, O. W. and Shaari, M. S. (2012). Does Board of Director's Characteristics Affect Firm Per- formance? Evidence From Malaysian Public Listed Companies. International Business Research, 5(9), 120-127.
  22. Şengür, E.D., Püskül S.Ö. (2011). İMKB Kurumsal Yönetim Endeksindeki Şirketlerin Yönetim Kurulu Yapısı ve İşletme Performansının Değerlendirilmesi. Dumlupınar Üniversitesi Sosyal Bilimler Dergisi, 31, 45.