Title

Association between Gender and Ethnic Diversity on the Boards of Directors of Publicly Listed Companies in South Africa and Intellectual Capital Performance

Publication Type

Journal Article

Publication Date

2004

Abstract

This study addresses deficiencies in the corporate governance and intellectual capital literature by examining the association between the level of gender and ethnic diversity on the boards of directors of South African publicly listed firms and their degree of intellectual capital performance. A total of eighty-four South African publicly listed firms were included in this study. Empirical results indicated a positive association between the percentage of female and non-white directors on the boards of directors of South African publicly listed status and a firm’s intellectual capital performance. Additional analysis showed the designation of female directors as an insider had a negative effect of intellectual capital performance. Designation of female and non-white directors as outsiders had a positive influence on a firm’s intellectual capital performance. Finally, there was no association between the percentage of non-white inside directors on the boards of South African publicly listed firms and intellectual capital performance. Based on the results of this study, it is concluded South African publicly listed firms may be able to enhance their intellectual capital performance by utilizing a well balanced and structured board of directors in terms of gender and ethnic representation. Finally, for a conceptual perspective, the results of this study support the application of resource-dependence theory as a relevant theoretical framework to examine and explain factors influencing intellectual capital performance.

Discipline

Accounting | Corporate Finance | Gender, Race, Sexuality, and Ethnicity in Communication | Human Resources Management

Research Areas

Corporate Governance, Auditing and Risk Management

Publication

Financial Reporting, Regulation and Governance Journal

Volume

3

Issue

1

First Page

30

Last Page

64

ISSN

1449-2318

Publisher

Curtin University of Technology

This document is currently not available here.

Share

COinS