IMPACT OF GENDER AND ETHNIC COMPOSITION OF SOUTH AFRICAN BOARDS OF DIRECTORS ON INTELLECTUAL CAPITAL PERFORMANCE

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Mitchell Van der Zahn ORCID logo

https://doi.org/10.22495/cbv2i1art1

Abstract

This study examines the association between the gender and ethnic composition of boards of directors and firm performance in a transitional nation. In contrast to prior research that largely focuses on firm performance within a financial context, this study concentrates on intellectual capital performance. Using data collected from 84 South African, empirical results indicate a positive association between the percentage of female and non-white directors on the board and a firm’s intellectual capital performance. Additional analysis shows the designation of female directors as an insider has a negative effect of intellectual capital performance. Designation of female and non-white directors as outsiders, meanwhile, has a positive influence on a firm’s intellectual capital performance. Finally, there was no association between the percentage of non-white inside directors on the board and intellectual capital performance.

Keywords: Intellectual capital performance; board structure; transitional economy; gender; ethnic background

How to cite this paper: Van der Zahn, J-L. W. M. (2006). Impact of gender and ethnic composition of South African boards of directors on intellectual capital performance. Corporate Board: role, duties and composition, 2(1), 7-22. https://doi.org/10.22495/cbv2i1art1