Impact of Gender and Ethnic Composition of South African Boards of Directors on Intellectual Capital Performance

• Main Author: Van der Zahn, Jean-Luc Wolfgang Mitchell
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2006
• Subjects: Accounting; Corporate Finance; Gender, Race, Sexuality, and Ethnicity in Communication; Human Resources Management
• Online Access: https://ink.library.smu.edu.sg/soa_research/47; https://ink.library.smu.edu.sg/context/soa_research/article/1046/viewcontent/10_22495_cbv2i1art1.pdf
• Institution: Singapore Management University

This study examines the association between the gender and ethnic composition of boards of directors and firm performance in a transitional nation. In contrast to prior research that largely focuses on firm performance within a financial context, this study concentrates on intellectual capital performance. Using data collected from 84 South African, empirical results indicate a positive association between the percentage of female and non-white directors on the board and a firm’s intellectual capital performance. Additional analysis shows the designation of female directors as an insider has a negative effect of intellectual capital performance. Designation of female and non-white directors as outsiders, meanwhile, has 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 board and intellectual capital performance.