Research Article
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THE EFFECT OF FEMALE MEMBERS ON FIRM BOARDS ON THE COMPANY RISK: A CASE OF BIST

Year 2020, Volume: 1 Issue: 1, 38 - 64, 28.03.2020

Mehmet Gözel

Abstract

The aim of this study is to investigate the relationship between the presence of female board members and firm risk with a sample of non-financial companies quoted on the Borsa Istanbul between the years 2012 and 2016. Firm beta and financial leverage ratios are employed as risk proxies, and pooled regression and fixed effects models are utilized to test the hypoteses. The results of the current study suggest that there is no statistically significant relationship between the presence of female board board members and firm risk.

Keywords

Corporate Governance Female Board Members Firm Risk

References

  • Adams, R. B., & Ferreira, D. (2009). Women in the boardroom and their impact on governance and performance. Journal of financial economics, 94(2), 291-309.
  • Adams, R. B., & Ragunathan, V. (2017). Lehman sisters. Available at SSRN 3046451.
  • Adnan, M. F., Sabli, N., Rashid, M. Z. A., Hashim, A., Paino, H., & Abdullah, A. (2016). The Impact of Educational Level of Board of Directors on Firms’ Performance. In Regional Conference on Science, Technology and Social Sciences (RCSTSS 2014) (pp. 37-48). Springer, Singapore.
  • Arioglu, E. (2014). Demographic Diversity in the Boardroom: Evidence from Borsa Istanbul. Research Journal of Business and Management, 2(1), 18-36
  • Arioglu, E. (2018a). Do Director Age Diversity and Values Affect Company Performance and Risk?. Available at SSRN 3295848.
  • Arioglu, E. (2018b). Gender Diversity and Company Performance: The Effects of Director Affiliation.
  • Arioglu, E. (2018c). Gender Diversity and Earnings Management: The Effects of Director Characteristics. Available at SSRN 3291150.
  • Aven, T. (2008). Risk analysis: assessing uncertainties beyond expected values and probabilities.. Wiley, Chichester.
  • Beck, T., Behr, P., & Guettler, A. (2012). Gender and banking: are women better loan officers?. Review of Finance, 17(4), 1279-1321.
  • Beck, T., Behr, P., Guettler, A., 2013. Gender and banking: are women better loan officers? Rev. Financ. 17, 1279–1321.
  • Berger, A.N., Kick, T., Schaeck, K., 2014. Executive board composition and bank risk taking. Journal of Corporate Finance. 28, 48–65.
  • Bhuiyan, M., Uddin, B., Cheema, M. A., & Man, Y. (2017). Risk committee, corporate risk-taking and firm value. In 2017 Auckland Finance Meeting.
  • Byrnes, J. P., Miller, D. C., & Schafer, W. D. (1999). Gender differences in risk taking: A meta-analysis. Psychological bulletin, 125(3), 367.
  • Chapman, C., & Ward, S. (2003). Project risk management: processes, techniques, and insights. Wiley. Coles, J. L., Daniel, N. D., Naveen, L. (2006). Managerial incentives and risk-taking. Journal of financial Economics, 79(2), 431-468.
  • Deloitte. (2008). Kurumsal Yönetim ve İtibarın Sigortası: “Denetim Komitesi”. İç Denetim Dergisi, 21, 40-44.
  • Dey, D. K., & Chauhan, Y. K. (2009). Board Composition and Performance. The IUP Journal of Corporate Governance , 8 (2), 7-19.
  • Egonzehnder, (2014). Yönetim Kurulu Kadın Yönetici Çeşitliliği Oranları. https://www.egonzehnder.com/global-board-diversity-tracker/customize-the-data?report=Board+size+%2F+Women+per+board&subgroup=Global&year=2014, Erişim Tarihi: 03.10.2019
  • Erişmiş, A. (2013). Yönetim Kurulu Yapısının BİST Şirketlerinin Performansı Üzerine Etkisi. Doktora Tezi. Çukurova Üniversitesi, Sosyal Bilimler Enstitüsü, İşletme Anabilim Dalı, Adana.
  • Faccio, M., Marchica, M. & Mura, R., 2016. CEO gender, corporate risk-taking, and the efficiency of capital allocation. Journal of Corporate Finance, 39, 193-209.
  • Fama, E. F., & Jensen, M. C. (1983). Agency Problems and Residual Claims.Journal of Law and Economics, 26(2), 327-349.
  • Farrell, K. A., & Hersch, P. L. (2005). Additions to corporate boards: the effect of gender. Journal of Corporate finance, 11(1-2), 85-106.
  • Fehr-Duda, H., De Gennaro, M., & Schubert, R. (2006). Gender, financial risk, and probability weights. Theory and decision, 60(2-3), 283-313.
  • Finkelstein, S., ve Mooney, A. C., (2003). Not The Usual Suspects: How to Use Board Process to Make Boards Better. Academy of Management Executive, 17(2), 101-113.
  • Gujarati, Damodar N. (2003). Basic econometrics. (International Edition), USA, McGraw Hill
  • Güzeldere, H. (2015). Kurumsal Şeffaflık, Firma Değeri ve Firma Performansları İlişkisi: BİST İncelemesi. Doktora Tezi, İstanbul Üniversitesi, Sosyal Bilimler Enstitüsü, İşletme Anabilim Dalı, Finans Bilim Dalı, İstanbul.
  • Harris, M., & Raviv, A. (2006). A theory of board control and size. The Review of Financial Studies, 21(4), 1797-1832.
  • Hassan, F. (2019). The Impact of Audit Committees on firm Performance: An Aplication on BIST Companies. Yüksek Lisans Tezi. Çukurova Üniversitesi, Sosyal Bilimler Enstitüsü, İşletme Anabilim Dalı, Adana.
  • Hermalin, B. E., & Weisbach, M. S. (2003). Boards of directors as an endogenously determined institution: A survey of the economic literature . FRBNY Economic Policy Review. 6-26.
  • Hsiao, C. (2003). Analysis of panel data. UK: Cambridge University Press. Second Edition.
  • Huang, J., & Kisgen, D. J. (2013). Gender and corporate finance: Are male executives overconfident relative to female executives?. Journal of Financial Economics, 108(3), 822-839.
  • Kalsie, A., & Shrivastav, S. M. (2016). Analysis of Board Size and Firm Performance: Evidence from NSE Companies Using Panel Data Approach. Indian Journal of Corporate Governance, 9(2), 148–172.
  • Khazanchi, D. 1995. Unethical behavior in information systems: The gender factor. Journal of Business Ethics 14 (9), 741-749.
  • Lenard, M., Yu, B., Anne York, E., & Wu, S. (2014). Impact of board gender diversity on firm risk. Managerial Finance, 40(8), 787-803.
  • Levi, M.D., Li, K., Zhang, F., 2013. Director gender and mergers and acquisitions. Journal of Corporate. Finance. 28, 185–200.
  • Lückerath-Rovers, M. (2013). Women on boards and firm performance. Journal of Management & Governance, 17(2), 491-509.
  • Malgharni, A. M., & Karimnia, M. (2014). Investigate the Relationship Between Unsystematic Risk and Profit Growth of Accepted Companies in Tehran Stock Exchange. Singaporean Journal of Business, Economics and Management Studies, 51(1448), 1-8.
  • Matsa, D.A., Miller, A.R., 2013. A female style in corporate leadership? Evidence from quotas. Am. Econ. J. Appl. Econ. 5, 136–169.
  • Minton, B. A., Taillard, J. P., & Williamson, R. (2014). Financial expertise of the board, risk taking, and performance: Evidence from bank holding companies. Journal of Financial and Quantitative Analysis, 49(2), 351-380.
  • Murphy, E. V. (2012, May). What Is Systemic Risk? Does It Apply to Recent JP Morgan Losses?. Library of Congress, Congressional Research Service. 1-11.
  • OECD (2004), Corporate Governance-A Survey Of OECD Countries, OECD yayınları, Paris, 25-31.
  • Özdündar, G. (2017). Türkiye’ de Yönetim Kurullarında Kadın Yönetici İstihdamı: 2011 Sonrası. Yüksek Lisans Tezi, Karadeniz Üniversitesi, Sosyal Bilimler Enstitüsü, İşletme Anabilim Dalı, Trabzon.
  • Pazarlıoğlu, M. V., & Gürler, Ö. K. (2007). Telekomünikasyon yatırımları ve ekonomik büyüme: panel veri yaklaşımı. Finans Politik ve Ekonomik Yorumlar, 44(508), 35-43.
  • Powell, M., D. Ansic. 1997. Gender differences in risk behaviour in financial decisionmaking: An experimental analysis. Journal of Economic Psychology 18 (6), 605-628.
  • Rosenberg, B. (1985). Prediction of Common Stock Betas. The Journal of Portfolio Management Winter 11 (2), 5-14.
  • Rosener, J.: 1990. "Ways women lead", Harvard Business Review,November-December: 119-125.
  • Sila, V., Gonzalez, A., & Hagendorff, J. (2016). Women on board: Does boardroom gender diversity affect firm risk? Journal of Corporate Finance, 36, 26-53.
  • Smith, N., Smith, V., & Verner, M. (2006). Do women in top management affect firm performance? A panel study of 2,500 Danish firms. International Journal of productivity and Performance management, 55(7), 569-593.
  • Subramaniam, N., McManus, L., & Zhang, J. (2009). Corporate governance, firm characteristics and risk management committee formation in Australian companies. Managerial Auditing Journal, 24(4), 316-339.
  • Şahin, K., Eser, B., Kaplan, T., & Özdündar, G. (2018). Yönetim Kurullarında Kadın Yönetici Temsili: Türkiye’de Yönetim Kurulları Yapısının Cinsiyet Bağlamında İncelenmesi. Uluslararası Yönetim İktisat ve İşletme Dergisi, 14(4), 1147-1166.
  • Tariq, W., Ali, İ., Ibrahim, M., Asim, M. ve Rehman, N.U., (2014). Theory and Empirical Evidence on Corporate Governance From Banking Sector of Pakistan. Business and Economic Research ISSN 2162-4860, 4(1).
  • Tepeli, Y. (2018). Yönetim Muhasebesi Açısından Sistematik Risk ile Mali Oranlar Arasındaki İlişkinin Analizi ve Halka Açık Olmayan Şirketlerde Sistematik Riskin Tahmin Edilmesi: Turizm Sektörü’ nde Bir Araştırma. Doktora Tezi, Muğla Sıtkı Koçman Üniversitesi, Sosyal Bilimler Enstitüsü, İşletme Anabilim Dalı, Muğla.
  • Terjesen, S., Singh, V. 2008. Female Presence on Corporate Boards: A Multi-Country Study of Environmental Context. Journal of Business Ethics, 83(1), 55-63.
  • Uğurlu, M., Erdaş, M. L., & Eroğlu, A. (2012). Portföy Yönetiminde Sistematik Olmayan Riski Azaltacak Bir Doğrusal Programlama Model Önerisi. Çankırı Karatekin Üniversitesi İİBF Dergisi, 6(1), 147-174.
  • Ülgen, H., Mirze, S. K. (2007). İşletmelerde Stratejik Yönetim. (Dördüncü Baskı) İstanbul Arıkan Yayın Evi.
  • Verbeek, M. (2004). A guide to modern econometrics. John Wiley & Sons. Second edition.
  • Wilson, N., Altanlar, A., 2011. Director characteristics, gender balance and insolvency risk: An empirical study. Unpublished Working Paper.
  • World Bank (1999). Ukranian Corporate Governance Manual, 49-50.
  • Yased (2016). Kadınların üst yönetimde temsilinin arttırılmasına yönelik uygulamalar ve öneriler. https://www.yased.org.tr/ReportFiles/2016/YASED-KadinRaporu.pdf, Erişim Tarihi: 03.10.2019

ŞİRKET YÖNETİM KURULLARINDAKİ KADIN ÜYELERİN FİRMA RİSKİNE ETKİSİ: BİST ÖRNEĞİ

Year 2020, Volume: 1 Issue: 1, 38 - 64, 28.03.2020

Mehmet Gözel

Abstract

Bu çalışmanın amacı; Borsa İstanbul’da payları işlem gören firmaların yönetim kurullarında görev yapan kadın üyelerin firma riskine olan etkisini incelemektir. Bu bağlamda; çalışma kapsamında, 2012-2016 dönemleri arasında Borsa İstanbul’da payları işlem gören finansal olmayan şirketler, sistematik risk ölçütü beta ve finansal kaldıraç oranı ile analiz edilmiştir. İncelenen şirketlere ait verileri test edebilmek amacıyla da, havuzlanmış regresyon ve sabit etkiler modelleri kullanılmıştır. Yapılan araştırma ve testler sonucunda, yönetim kurullarında bulunan kadın üyelerin firma riskine etkisinin olmadığı saptanmıştır.

Keywords

Kurumsal Yönetim Kadın Yönetim Kurulu Üyeleri Firma Riski

References

  • Adams, R. B., & Ferreira, D. (2009). Women in the boardroom and their impact on governance and performance. Journal of financial economics, 94(2), 291-309.
  • Adams, R. B., & Ragunathan, V. (2017). Lehman sisters. Available at SSRN 3046451.
  • Adnan, M. F., Sabli, N., Rashid, M. Z. A., Hashim, A., Paino, H., & Abdullah, A. (2016). The Impact of Educational Level of Board of Directors on Firms’ Performance. In Regional Conference on Science, Technology and Social Sciences (RCSTSS 2014) (pp. 37-48). Springer, Singapore.
  • Arioglu, E. (2014). Demographic Diversity in the Boardroom: Evidence from Borsa Istanbul. Research Journal of Business and Management, 2(1), 18-36
  • Arioglu, E. (2018a). Do Director Age Diversity and Values Affect Company Performance and Risk?. Available at SSRN 3295848.
  • Arioglu, E. (2018b). Gender Diversity and Company Performance: The Effects of Director Affiliation.
  • Arioglu, E. (2018c). Gender Diversity and Earnings Management: The Effects of Director Characteristics. Available at SSRN 3291150.
  • Aven, T. (2008). Risk analysis: assessing uncertainties beyond expected values and probabilities.. Wiley, Chichester.
  • Beck, T., Behr, P., & Guettler, A. (2012). Gender and banking: are women better loan officers?. Review of Finance, 17(4), 1279-1321.
  • Beck, T., Behr, P., Guettler, A., 2013. Gender and banking: are women better loan officers? Rev. Financ. 17, 1279–1321.
  • Berger, A.N., Kick, T., Schaeck, K., 2014. Executive board composition and bank risk taking. Journal of Corporate Finance. 28, 48–65.
  • Bhuiyan, M., Uddin, B., Cheema, M. A., & Man, Y. (2017). Risk committee, corporate risk-taking and firm value. In 2017 Auckland Finance Meeting.
  • Byrnes, J. P., Miller, D. C., & Schafer, W. D. (1999). Gender differences in risk taking: A meta-analysis. Psychological bulletin, 125(3), 367.
  • Chapman, C., & Ward, S. (2003). Project risk management: processes, techniques, and insights. Wiley. Coles, J. L., Daniel, N. D., Naveen, L. (2006). Managerial incentives and risk-taking. Journal of financial Economics, 79(2), 431-468.
  • Deloitte. (2008). Kurumsal Yönetim ve İtibarın Sigortası: “Denetim Komitesi”. İç Denetim Dergisi, 21, 40-44.
  • Dey, D. K., & Chauhan, Y. K. (2009). Board Composition and Performance. The IUP Journal of Corporate Governance , 8 (2), 7-19.
  • Egonzehnder, (2014). Yönetim Kurulu Kadın Yönetici Çeşitliliği Oranları. https://www.egonzehnder.com/global-board-diversity-tracker/customize-the-data?report=Board+size+%2F+Women+per+board&subgroup=Global&year=2014, Erişim Tarihi: 03.10.2019
  • Erişmiş, A. (2013). Yönetim Kurulu Yapısının BİST Şirketlerinin Performansı Üzerine Etkisi. Doktora Tezi. Çukurova Üniversitesi, Sosyal Bilimler Enstitüsü, İşletme Anabilim Dalı, Adana.
  • Faccio, M., Marchica, M. & Mura, R., 2016. CEO gender, corporate risk-taking, and the efficiency of capital allocation. Journal of Corporate Finance, 39, 193-209.
  • Fama, E. F., & Jensen, M. C. (1983). Agency Problems and Residual Claims.Journal of Law and Economics, 26(2), 327-349.
  • Farrell, K. A., & Hersch, P. L. (2005). Additions to corporate boards: the effect of gender. Journal of Corporate finance, 11(1-2), 85-106.
  • Fehr-Duda, H., De Gennaro, M., & Schubert, R. (2006). Gender, financial risk, and probability weights. Theory and decision, 60(2-3), 283-313.
  • Finkelstein, S., ve Mooney, A. C., (2003). Not The Usual Suspects: How to Use Board Process to Make Boards Better. Academy of Management Executive, 17(2), 101-113.
  • Gujarati, Damodar N. (2003). Basic econometrics. (International Edition), USA, McGraw Hill
  • Güzeldere, H. (2015). Kurumsal Şeffaflık, Firma Değeri ve Firma Performansları İlişkisi: BİST İncelemesi. Doktora Tezi, İstanbul Üniversitesi, Sosyal Bilimler Enstitüsü, İşletme Anabilim Dalı, Finans Bilim Dalı, İstanbul.
  • Harris, M., & Raviv, A. (2006). A theory of board control and size. The Review of Financial Studies, 21(4), 1797-1832.
  • Hassan, F. (2019). The Impact of Audit Committees on firm Performance: An Aplication on BIST Companies. Yüksek Lisans Tezi. Çukurova Üniversitesi, Sosyal Bilimler Enstitüsü, İşletme Anabilim Dalı, Adana.
  • Hermalin, B. E., & Weisbach, M. S. (2003). Boards of directors as an endogenously determined institution: A survey of the economic literature . FRBNY Economic Policy Review. 6-26.
  • Hsiao, C. (2003). Analysis of panel data. UK: Cambridge University Press. Second Edition.
  • Huang, J., & Kisgen, D. J. (2013). Gender and corporate finance: Are male executives overconfident relative to female executives?. Journal of Financial Economics, 108(3), 822-839.
  • Kalsie, A., & Shrivastav, S. M. (2016). Analysis of Board Size and Firm Performance: Evidence from NSE Companies Using Panel Data Approach. Indian Journal of Corporate Governance, 9(2), 148–172.
  • Khazanchi, D. 1995. Unethical behavior in information systems: The gender factor. Journal of Business Ethics 14 (9), 741-749.
  • Lenard, M., Yu, B., Anne York, E., & Wu, S. (2014). Impact of board gender diversity on firm risk. Managerial Finance, 40(8), 787-803.
  • Levi, M.D., Li, K., Zhang, F., 2013. Director gender and mergers and acquisitions. Journal of Corporate. Finance. 28, 185–200.
  • Lückerath-Rovers, M. (2013). Women on boards and firm performance. Journal of Management & Governance, 17(2), 491-509.
  • Malgharni, A. M., & Karimnia, M. (2014). Investigate the Relationship Between Unsystematic Risk and Profit Growth of Accepted Companies in Tehran Stock Exchange. Singaporean Journal of Business, Economics and Management Studies, 51(1448), 1-8.
  • Matsa, D.A., Miller, A.R., 2013. A female style in corporate leadership? Evidence from quotas. Am. Econ. J. Appl. Econ. 5, 136–169.
  • Minton, B. A., Taillard, J. P., & Williamson, R. (2014). Financial expertise of the board, risk taking, and performance: Evidence from bank holding companies. Journal of Financial and Quantitative Analysis, 49(2), 351-380.
  • Murphy, E. V. (2012, May). What Is Systemic Risk? Does It Apply to Recent JP Morgan Losses?. Library of Congress, Congressional Research Service. 1-11.
  • OECD (2004), Corporate Governance-A Survey Of OECD Countries, OECD yayınları, Paris, 25-31.
  • Özdündar, G. (2017). Türkiye’ de Yönetim Kurullarında Kadın Yönetici İstihdamı: 2011 Sonrası. Yüksek Lisans Tezi, Karadeniz Üniversitesi, Sosyal Bilimler Enstitüsü, İşletme Anabilim Dalı, Trabzon.
  • Pazarlıoğlu, M. V., & Gürler, Ö. K. (2007). Telekomünikasyon yatırımları ve ekonomik büyüme: panel veri yaklaşımı. Finans Politik ve Ekonomik Yorumlar, 44(508), 35-43.
  • Powell, M., D. Ansic. 1997. Gender differences in risk behaviour in financial decisionmaking: An experimental analysis. Journal of Economic Psychology 18 (6), 605-628.
  • Rosenberg, B. (1985). Prediction of Common Stock Betas. The Journal of Portfolio Management Winter 11 (2), 5-14.
  • Rosener, J.: 1990. "Ways women lead", Harvard Business Review,November-December: 119-125.
  • Sila, V., Gonzalez, A., & Hagendorff, J. (2016). Women on board: Does boardroom gender diversity affect firm risk? Journal of Corporate Finance, 36, 26-53.
  • Smith, N., Smith, V., & Verner, M. (2006). Do women in top management affect firm performance? A panel study of 2,500 Danish firms. International Journal of productivity and Performance management, 55(7), 569-593.
  • Subramaniam, N., McManus, L., & Zhang, J. (2009). Corporate governance, firm characteristics and risk management committee formation in Australian companies. Managerial Auditing Journal, 24(4), 316-339.
  • Şahin, K., Eser, B., Kaplan, T., & Özdündar, G. (2018). Yönetim Kurullarında Kadın Yönetici Temsili: Türkiye’de Yönetim Kurulları Yapısının Cinsiyet Bağlamında İncelenmesi. Uluslararası Yönetim İktisat ve İşletme Dergisi, 14(4), 1147-1166.
  • Tariq, W., Ali, İ., Ibrahim, M., Asim, M. ve Rehman, N.U., (2014). Theory and Empirical Evidence on Corporate Governance From Banking Sector of Pakistan. Business and Economic Research ISSN 2162-4860, 4(1).
  • Tepeli, Y. (2018). Yönetim Muhasebesi Açısından Sistematik Risk ile Mali Oranlar Arasındaki İlişkinin Analizi ve Halka Açık Olmayan Şirketlerde Sistematik Riskin Tahmin Edilmesi: Turizm Sektörü’ nde Bir Araştırma. Doktora Tezi, Muğla Sıtkı Koçman Üniversitesi, Sosyal Bilimler Enstitüsü, İşletme Anabilim Dalı, Muğla.
  • Terjesen, S., Singh, V. 2008. Female Presence on Corporate Boards: A Multi-Country Study of Environmental Context. Journal of Business Ethics, 83(1), 55-63.
  • Uğurlu, M., Erdaş, M. L., & Eroğlu, A. (2012). Portföy Yönetiminde Sistematik Olmayan Riski Azaltacak Bir Doğrusal Programlama Model Önerisi. Çankırı Karatekin Üniversitesi İİBF Dergisi, 6(1), 147-174.
  • Ülgen, H., Mirze, S. K. (2007). İşletmelerde Stratejik Yönetim. (Dördüncü Baskı) İstanbul Arıkan Yayın Evi.
  • Verbeek, M. (2004). A guide to modern econometrics. John Wiley & Sons. Second edition.
  • Wilson, N., Altanlar, A., 2011. Director characteristics, gender balance and insolvency risk: An empirical study. Unpublished Working Paper.
  • World Bank (1999). Ukranian Corporate Governance Manual, 49-50.
  • Yased (2016). Kadınların üst yönetimde temsilinin arttırılmasına yönelik uygulamalar ve öneriler. https://www.yased.org.tr/ReportFiles/2016/YASED-KadinRaporu.pdf, Erişim Tarihi: 03.10.2019
There are 58 citations in total.

Details

Primary Language Turkish
Subjects Finance, Business Administration
Journal Section Articles
Authors

Mehmet Gözel 0000-0002-0955-3344

Publication Date March 28, 2020
Acceptance Date March 23, 2020
Published in Issue Year 2020 Volume: 1 Issue: 1

Cite

APA Gözel, M. (2020). ŞİRKET YÖNETİM KURULLARINDAKİ KADIN ÜYELERİN FİRMA RİSKİNE ETKİSİ: BİST ÖRNEĞİ. Malatya Turgut Özal Üniversitesi İşletme Ve Yönetim Bilimleri Dergisi, 1(1), 38-64.
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