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Diversity in Board of Directors: Review of Diversity as a Factor to Enhance Board Performance

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  • Pechersky Alexander

    (University of Economics in Bratislava, Faculty of Commerce, Department of Marketing, Dolnozemska cesta 1, 852 32 Bratislava)

Abstract

In light of growing corporate influence in the business world and thus increasing further need to improve framework of corporate governance for shareholders’ protection, diversity is examined as a necessary factor to enhance monitoring and leadership functions of board of directors. This article analyses empirical studies with samples on various countries in order to examine effect of board composition and diversity on primary responsibilities of Board of Directors. Author is providing theoretical overview of diversity benefits and practical perspective of gender, qualifications, and background diversity in board performance. Our results show an added value of gender diversity to company performance in social and healthcare industries. Furthermore, author shows a rather negative effect of gender quotas. This study sheds a light on empirical researches and a need to include additional cultural factors called country readiness factors.

Suggested Citation

  • Pechersky Alexander, 2016. "Diversity in Board of Directors: Review of Diversity as a Factor to Enhance Board Performance," Studia Commercialia Bratislavensia, Sciendo, vol. 9(33), pages 88-101, June.
    • Handle: RePEc:vrs:stcomb:v:9:y:2016:i:33:p:88-101:n:7
    DOI: 10.1515/stcb-2016-0009
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