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The influence of board diversity on firm’s financial performance : a comparison between firms from the Netherlands and the United Kingdom

Dam, J. ten (2018) The influence of board diversity on firm’s financial performance : a comparison between firms from the Netherlands and the United Kingdom.

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Abstract:This study analyses the impact of board diversity on financial performance in the Netherlands and United Kingdom for the years 2009, 2010, 2016 and 2017. The sample consists of 93 Dutch listed firms and 98 listed firms from United Kingdom. The firms from the Netherlands are all the listed firms located in the Netherlands listed on the Euronext Amsterdam. The 98 listed firms from the United Kingdom are the largest firms in terms of market capitalisation from the London Stock Exchange (LSE. Financial performance has been measured by Tobin’s q, Return on Assets using net income (ROA NI), and Return on Assets using earnings before interest and taxes (ROA EBIT). Three robustness tests have been presented, which are Return on Equity using net income (ROE NI) and using earnings before interest and taxes (ROE EBIT), and stock return (RET). The diversity characteristics that have faced attention are gender, age and nationality diversity. The results show that gender diversity is significantly related to firm performance in United Kingdom, measured by Tobin’s q and ROA NI. In the Netherlands, a significant relationship between gender diversity and financial performance, measured by ROA NI and ROE NI, is present. Next to that, gender diversity has a negative impact on RET. Next to that, a negative, significant influence of age diversity on financial performance has been found in the United Kingdom, for Tobin’s q and RET. Nationality diversity has shown to be a positive predictor of Tobin’s q in the Netherlands. In the United Kingdom, it positively influences Tobin’s q and RET. Nationality diversity has a negative influence on ROA NI, ROA EBIT, ROE NI, and ROE EBIT in the Netherlands.
Item Type:Essay (Master)
Faculty:BMS: Behavioural, Management and Social Sciences
Subject:85 business administration, organizational science
Programme:Business Administration MSc (60644)
Link to this item:http://purl.utwente.nl/essays/76994
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