Demographic Diversity in Top Level Management and Its Implications on Firm Financial Performance: An Empirical Discussion

This paper explores how demographic diversity in top level management affects firm financial performance. Top level management refers to both top management team and board of directors. Thus, the purpose of this paper is to empirically examine the effect of demographic diversity on top management te...

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Main Authors: Marimuthu, Maran, Kolandaisamy, Indraah
Format: Citation Index Journal
Institution: Universiti Teknologi Petronas
Record Id / ISBN-0: utp-eprints.12043 /
Published: 2009
Subjects:
HG Finance
Online Access: http://eprints.utp.edu.my/12043/1/Demographic%20Diversity%20in%20Top%20Level%20Management%20and%20Its%20Implication%20on%20Firm%20Financial%20Performance_An%20Empirical%20Discussion.pdf
http://eprints.utp.edu.my/12043/
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spelling utp-eprints.120432017-03-20T00:31:50Z Demographic Diversity in Top Level Management and Its Implications on Firm Financial Performance: An Empirical Discussion Marimuthu, Maran Kolandaisamy, Indraah HG Finance This paper explores how demographic diversity in top level management affects firm financial performance. Top level management refers to both top management team and board of directors. Thus, the purpose of this paper is to empirically examine the effect of demographic diversity on top management team and boards of directors with regard to firm financial performance. This paper uses both financial and non-financial data from top 100 non-financial listed companies over the period 2000 to 2006, using the non-probability sampling approach. Demographic diversity comprises of ethnic and gender diversity and performance is measured by Return on Equity (ROE). A Pooled Least Square (PLS) regression method is used and hierarchical regression analyses are presented accordingly. The results indicate that demographic diversity has some significant impact on boards of directors with regard to firm financial performance. However, demographic diversity in TMTs does not create any significant impact on firm financial performance. 2009 Citation Index Journal PeerReviewed application/pdf http://eprints.utp.edu.my/12043/1/Demographic%20Diversity%20in%20Top%20Level%20Management%20and%20Its%20Implication%20on%20Firm%20Financial%20Performance_An%20Empirical%20Discussion.pdf Marimuthu, Maran and Kolandaisamy, Indraah (2009) Demographic Diversity in Top Level Management and Its Implications on Firm Financial Performance: An Empirical Discussion. [Citation Index Journal] http://eprints.utp.edu.my/12043/
institution Universiti Teknologi Petronas
collection UTP Institutional Repository
topic HG Finance
spellingShingle HG Finance
Marimuthu, Maran
Kolandaisamy, Indraah
Demographic Diversity in Top Level Management and Its Implications on Firm Financial Performance: An Empirical Discussion
description This paper explores how demographic diversity in top level management affects firm financial performance. Top level management refers to both top management team and board of directors. Thus, the purpose of this paper is to empirically examine the effect of demographic diversity on top management team and boards of directors with regard to firm financial performance. This paper uses both financial and non-financial data from top 100 non-financial listed companies over the period 2000 to 2006, using the non-probability sampling approach. Demographic diversity comprises of ethnic and gender diversity and performance is measured by Return on Equity (ROE). A Pooled Least Square (PLS) regression method is used and hierarchical regression analyses are presented accordingly. The results indicate that demographic diversity has some significant impact on boards of directors with regard to firm financial performance. However, demographic diversity in TMTs does not create any significant impact on firm financial performance.
format Citation Index Journal
author Marimuthu, Maran
Kolandaisamy, Indraah
author_sort Marimuthu, Maran
title Demographic Diversity in Top Level Management and Its Implications on Firm Financial Performance: An Empirical Discussion
title_short Demographic Diversity in Top Level Management and Its Implications on Firm Financial Performance: An Empirical Discussion
title_full Demographic Diversity in Top Level Management and Its Implications on Firm Financial Performance: An Empirical Discussion
title_fullStr Demographic Diversity in Top Level Management and Its Implications on Firm Financial Performance: An Empirical Discussion
title_full_unstemmed Demographic Diversity in Top Level Management and Its Implications on Firm Financial Performance: An Empirical Discussion
title_sort demographic diversity in top level management and its implications on firm financial performance: an empirical discussion
publishDate 2009
url http://eprints.utp.edu.my/12043/1/Demographic%20Diversity%20in%20Top%20Level%20Management%20and%20Its%20Implication%20on%20Firm%20Financial%20Performance_An%20Empirical%20Discussion.pdf
http://eprints.utp.edu.my/12043/
_version_ 1741196138598367232
score 11.62408

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