Female directors' representation and intellectual capital efficiency: does institutional ownership matter?

Ghassan H. Mardini and Fathia Elleuch Lahyani

Journal of Applied Accounting Research, 2023, vol. 25, issue 3, 397-419

Abstract: Purpose - This study examines the impact of female directors' representation in the boardroom and the role of institutional ownership (IO) on intellectual capital efficiency (ICE) and its three efficiency components: human capital efficiency (HCE); innovation capital efficiency (INCE) and capital employed efficiency (CEE). Design/methodology/approach - A sample of non-financial French firms listed within the Société des Bourses Françaises-120 (SBF-120) was employed for the period from 2011 to 2020 using the generalized method of moments (GMM) approach to test the set of hypotheses. Findings - Grounded in agency and resource dependence theories, this study found that female directors play a vital role in enhancing ICE. IO also has a significant role to play. Active institutional investors tend to push toward gender-balanced boardrooms and play an external supervisory role to improve efficiency. Moreover, female financial experts on audit committees also contribute to the ICE decision-making process within firms with high IO levels. Research limitations/implications - This study focused only on IO. Future research may use other forms of ownership, such as foreign or family ownership. Practical implications - The findings may serve as a reference for managers and policymakers to enhance IC management and make appropriate investment decisions. Managers and policymakers may rely on strategic and effective decisions regarding the efficient use of IC for value creation through the judgments of female directors. Originality/value - The current study adds significant insights to the accounting and intellectual capital literature.

Keywords: Female directors; Intellectual capital efficiency; Institutional ownership; Corporate governance (search for similar items in EconPapers)
Date: 2023
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Persistent link: https://EconPapers.repec.org/RePEc:eme:jaarpp:jaar-11-2022-0295

DOI: 10.1108/JAAR-11-2022-0295

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