Impact of Managerial Gender Diversity on Firm Performance in Japanese Companies: Evidence from Tobin's Q Analysis | Chapter 6 | Current Progress in Arts and Social Studies Research Vol. 3

 

The gender gap is significantly greater in Japan than in any other advanced OECD countries. A country’s competitiveness depends on its human talent—the skills, education and productivity of its workforce. This research is unique because it presents empirical evidence testing whether increasing gender diversity is associated with improved firm performance for Japanese listed companies, which have different cultural backgrounds from Western companies, after controlling for size and firm age. A number of researchers have proposed various mechanisms that would imply a positive relationship between workforce diversity and firm performance. As Worthley et al. [1] point out, the growing importance of the Japanese female workforce under global competition requires a better understanding of gender-related issues in organizational management which is undergoing a transformation from their rooted traditional managerial habits, such as seniority-based promotion, lifetime employment, paternalism, or prioritizing corporate harmony, which favor men. We find statistically significant positive relationships between managerial gender diversity and one measure of firm performance, Tobin’s q, without a long time lag required for it to be realized. We find, similarly to Siegel and Kodama [2], that manufacturing firms benefit significantly and sensitively to a greater extent from increasing managerial gender diversity as compared to those in the service industries, and moreover the curvature of this relationship is significantly greater for manufacturers. Furthermore, firms that demand fewer hours of overtime from their employees also experience this performance boost with increases in management gender diversity, with the same concave shape, and the more OT is reduced the more pronounced the effect. Having established a committee for diversity promotion by 2006 did not show any impact on firm performance per se, even by 2012, but it did magnify the effect of gender diversity on Tobin’s q, providing support for Pless and Maak’s [3] conjecture that a culture of inclusiveness is required for the benefits accruing from gender diversity to truly be realized. Finally, it is concluded that gender diversity could revitalize Japanese firms by providing an immediately accessible but underutilized source of competitive advantage.

                                                                           

 

Author(s) Details

Yukiko Nakagawa
Aoyama Gakuin University, Japan.

 

Please see the book here:- https://doi.org/10.9734/bpi/cpassr/v3/1463

Empirical Investigation of Corporate Board Characteristics and Deposit Money Banks (DMBS) Performance in Nigeria: 2008-2017 | Chapter 3 | Insights into Economics and Management Vol. 4

The analysis empirically examines the features of the corporate board and the performance of Deposit Money Banks (DMBs) in Nigeria for the period 2008-2017. It is driven by investors' lack of trust in the stock market, ongoing problems with agencies and the insolvency of major companies, such as banks. The general objective of this analysis is to examine the effect of the characteristics of the corporate board on the financial performance of DMBs in Nigeria. Based on the literature discussed, four study models/hypotheses were formulated. The significant factors that influence the success of DMBs in the Nigerian banking industry are also considered. Three of the mentioned were investigated in this study DMBs will use a basic Judgmental Sampling Method from 2008 to 2017 over a span of 10 years. The study population is made up of all the 21 DMBs listed as of 2019 on the Nigerian Stock Exchange. An econometric e-view was used to evaluate the data obtained for the analysis. Using the random effect model, the panel data was further analysed. It was found that, among others, board skills reflect a constructive and essential relationship with benefit for the year. The implication of the results is that the corporate governance practises were not properly enforced by each DMB examined, hence the explanations for the negative impacts of the independent variables except in the case of board qualification. The research supports the relationship between corporate governance and company results, but the relationship is relevant only at the level of board qualification and benefit for the year. The negative relationship between board independence and the success of DMBs (EPS) can be due to the fact that in developing countries such as Nigeria, the idea of board independence is a recent phenomenon, and thus it could take a few more years to have a major effect on financial performance. Critical attention should therefore be paid to corporate governance practises, in particular the CBN corporate governance codes, for better performance in Nigeria's banking sector.

Author (s) Details

T. F. I. Nwanne
Department of Accounting/Finance, Godfrey Okoye University, P.M.B. 01014, Enugu, Nigeria.

View Book :- https://bp.bookpi.org/index.php/bpi/catalog/book/348