Edited By Rasim Yilmaz, Günther Löschnigg, Hasan Arslan and Mehmet Ali Icbay
Relationship between Women Participation on Boards and Financial Performance: Evidence From Turkey
The issues related to corporate boards and top management gained remarkable attention in recent years. Heterogeneity at the top of a firm is believed to enhance a wider perspective in problem solving and in the decision making process. As a result, it is argued that heterogenity at the top may create a better understanding of the complexities of the external environment (Campell and Mínguez-Vera, 2008). Furthermore, a growing body of literature focuses on issues related to corporate boards as they are recognised as an important corporate governance control mechanism. It is mentioned that boards have to be heterogenic in order to perform their monitoring role effectively (Campell and Mínguez-Vera, 2008). In this respect, woman participation on boards is assumed to be one of the most important measures for heterogeneity. Examining the literature, studies analysing the relationship between woman participation on boards and a firms’ financial performance are remarkable. Although, the earlier evidence generally comes from developed economies such as the United States (US) (Carter et. al., 2003) and the United Kingdom (UK) (Brammer et. al., 2007); latter studies are realised in different countries such as Malaysia (Abdullah, Ismail and Nachum, 2013), New Zealand (Bathula, 2008), Netherlands (Lukerath-Rovers, 2011), Norway (Bohren and Strom, 2005), Denmark (Rose, 2004), and Spain (Campbell and Mínguez-Vera, 2008). As a contribution to the existing literature, this study focuses on the relationship between gender diversity on boards/in top management and a firms’ financial performance in a developing country context,...