University of Twente Student Theses
Exploring the Impact of Nationality Diversity in Corporate Boards on the Gender Pay Gap
Ruiter, C.T.A. de (2024) Exploring the Impact of Nationality Diversity in Corporate Boards on the Gender Pay Gap.
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| Abstract: | Since the 1900s there has been an increase in female working which has resulted in the gender pay gap. Defined as the gap between male versus female income, where it is commonly found that males are paid more than females. One of the key aspects in a company that influences decisions is the corporate board of a firm, where diversities present there can impact decisions. The specific diversity focused on is nationality diversity, looking at how many additional nationalities are present in the board. There are multiple theories used to explain both the gender pay gap and nationality diversity. Specifically for the pay gap there are the human capital model theory, labor market discrimination theory, and location and cultural background. For nationality diversity there is the agency theory and the impact of international perspective. The analysis focused on what impact the increase in nationality diversity has on the gender pay gap. Quantitative research was performed, within which one variable, two variable t-test were performed, followed by linear regression with added constants, resulting in quadratic analysis. The quadratic analysis shows a slight inverse U-curve, where the turning point was found within ShareNonUKMembers. From the outputs can be found that there is a slight relationship present between the impact nationality diversity has on the gender pay gap. Therefore the recommendation for future research would be to look at a broader research to include multiple nationalities. There is also the recommendation to include a part of nationality diversity, as it does show to have added benefits, or have a mainly diverse board. Having a majority creates more unity, with the added perspective from the diversifiers. |
| Item Type: | Essay (Bachelor) |
| Faculty: | BMS: Behavioural, Management and Social Sciences |
| Programme: | International Business Administration BSc (50952) |
| Link to this item: | https://purl.utwente.nl/essays/100292 |
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