Herberger, T. A., Oehler, A., 2024, The relationship of board diversity and stock performance in monistic and dualistic board structures: Results from Germany and UK, Journal of Corporate Accounting & Finance 35(2), 135-146.

Abstract
The analysis of the relationship between board diversity and corporate
performance is a well-documented area of research. Our analysis of the stock
market in Germany and the United Kingdom (UK) from2005 to 2018 contributes
to the literature by considering different corporate constitutions (monistic and
dualistic) as well as a variety of diversity factors and diversity potential factors in
a uniform analytical framework. We implement the stock price performance as
a company performance proxy because this can be observed more easily by nonprofessional investors than Tobin’s Q, commonly used in former studies, and
represents a puremarket-based view of the company performance. Based on generalized least squares panel regressions (GLS), our results reveal no significant
difference between monistic and dualistic corporate constitutions regarding a
possible relationship between diversity and company performance. They support
former studies that the size of a top management board is significantly negatively
related to company performance in the long run. Furthermore, no significant
correlation can be found between changes in a board in a fiscal year and company
performance, which was analyzed for the first time in such a framework.

Keywords

Corporate Governance and Control, Diversity, Financial Performance

JEL Classifications

G15, G30

Zuvor:

Herberger, T. A., Oehler, A., 2023, The Relationship of Board Diversity and Stock Performance in Monistic and Dualistic Board Structures: Results from Germany and UK; 43rd EBES Conference, April 12-14; School of Finance and Accounting at Westminster Business School, University of Westminster, Finance and Accounting 2023 Annual Research Symposium, June 15-16; Operations Research 2023, August 29 - September 1.