Pregledni rad

BOARD DIVERSITY, NETWORK AND FIRM VALUE

Thitima Sitthipongpanich ; Dhurakij Pundit University, Thailand
Piruna Polsiri ; Dhurakij Pundit University, Thailand

Sažetak

Using a large sample analysis of Thai listed firms, we address an important question. Do board diversity
and network add value to firms? This article extends the debate on the benefits and costs of board
diversity and network and their effect on the broader picture of corporate governance. Moreover, this
article sheds light on the necessity of applying the resource dependence theory in research about
boards of directors, in addition to the agency theory. We find that diversity in age and study majors are
positively related to Tobin’s Q ratio, while diversity in educational levels leads to lower firm value. Our
results suggest that boards with diverse age groups and study areas might generate useful advice and
complement each other; however, those with diverse educational levels might create costs due to
possible conflicts and a lack of coordination and communication. In addition, the results show that
alumni networks have a positive effect on Tobin’s Q ratio. The findings further suggest that an alumni
network is significant to firms because it could help firms obtain external resources. Overall, our
research provides significant findings for policy makers to widen viewpoints about corporate
governance practices and human resource development in emerging countries.

Ključne riječi

Board of Directors; Diversity; Firm Value; Network; Thailand

Hrčak ID:

128545

URI

https://hrcak.srce.hr/128545

Datum izdavanja:

1.3.2014.

Posjeta: 1.171 *