As women and minorities are continuing to become a larger proportion of the workforce in comparison to white males, corporations are beginning to experience significant changes in pools of potential candidates as high-ranking officer positions. The diversification of these resource pools may impact the composition of boards of directors and
subsequently corporate governance. While diversity within boards of directors may be a highly visible effort to
demonstrate an absence of discrimination, it is unclear if diversity within boards of directors has an impact on organisational performance. The diversity literature suggests diversity adversely impacts group dynamics,
but improves group decision-making. However, this research has not been conducted
with boards of directors nor has it
investigated the impact of board of director
diversity on organisational performance. Our
research is designed to investigate the impact of diversity within boards of directors on firm
performance.
To examine the relationship between board
of director diversity and firm performance, we
first discuss the concept of diversity and then
relate diversity to group and organisation
performance. Ultimately, we examine specific
relationships between board diversity and
firm performance.
As women and minorities are continuing to become a larger proportion of the workforce in comparison to white males, corporations are beginning to experience significant changes in pools of potential candidates as high-ranking officer positions. The diversification of these resource pools may impact the composition of boards of directors andsubsequently corporate governance. While diversity within boards of directors may be a highly visible effort todemonstrate an absence of discrimination, it is unclear if diversity within boards of directors has an impact on organisational performance. The diversity literature suggests diversity adversely impacts group dynamics,but improves group decision-making. However, this research has not been conductedwith boards of directors nor has itinvestigated the impact of board of directordiversity on organisational performance. Ourresearch is designed to investigate the impact of diversity within boards of directors on firmperformance.To examine the relationship between boardof director diversity and firm performance, wefirst discuss the concept of diversity and thenrelate diversity to group and organisationperformance. Ultimately, we examine specificrelationships between board diversity andfirm performance.
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