Author(s): Gill, Navjeet
Date: 2018
Persistent ID: http://hdl.handle.net/10362/36552
Origin: Repositório Institucional da UNL
Subject(s): Corporate governance; Gender diversity; Racial diversity; Board of directors; FTSE100; Demographic diversity; Cognitive diversity; United Kingdom
This empirical research examines the relationship between board’s diversity and firm performance, providing a comprehensive quantitative analysis between diversity factors (demographic - gender and race, cognitive - age, education, role and network) and financial factors (ROA, ROE, ROIC, asset turnover and current ratio) in the component companies of the FTSE 100 index. The dataset also includes a wide array of information about 1053 board members. The results indicate that a diverse board positively impacts ROA, ROIC, asset turnover and current ratio but were insignificant for ROE. It proves that diversity leads to better social reputation, performance and financial performance.
