The Nexus among board diversity and bank stability: Implications from gender, nationality and education

Marwa Elnahass; Rana Alharbi; Toka S. Mohamed; Josie McLaren

doi:10.1016/j.ememar.2023.101071

The Nexus among board diversity and bank stability: Implications from gender, nationality and education

Marwa Elnahass^*
, Rana Alharbi
, Toka S. Mohamed
, Josie McLaren

^*Corresponding author for this work

Research output: Contribution to journal › Article › peer-review

25 Scopus citations

Abstract

This study investigates how diversity in the board of directors affects bank stability. We examine diversity in terms of gender, academic education, and nationality. Using a unique (global) sample from 14 countries, we find strong evidence that banks with female directors on the board are positively associated with bank stability. Directors holding high educational qualifications (PhD) are positively associated with bank stability. Conversely, foreign directors on the board are significantly and negatively associated with bank stability. Conditional on the bank type, our results reveal significantly differential effects of gender, nationality, and education on bank stability.

Original language	English
Article number	101071
Journal	Emerging Markets Review
Volume	57
DOIs	https://doi.org/10.1016/j.ememar.2023.101071
State	Published - Dec 2023
Externally published	Yes

Bibliographical note

Publisher Copyright:
© 2023 The Author(s)

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

SDG 5 Gender Equality
SDG 10 Reduced Inequalities

Keywords

Bank performance
Bank risk
Bank stability
Bank type
Board diversity

ASJC Scopus subject areas

Business and International Management
Economics and Econometrics

Access to Document

10.1016/j.ememar.2023.101071

Cite this

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title = "The Nexus among board diversity and bank stability: Implications from gender, nationality and education",

abstract = "This study investigates how diversity in the board of directors affects bank stability. We examine diversity in terms of gender, academic education, and nationality. Using a unique (global) sample from 14 countries, we find strong evidence that banks with female directors on the board are positively associated with bank stability. Directors holding high educational qualifications (PhD) are positively associated with bank stability. Conversely, foreign directors on the board are significantly and negatively associated with bank stability. Conditional on the bank type, our results reveal significantly differential effects of gender, nationality, and education on bank stability.",

keywords = "Bank performance, Bank risk, Bank stability, Bank type, Board diversity",

author = "Marwa Elnahass and Rana Alharbi and Mohamed, \{Toka S.\} and Josie McLaren",

note = "Publisher Copyright: {\textcopyright} 2023 The Author(s)",

year = "2023",

month = dec,

doi = "10.1016/j.ememar.2023.101071",

language = "English",

volume = "57",

journal = "Emerging Markets Review",

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T2 - Implications from gender, nationality and education

AU - Elnahass, Marwa

AU - Alharbi, Rana

AU - Mohamed, Toka S.

AU - McLaren, Josie

PY - 2023/12

Y1 - 2023/12

N2 - This study investigates how diversity in the board of directors affects bank stability. We examine diversity in terms of gender, academic education, and nationality. Using a unique (global) sample from 14 countries, we find strong evidence that banks with female directors on the board are positively associated with bank stability. Directors holding high educational qualifications (PhD) are positively associated with bank stability. Conversely, foreign directors on the board are significantly and negatively associated with bank stability. Conditional on the bank type, our results reveal significantly differential effects of gender, nationality, and education on bank stability.

AB - This study investigates how diversity in the board of directors affects bank stability. We examine diversity in terms of gender, academic education, and nationality. Using a unique (global) sample from 14 countries, we find strong evidence that banks with female directors on the board are positively associated with bank stability. Directors holding high educational qualifications (PhD) are positively associated with bank stability. Conversely, foreign directors on the board are significantly and negatively associated with bank stability. Conditional on the bank type, our results reveal significantly differential effects of gender, nationality, and education on bank stability.

KW - Bank performance

KW - Bank risk

KW - Bank stability

KW - Bank type

KW - Board diversity

UR - https://www.scopus.com/pages/publications/85173025248

U2 - 10.1016/j.ememar.2023.101071

DO - 10.1016/j.ememar.2023.101071

M3 - Article

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SN - 1566-0141

VL - 57

JO - Emerging Markets Review

JF - Emerging Markets Review

M1 - 101071

ER -

The Nexus among board diversity and bank stability: Implications from gender, nationality and education

Abstract

Bibliographical note

UN SDGs

Keywords

ASJC Scopus subject areas

Access to Document

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Cite this