Demographic faultlines in boards : impact of diversity and board size

Ali, Muhammad & Ayoko, Oluremi (2014) Demographic faultlines in boards : impact of diversity and board size. In 74th Annual Meeting of the Academy of Management, 1 – 5 August 2014, Pennsylvania Convention Center, Philadelphia, PA.

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Abstract

Negative board diversity-organizational outcomes research findings have highlighted the importance of studying board demographic faultlines. Based on research gaps, this study focuses on gender diversity, age diversity, board size and faultlines formation in corporate boards. It proposes a positive linear diversity-faultlines relationship based on self-categorization and social identity theories, interaction effects of gender diversity and age diversity on faultlines based on contingency theories, and a U-shaped board size-faultlines strength relationship. The hypotheses were tested in 288 large companies listed on the Australian Securities Exchange using archival data. The results provided partial support for the interaction effects relationships and support to the U-shaped board size-faultlines strength relationship. The findings indicate that boards with low levels of age diversity experience a negative linear relationship between gender diversity and faultlines such that higher representation of women leads to weaker faultlines. The results also suggest that small- and large-sized boards experience stronger faultlines strength than medium-sized board. These results inform practice and underline implications of board demographic diversity and board size.

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ID Code: 75995
Item Type: Conference Paper
Refereed: No
Additional URLs:
Keywords: Gender Diversity, Age Diversity, Board Size, Faultlines
Subjects: Australian and New Zealand Standard Research Classification > COMMERCE MANAGEMENT TOURISM AND SERVICES (150000) > BUSINESS AND MANAGEMENT (150300) > Organisational Behaviour (150311)
Divisions: Current > QUT Faculties and Divisions > QUT Business School
Current > Schools > School of Management
Copyright Owner: Copyright 2014 [please consult the author]
Deposited On: 08 Sep 2014 22:59
Last Modified: 27 Nov 2014 20:07

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