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Diversity of Board Members and Organizational Performance: An integrative perspective

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  • Christoph M. Treichler

Abstract

This article examines the structure of boards and its effects on the performance of significant board functions. Composition of boards is measured by size, outside director representation and cognitive, as well as demographic diversity. A firm's environment, strategy, structure and culture, and factors attributed to personal characteristics of board members were viewed as important determinants affecting effectiveness of boards. Most important, decisions on board size and composition involve a trade‐off between benefits of diversity and enhanced costs of group development and group decision processes.

Suggested Citation

  • Christoph M. Treichler, 1995. "Diversity of Board Members and Organizational Performance: An integrative perspective," Corporate Governance: An International Review, Wiley Blackwell, vol. 3(4), pages 189-200, October.
    • Handle: RePEc:bla:corgov:v:3:y:1995:i:4:p:189-200
    DOI: 10.1111/j.1467-8683.1995.tb00116.x
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    Cited by:

    1. Tomáš Michalička & Drahoslav Lančarič, 2022. "Impact Of Board And Top Management Gender Diversity On Company Performance," Economy & Business Journal, International Scientific Publications, Bulgaria, vol. 16(1), pages 435-442.
    2. Lee D. Parker, 2008. "Strategic management and accounting processes: acknowledging gender," Accounting, Auditing & Accountability Journal, Emerald Group Publishing Limited, vol. 21(4), pages 611-631, May.
    3. Bowo Setiyono & Amine Tarazi, 2018. "Does Diversity of Bank Board Members Affect Performance and Risk? Evidence from an Emerging Market," CSR, Sustainability, Ethics & Governance, in: Belén Díaz Díaz & Samuel O. Idowu & Philip Molyneux (ed.), Corporate Governance in Banking and Investor Protection, chapter 0, pages 185-218, Springer.
    4. Pietro Marchetti & Valeria Stefanelli, 2009. "Does the compensation level of outside director depend on its personal profile? Some evidence from UK," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 13(4), pages 325-354, November.
    5. Darmadi, Salim, 2010. "Do Women in Top Management Affect Firm Performance? Evidence from Indonesia," MPRA Paper 38743, University Library of Munich, Germany.
    6. Huang, Peng & Lu, Yue & Wu, Ji, 2023. "Does board diversity in industry-experience boost firm value? The role of corporate innovation," Economic Modelling, Elsevier, vol. 128(C).

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