Women participation in corporate boards: quantile regression approach
Akshita Arora; Tarun Kumar Soni
Afro-Asian J. of Finance and Accounting, Vol. 13, No. 1 (2023) pp. 54 - 67
Our study unfolds the stylised facts on women directorship in corporate boards for Indian listed companies. We analyse women directorships across different sectors, firm age groups, different categories of board sizes and year-wise and then investigate the impact of women directors on firm performance using panel fixed effects and pooled quantile regression approach. The panel data framework has been structured for a dataset of 442 companies for the time period 2013-2019. The women engagement in boardroom has advanced from meagre 5% in 2013 to 14% in 2019 after the introduction of gender-based quota in India. The empirical results substantiate that the impact of women directors on firm performance is weak. From the policy perspective, it is evident that amendments in the regulatory framework in board composition have led to more participation of women in leadership positions. However, it is suggested that further reforms are needed for encouraging women directors to act independently and foster more diversity in Indian boardrooms.
Tag: firm performance
The mitigation of agency problem by using corporate governance in emerging markets: evidence from Vietnam
The mitigation of agency problem by using corporate governance in emerging markets: evidence from Vietnam
Duy Thanh Nguyen; Thanh Hai Huyen Truong
Afro-Asian J. of Finance and Accounting, Vol. 12, No. 2 (2022) pp. 143 - 164
The paper examines the impact of ownership structure and board characteristics on firm performance in Vietnam. Obtaining a sample of 300 non-financial companies listed on Ho Chi Minh Stock Exchange (HOSE) and Ha Noi Stock Exchange (HNX) from 2014-2018, the paper reveals the positive impact of foreign and CEO ownership on firm performance, while state ownership, board independence, board gender diversity, and CEO duality yield negative impact due to various institutional factors. This paper also addresses some limitations in term of statistical models in the previous papers, providing more valid and reliable findings. Consequently, several implications have been proposed for company management and regulatory authorities.
Does earnings management impact firm performance? Empirical evidence from India
Does earnings management impact firm performance? Empirical evidence from India
Sunil Kumar; Nikhil Kaushik; Ashutosh Verma
Afro-Asian J. of Finance and Accounting, Vol. 11, No. 4 (2021) pp. 471 - 489
The present study examines the association between firm performance and earnings management (EM) of Indian companies. The study used discretionary accruals (DA) as a proxy for EM and measured DA using balance-sheet approach and cash flow approach. DA was estimated using four models namely, Healy model, DeAngelo model, Jones model and Modified Jones model. The sample consists of companies included in the S&P BSE 500 index after excluding banks and financial institutions. The sample period is from 2007 to 2017 and the data is analysed using panel regression. The findings indicate that the relationship is significant and positive in the current year under the balance sheet approach. However, the relationship is significant and negative for the next year's performance under the cash flow approach. It indicates that earnings through accruals positively influence the firm performance in the current year. However, when the accruals reverse in the next year and cash flows reduce, there is negative influence on the firm performance.
Financial constraints, corporate debt maturity and firm performance: the case of firms in Southeast Asian countries
Financial constraints, corporate debt maturity and firm performance: the case of firms in Southeast Asian countries
Liem Nguyen; Canh Nguyen
Afro-Asian J. of Finance and Accounting, Vol. 10, No. 1 (2020) pp. 48 - 59
This paper aims to examine the (nonlinear) link between debt maturity structure and firm performance in five Southeast Asian emerging markets. This nonlinearity could be the cause of the inconsistency in the extant findings on the impact of debt maturity on firm performance. Our research provides evidence supporting a nonlinear relationship between debt maturity structure and firm performance. The results further show that financially constrained firms are more susceptible to liquidity risk when constrained firms are heavily financed by short-term debt, while when these firms employ much long-term debt the agency cost of debt becomes more worrisome. Therefore, compared to unconstrained peers, financially constrained firms are more likely to benefit from the use of long-term debt at short debt maturity structure, but are more prone to be suffering from long-term debt use when the latter firms are already at long debt maturity structure.