IDEAS home Printed from https://ideas.repec.org/a/wsi/qjfxxx/v12y2022i04ns2010139222500124.html
   My bibliography  Save this article

Corporate Culture, Innovation, and Female Board Representation: Evidence from Earnings Conference Calls

Author

Listed:
  • Tanakorn Likitapiwat

    (Chulalongkorn Business School, Chulalongkorn University, Thailand)

  • Sirimon Treepongkaruna

    (Sasin School of Management, Chulalongkorn University, Thailand 3UWA Business School, The University of Western Australia, Australia)

  • Pornsit Jiraporn

    (Great Valley School of Graduate Professional Studies, Pennsylvania State University, USA)

  • Ali Uyar

    (Excelia Business School, 17000 La Rochelle, France)

Abstract

Exploiting a novel measure of corporate culture based on cutting-edge machine learning algorithms, we examine how female board representation influences a culture of innovation, and also whether female directors spur innovation culture in the presence of an active takeover market. Our results show that higher board gender diversity improves a corporate innovation culture considerably. Specifically, a rise in female board representation by one standard deviation improves an innovative culture by 4.37%. The findings corroborate the argument that female directors infuse the firm with new ideas and different perspectives, thereby enhancing an innovative culture. Furthermore, we also show that female board representation’s interaction with the takeover market, which is a crucial external governance mechanism, spurs a corporate innovation culture as well. This implies that board gender diversity substantially softens the negative effect of hostile takeover threats on corporate innovation. Our study is the first to link board gender diversity to a culture of innovation and show the interaction effect with takeover threats.

Suggested Citation

  • Tanakorn Likitapiwat & Sirimon Treepongkaruna & Pornsit Jiraporn & Ali Uyar, 2022. "Corporate Culture, Innovation, and Female Board Representation: Evidence from Earnings Conference Calls," Quarterly Journal of Finance (QJF), World Scientific Publishing Co. Pte. Ltd., vol. 12(04), pages 1-37, December.
    • Handle: RePEc:wsi:qjfxxx:v:12:y:2022:i:04:n:s2010139222500124
    DOI: 10.1142/S2010139222500124
    as

    Download full text from publisher

    File URL: http://www.worldscientific.com/doi/abs/10.1142/S2010139222500124
    Download Restriction: Access to full text is restricted to subscribers
    File URL: https://libkey.io/10.1142/S2010139222500124?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Chatjuthamard, Pattanaporn & Singh, Simran & Jiraporn, Pornsit & Lee, Sang Mook, 2024. "Climate change exposure, shareholder wealth, and the adoption of the Paris agreement: A text-based approach," International Review of Financial Analysis, Elsevier, vol. 94(C).
    2. Al-Shaer, Habiba & Uyar, Ali & Kuzey, Cemil & Karaman, Abdullah S., 2023. "Do shareholders punish or reward excessive CSR engagement? Moderating effect of cash flow and firm growth," International Review of Financial Analysis, Elsevier, vol. 88(C).
    3. Wongsinhirun, Nopparat & Chatjuthamard, Pattanaporn & Jiraporn, Pornsit, 2023. "Corporate culture and board gender diversity: Evidence from textual analysis," International Review of Financial Analysis, Elsevier, vol. 86(C).
    4. Ongsakul, Viput & Papangkorn, Suwongrat & Jiraporn, Pornsit, 2023. "Estimating the effect of climate change exposure on firm value using climate policy uncertainty: A text-based approach," Journal of Behavioral and Experimental Finance, Elsevier, vol. 40(C).

    More about this item

    Keywords

    Corporate culture; innovation; innovative culture; board gender diversity; female board representation; corporate governance;
    All these keywords.

    JEL classification:

    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • M14 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Corporate Culture; Diversity; Social Responsibility
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wsi:qjfxxx:v:12:y:2022:i:04:n:s2010139222500124. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Tai Tone Lim (email available below). General contact details of provider: http://www.worldscinet.com/qjf/qjf.shtml .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.