Assessing the Impact of Diversity, Corporate Governance and Management Demographics on Firm Performance
Journal of Law and Financial Management, Vol. 9, No. 1, pp. 14-27, June 2010
19 Pages Posted: 13 Feb 2011
Date Written: February 10, 2011
Abstract
Assembling the right management team is a challenging and complex process in today’s global economy. The recent worldwide financial meltdown has simply underscored the importance of a far-sighted and balanced management organisation. The characteristics and composition of the management team along with effective corporate governance policies can also play a role in addressing these challenges. The purpose of this paper is to illustrate how analytical modeling can be used in helping shape organisational teams. A panel data analysis of S&P 1500 firms for the period 2004 to 2007 was performed. The results from the analysis show that management team diversity and commitment to good corporate governance both have a positive impact on firm performance as measured by Tobin’s Q.
Keywords: finance, law
JEL Classification: M40, M41
Suggested Citation: Suggested Citation