Ekonomika a management
TOP MANAGEMENT TEAM COMPOSITION AND FINANCIAL PERFORMANCE: EXAMINING THE ROLE OF GENDER DIVERSITY
The issue of female representation in top management teams is a growing area of interest among practitioners, policymakers, and researchers around the world (Ahmadi, Nakaa, & Bouri, 2018). In particular, there has been an ongoing debate about whether gender diversity in top management teams relates to company performance, more specifically financial performance (Farag & Mallin, 2017; Hernandez-Nicolás et al., 2015). The existing body of literature suggests that top management team gender diversity has both positive and negative effects on company performance. Additionally, the results of empirical studies on this issue remain mixed (e.g., Ali & Konrad, 2017; Eger & Indruchová, 2014; Julizaerma & Sori, 2012). On the one hand, there is evidence that gender diversity in top management is associated with higher financial performance (e.g., Campbell & Mínguez-Vera, 2008; Perryman, Fernando, & Tripathy, 2016).
Jméno a příjmení autora:
Dana Egerová, Marta Nosková
Top management team, gender diversity, financial performance, critical mass, upper echelon theory
DOI (& full text):
Despite the growing research on the effect of top management team gender diversity on company financial performance, the results remain inconclusive. The theoretical framework guiding this study…více
Despite the growing research on the effect of top management team gender diversity on company financial performance, the results remain inconclusive. The theoretical framework guiding this study includes the upper echelons theory and critical mass theory. Under the upper echelons theory framework, the study investigates whether female participation in top management teams positively influences company financial performance. Based on critical mass theory, the study attempts to determine what percentage of women in a top management team constitutes a critical mass. Unlike most previous studies, both theories are applied to only the context of 823 small- and mediumsized enterprises (SMEs) with a workforce between 50 to 250 employees in the manufacturing sector in the Czech Republic. The findings indicate that the premises of the upper echelons theory are also applicable to SMEs. At the same time, the findings show limited support for critical mass theory. More specifically, this study does not support a linear relationship between the number of women in top management team and financial performance and only partially supports a U-shaped curvilinear relationship. The implications of the findings and suggestions for future research are also discussed. In sum, this study brings new insight to the area of gender diversity in top management and advances the gender diversity literature’s understanding of the relationship between top management team composition and company financial performance. Moreover, the study provides a better understanding of the key role of a critical mass in top management teams.
Ekonomika a management