Work detail

Board Diversity and Firm Performance: Evidence from the Czech Republic

Author: Mgr. Eva Parlásková
Year: 2020 - summer
Leaders: Jaroslav Pavlíček M.A.
Work type: Finance, Financial Markets and Banking
Language: English
Pages: 77
Awards and prizes:
Abstract: This master thesis is focused on an analysis of the impact of corporate board diversity on firm
performance using evidence from the Czech Republic. Return on assets, EBIT margin, EBITDA
margin, and net profit margin were used as the performance measures. Three types of board
diversity were examined in this thesis – gender, nationality, and age. Gender and nationality
diversity were both represented by the percentage of women or foreigners on board, and by a
dummy variable indicating the presence of women or a foreigner on board. The age diversity was
measured by the average age of all board members. Some additional control variables were
included in the models such as firm age, firm size, liquidity, etc. Our research is using data from
114 Czech enterprises between the years 2010 and 2018. The fixed-effects or the random-effects
method was used to determine the relationship between board diversity and firm performance. The
results show that there is a significant and positive relationship between the presence of women
on board and firm performance. The average age of board members has a significant negative
effect on all dependent variables. Nationality diversity has a mixed effect on firm performance.




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