Note
Includes bibliography.
Member of
Contributors
Publisher
Florida Atlantic University
Date Issued
2022
EDTF Date Created
2022
Description
In this manuscript, I present two essays which examine the role of diversity within the corporate boardroom.
The first essay determines that board compensation practices at competing firms influence the remuneration arrangements of directors. Consistent with the observational learning perspective, directors mimic the behavior of peer firms in setting their own compensation, but that diversity, in the form of gender, race/ethnicity, education, and experience moderates this relationship. Diversity also leads to better board performance measured through its impact on excess CEO compensation and CEO turnover sensitivity.
In the second essay, I document the presence of peer influence in diversity hires. As firms within an industry hire more women and minority directors, others will do the same. This type of herding behavior has both positive and negative outcomes. Firm stock and operating performance is worse in the years after a peer-driven diversity hire, yet board performance is better. I conclude that peer-driven decisions may be suboptimal, but that diversity can promote better governance in the boardroom.
The first essay determines that board compensation practices at competing firms influence the remuneration arrangements of directors. Consistent with the observational learning perspective, directors mimic the behavior of peer firms in setting their own compensation, but that diversity, in the form of gender, race/ethnicity, education, and experience moderates this relationship. Diversity also leads to better board performance measured through its impact on excess CEO compensation and CEO turnover sensitivity.
In the second essay, I document the presence of peer influence in diversity hires. As firms within an industry hire more women and minority directors, others will do the same. This type of herding behavior has both positive and negative outcomes. Firm stock and operating performance is worse in the years after a peer-driven diversity hire, yet board performance is better. I conclude that peer-driven decisions may be suboptimal, but that diversity can promote better governance in the boardroom.
Language
Type
Form
Extent
118 p.
Subject (Topical)
Identifier
FA00013907
Rights
Copyright © is held by the author with permission granted to Florida Atlantic University to digitize, archive and distribute this item for non-profit research and educational purposes. Any reuse of this item in excess of fair use or other copyright exemptions requires permission of the copyright holder.
Additional Information
Includes bibliography.
Dissertation (Ph.D.)--Florida Atlantic University, 2022.
FAU Electronic Theses and Dissertations Collection
Date Backup
2022
Date Created Backup
2022
Date Text
2022
Date Created (EDTF)
2022
Date Issued (EDTF)
2022
Extension
FAU
IID
FA00013907
Organizations
Attributed name: Florida Atlantic University
Attributed name: Department of Finance
Attributed name: College of Business
Person Preferred Name
Damm, Jason
author
Graduate College
Physical Description
application/pdf
118 p.
Title Plain
TWO ESSAYS ON PEER EFFECTS AND DIVERSITY WITHIN THE BOARDROOM
Use and Reproduction
Copyright © is held by the author with permission granted to Florida Atlantic University to digitize, archive and distribute this item for non-profit research and educational purposes. Any reuse of this item in excess of fair use or other copyright exemptions requires permission of the copyright holder.
http://rightsstatements.org/vocab/InC/1.0/
Origin Information
2022
2022
Florida Atlantic University
Boca Raton, Fla.
Place
Boca Raton, Fla.
Title
TWO ESSAYS ON PEER EFFECTS AND DIVERSITY WITHIN THE BOARDROOM
Other Title Info
TWO ESSAYS ON PEER EFFECTS AND DIVERSITY WITHIN THE BOARDROOM