Dublin Core
Title
DETERMINANTS OF BOARD DIVERSITY FOR FIRMS LISTED ON THE ZIMBABWE STOCK EXCHANGE
Creator
ZVINAIYE CHIMBADZWA
LIGHTON DUBE
EMMANUEL GUVEYA
Description
Board diversity is a topical discourse in firm governance and
management. Diversity came up as a way of eliminating
discrimination in employment and making sure there is equality,
inclusion and affirmative action in the way firms do business. Board
diversity has produced mixed results in relation to firm performance.
On the one hand, diversity enables good governance to take place,
ensures satisfaction of stakeholders and the firm to attain
competitive advantage. Contrary, diversity may come with
difficulties in communication, boardroom fights and decreased
productivity among a plethora of negative contributions. The study
investigates the various factors that affect board diversity from a
Zimbabwean context.
The Zimbabwe Stock Exchange’s 35 firms’ data is analysed to
estimate the relationship between board diversity and firm
performance. The study employed the quantitative methodology to
establish factors that influence board diversity on firm performance
of thirty-five (35) firms listed on the Zimbabwe Stock Exchange
using panel data collected over the period 2009 – 2015.
The major factors that promote diversity are firm size, liquidity,
leverage, operating experience (years listed), market share (Tobin’s
Q) and being in the service sector. On the other hand, board size,
being in the food, financial, real and industrial and manufacturing
sectors negatively and significantly influence diversity.
Based on the above results, the study recommends that companies
should come up with diversity-enabling policies to enhance firm
performance.
management. Diversity came up as a way of eliminating
discrimination in employment and making sure there is equality,
inclusion and affirmative action in the way firms do business. Board
diversity has produced mixed results in relation to firm performance.
On the one hand, diversity enables good governance to take place,
ensures satisfaction of stakeholders and the firm to attain
competitive advantage. Contrary, diversity may come with
difficulties in communication, boardroom fights and decreased
productivity among a plethora of negative contributions. The study
investigates the various factors that affect board diversity from a
Zimbabwean context.
The Zimbabwe Stock Exchange’s 35 firms’ data is analysed to
estimate the relationship between board diversity and firm
performance. The study employed the quantitative methodology to
establish factors that influence board diversity on firm performance
of thirty-five (35) firms listed on the Zimbabwe Stock Exchange
using panel data collected over the period 2009 – 2015.
The major factors that promote diversity are firm size, liquidity,
leverage, operating experience (years listed), market share (Tobin’s
Q) and being in the service sector. On the other hand, board size,
being in the food, financial, real and industrial and manufacturing
sectors negatively and significantly influence diversity.
Based on the above results, the study recommends that companies
should come up with diversity-enabling policies to enhance firm
performance.
Publisher
University of Sistan and Baluchestan
Date
2024
Position: 24 (54 views)