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Female directors in the boardroom and intellectual capital performance: Does the “critical mass” matter?

Author

Listed:
  • Hafiz Mustansar Javaid

    (Sapienza Università di Roma)

  • Qurat Ul Ain

    (University of Salerno
    Xi’an Jiaotong University)

  • Rita D’Ecclesia

    (Sapienza Università di Roma)

Abstract

This research aims to investigate the influence of female directors on Intellectual Capital Performance (ICP) using a sample of manufacturing-listed companies in China. Our study investigates the link between having two or more female directors and the Modified Value-Added Intellectual Coefficient (MVAIC) methodology, employing the critical mass theory from 2004–2017. We find that having a critical mass of female directors (three or more) shows a significant positive impact on MVAIC and its components, including human capital efficiency, structural capital efficiency, relational capital efficiency, and physical capital efficiency, with physical capital being the critical driver. Our study reveals that the critical mass participation of female directors substantially influences the IC efficiency of privately owned companies compared to state-owned companies. Moreover, the number of female directors also affects the IC performance of manufacturing companies in multiple regions. Our findings support the validity of group classification identified by Kanter and Critical Mass Theory. To the best of our knowledge, this is one of the few pieces of research that studies the role of female board directors in IC performance and Chinese manufacturing firms using MVAIC as an IC measure.

Suggested Citation

  • Hafiz Mustansar Javaid & Qurat Ul Ain & Rita D’Ecclesia, 2023. "Female directors in the boardroom and intellectual capital performance: Does the “critical mass” matter?," Financial Innovation, Springer;Southwestern University of Finance and Economics, vol. 9(1), pages 1-24, December.
    • Handle: RePEc:spr:fininn:v:9:y:2023:i:1:d:10.1186_s40854-023-00476-4
    DOI: 10.1186/s40854-023-00476-4
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