Original scientific paper
https://doi.org/10.1080/1331677X.2021.1965002
Board gender diversity and sustainable growth rate: Chinese evidence
Qurat Ul Ain
orcid.org/0000-0002-8053-4613
Xianghui Yuan
Hafiz Mustansar Javaid
Muhammad Naeem
Abstract
This study investigates the impact of women directors on a firm’s
sustainable growth rate. Using data from 2003 to 2017 for
Chinese listed firms, we found a positive relationship between
women directors and a sustainable growth rate. Our study also
contributes to institutional theory by providing evidence that
this positive relationship is more effective in legal-person-controlled firms than state-controlled firms. In comparison, women
independent directors have a stronger influence than women
executive directors on sustainable growth. Similarly, board gender diversity with three or more female directors substantially
affects firms’ sustainable growth, consistent with critical mass
theory. Our study’s findings are robust in terms of alternative
estimations techniques, variable specifications, and different
identification strategies, such as two-stage least squares and
propensity score matching. Our study provides novel evidence
on women directors’ role in increasing firms’ sustainable growth
rate by adding a new dimension to the ongoing debate in the
gender diversity literature.
Keywords
Board gender diversity; sustainable growth; corporate governance; female board directors; ownership structure
Hrčak ID:
302047
URI
Publication date:
31.3.2023.
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