Relationship Between Board Diversity, Corporate Sustainability Practices and Financial Performance of Firms
Research on board diversity (BD) has grown in the last two decades, but it is observed that the association between BD and financial performance (FP) of a firm is inconclusive to date. As the findings of the link between BD and FP are mixed, researchers suggest that the concerned parties might benef...
| Main Authors: | , , |
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| Format: | Article |
| Language: | English |
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UUM Press
2019
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| Subjects: | |
| Online Access: | https://repo.uum.edu.my/id/eprint/30096/1/JES%2001%2002%202019%2022-31.pdf |
| _version_ | 1825806117380292608 |
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| author | Molla, Mohammad Shahansha Ibrahim, Yusnidah Ishak, Zuaini |
| author_facet | Molla, Mohammad Shahansha Ibrahim, Yusnidah Ishak, Zuaini |
| author_sort | Molla, Mohammad Shahansha |
| collection | UUM |
| description | Research on board diversity (BD) has grown in the last two decades, but it is observed that the association between BD and financial performance (FP) of a firm is inconclusive to date. As the findings of the link between BD and FP are mixed, researchers suggest that the concerned parties might benefit from examining the critical effects of any third intervening variable on that relationship. Corporate sustainability practices (CSP) are an extensive management idea that assures long-term financial success and survival of a firm. However, the success of CSP is likely to increase when the board of directors (BOD) consists of diversified people who represent multiple stakeholders interests. Therefore, BD is likely to influence CSP, which, in turn, affects the FP of the firms. Accordingly, this paper proposes CSP as a mediator in the relationship between BD and FP of firms based on Stakeholder Theory. The key purposes of this article are to review the previous literature on BD, CSP, and FP, propose a research framework, and offers suggestions for future empirical research. |
| first_indexed | 2024-07-04T06:43:42Z |
| format | Article |
| id | uum-30096 |
| institution | Universiti Utara Malaysia |
| language | English |
| last_indexed | 2024-07-04T06:43:42Z |
| publishDate | 2019 |
| publisher | UUM Press |
| record_format | eprints |
| spelling | uum-300962023-11-30T08:09:04Z https://repo.uum.edu.my/id/eprint/30096/ Relationship Between Board Diversity, Corporate Sustainability Practices and Financial Performance of Firms Molla, Mohammad Shahansha Ibrahim, Yusnidah Ishak, Zuaini HG Finance Research on board diversity (BD) has grown in the last two decades, but it is observed that the association between BD and financial performance (FP) of a firm is inconclusive to date. As the findings of the link between BD and FP are mixed, researchers suggest that the concerned parties might benefit from examining the critical effects of any third intervening variable on that relationship. Corporate sustainability practices (CSP) are an extensive management idea that assures long-term financial success and survival of a firm. However, the success of CSP is likely to increase when the board of directors (BOD) consists of diversified people who represent multiple stakeholders interests. Therefore, BD is likely to influence CSP, which, in turn, affects the FP of the firms. Accordingly, this paper proposes CSP as a mediator in the relationship between BD and FP of firms based on Stakeholder Theory. The key purposes of this article are to review the previous literature on BD, CSP, and FP, propose a research framework, and offers suggestions for future empirical research. UUM Press 2019 Article PeerReviewed application/pdf en cc4_by https://repo.uum.edu.my/id/eprint/30096/1/JES%2001%2002%202019%2022-31.pdf Molla, Mohammad Shahansha and Ibrahim, Yusnidah and Ishak, Zuaini (2019) Relationship Between Board Diversity, Corporate Sustainability Practices and Financial Performance of Firms. Journal of Economics and Sustainability (JES), 1 (2). pp. 22-31. ISSN 2637-1294 https://e-journal.uum.edu.my/index.php/jes/article/view/12540 |
| spellingShingle | HG Finance Molla, Mohammad Shahansha Ibrahim, Yusnidah Ishak, Zuaini Relationship Between Board Diversity, Corporate Sustainability Practices and Financial Performance of Firms |
| title | Relationship Between Board Diversity, Corporate Sustainability Practices and Financial Performance of Firms |
| title_full | Relationship Between Board Diversity, Corporate Sustainability Practices and Financial Performance of Firms |
| title_fullStr | Relationship Between Board Diversity, Corporate Sustainability Practices and Financial Performance of Firms |
| title_full_unstemmed | Relationship Between Board Diversity, Corporate Sustainability Practices and Financial Performance of Firms |
| title_short | Relationship Between Board Diversity, Corporate Sustainability Practices and Financial Performance of Firms |
| title_sort | relationship between board diversity corporate sustainability practices and financial performance of firms |
| topic | HG Finance |
| url | https://repo.uum.edu.my/id/eprint/30096/1/JES%2001%2002%202019%2022-31.pdf |
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