{"title":"Board Cultural Diversity and Nonperforming Loans: What Role Does Boardroom Gender Diversity Play?","authors":"Rim Boussaada, Abdelaziz Hakimi, Majdi Karmani","doi":"10.1002/mde.4414","DOIUrl":null,"url":null,"abstract":"<div>\n \n <p>In this paper, we examine the effect of board cultural diversity (BCD) on European banks nonperforming loans (NPLs) and whether boardroom gender diversity (BGD) moderates the BCD-NPLs relationship. We used a sample of 75 banks in 20 European countries from 2011 to 2022. The System Generalized Method of Moment was performed as an econometric approach. We find that greater BCD increases NPLs and BGD moderates the BCD-NPLs relationship. The sensitivity analysis results indicate that only large banks benefit from an interaction between BGD and BCD because it lowers the NPLs ratio. Our results are robust to alternative econometric methods.</p>\n </div>","PeriodicalId":18186,"journal":{"name":"Managerial and Decision Economics","volume":"46 2","pages":"965-979"},"PeriodicalIF":2.5000,"publicationDate":"2024-11-05","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Managerial and Decision Economics","FirstCategoryId":"96","ListUrlMain":"https://onlinelibrary.wiley.com/doi/10.1002/mde.4414","RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q2","JCRName":"ECONOMICS","Score":null,"Total":0}
引用次数: 0
Abstract
In this paper, we examine the effect of board cultural diversity (BCD) on European banks nonperforming loans (NPLs) and whether boardroom gender diversity (BGD) moderates the BCD-NPLs relationship. We used a sample of 75 banks in 20 European countries from 2011 to 2022. The System Generalized Method of Moment was performed as an econometric approach. We find that greater BCD increases NPLs and BGD moderates the BCD-NPLs relationship. The sensitivity analysis results indicate that only large banks benefit from an interaction between BGD and BCD because it lowers the NPLs ratio. Our results are robust to alternative econometric methods.
期刊介绍:
Managerial and Decision Economics will publish articles applying economic reasoning to managerial decision-making and management strategy.Management strategy concerns practical decisions that managers face about how to compete, how to succeed, and how to organize to achieve their goals. Economic thinking and analysis provides a critical foundation for strategic decision-making across a variety of dimensions. For example, economic insights may help in determining which activities to outsource and which to perfom internally. They can help unravel questions regarding what drives performance differences among firms and what allows these differences to persist. They can contribute to an appreciation of how industries, organizations, and capabilities evolve.