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The influence of demographic, cultural, and educational background in the boardroom on firm performance – The Croatian evidence

Author

Listed:
  • Tomislava Paviæ Kramariæ

    (University of Split, University Department of Forensic Sciences, 21 000 Split, Croatia)

  • Marko Miletiæ

    (University of Split, University Department of Professional Studies, 21 000 Split, Croatia)

Abstract

This study investigates the demographic, cultural and educational features of management boards of Croatian manufacturers. The analysis, conducted using static panel analysis, encompasses the period from 2015 to 2019. To the impact of different board characteristics on firm performance expressed with accounting- oriented performance measures such as return on assets (ROA) and return on equity (ROE), this study includes several explanatory variables comprising CEO tenure, age of the board members, the share of foreigners in the boardroom and finance educational background. Additionally, a few firm-specific variables included in the research are firm size, leverage, and firm age. The analysis findings reveal that board composition plays a crucial role when explaining the firm’s profitability. Furthermore, the firm’s maturity and leverage additionally prove to be significant factors affecting corporate performance.

Suggested Citation

  • Tomislava Paviæ Kramariæ & Marko Miletiæ, 2022. "The influence of demographic, cultural, and educational background in the boardroom on firm performance – The Croatian evidence," Zbornik radova Ekonomskog fakulteta u Rijeci/Proceedings of Rijeka Faculty of Economics, University of Rijeka, Faculty of Economics and Business, vol. 40(1), pages 79-95.
    • Handle: RePEc:rfe:zbefri:v:40:y:2022:i:1:p:79-95
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    References listed on IDEAS

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    More about this item

    Keywords

    demographic board diversity; cultural board diversity; firm performance; Croatian manufacturers;
    All these keywords.

    JEL classification:

    • G30 - Financial Economics - - Corporate Finance and Governance - - - General
    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance

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